The Washington herald., 1921-07-08
WOODSMERGER
Bill REPLACES
KELLER'SPLAN
Would Permit the Power
Company to Enter
Combine.
MEMBERS PROMISE
FIGHT ON MEASURE
d. C. Committee to Modi-
fly Bill, Zihlman
+ Believes.

mittee were assured yesterday
when the committee agreed to sub
stitute the Woods bill, allowing the
street car companies to merge with
the Potomac Electric Power Com
pany, for the Keller bill authoriz-
ing municipal ownership.
Several members Of the commit
tee still being absent, a motion was
made by Representative Lampert.
and urged by Representative Kunz,
to adjourn. This motion was de-
feated, however, by a tie vote. II
was then decided that q vote be
taken on the motion of Representa-
tive Underhill to substitute the
Woods bill for the Keller bill. A
roll call by Chairman Focht pro-
duced Il votes for and against
substitution
Cites Many Failures
Representative Underhill citeo
several cases in Massachusetts,
where municipal ownership had
failed. Mr.. Keller retaliated by
claiming that in the city OF Boston
private ownership had been ac-
knowledged to be failure, mas
much as they were now operating
on a 10-cent fare and claimed that
they were not making a reasonable
amount OF money.
In attempting to discredit NUM-
cipal O. ownership, Representative
Millspaugh cited the cases of the
Milwaukee and St. Louis street
railways, where. with a so per cent
reduction in their capitalization.
these systems were acknowledge
to be losing money with a IN cent
fare. The point Of Mr.. Millspaugh's
argument seemed to be lost in the
fact that these two street car COM
panies are not municipalIy-ownec.
wouId Reduce Fares.
Representative Woods spoke a,
length upon the merits of his bill,
claiming that It would be possible
to have a four-tickets-for-a-q
rate should the street car companies
avail themselves of the opportunity
to merge under the provisions. The
cent gross tax to 1 per cent, and
relieve the street car companies OF
part of the paving expense they
now bear and the payment of cross
ing policemen. It allows the cor
porations to make a reasonable re-
turn upon their fair valuations. and
establishes per cent as reasonable
return. 1t then places a so per
cent tax upon the net earnings of
the two companies.
The opponents OF the Woods hill
base their objections upon its pro-
vision to include the Potomac Elec-
trio Power Company in a merger
of the two street car companies.
They are also OF the opinion that
a plan to tax the successful COM
pany to- make up a deficit Of the
unsuccessful company condones the
failure and bad management Of the
one company and penalties the cor
poration that has given the public
the best service. The objection to
the tax method may be overcome,
II was understood yesterday, but
several members of the committee
say that they will fight the merger
of the Washington Railway and
Electric Company with the Potomac
Electric Power Company all sum-
mer.
Substitute Planned.
1t is also planned to attempt the
substitution of the Hammer bill for
the Woods bill at the committee
meeting next Wednesday.
The Hammer bill compels the i'm
mediate reduction of the street car
fares to Z cents as found possible
and fair by the Utilities Commits
sion recently when they notified the
street car companies that a reduc-
tion in the rate was found to be
justifiable. Unless the substitution
Of the Hammer bill for the Woods
bill can be effected II Is planned to
use the Woods bill as a nucleus
upon which to build some measure
that will be satisfactory to q ma
jority of the members and pre-
sented to Congress.
Ham Submits Figures.
Representative Zihlman said ves-
terday that the Woods bill modi-
ned and amended will eventually
be favorably reported out by the
committee. Just what changes were
likely to Re made Mr.. Zihlman was
not prepared to say, but he thought
II possible that an amendment
might be added that would compel
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