The Washington times., 1921-01-26
MEASURE SENT
UP TO HOUSE
District COMMITTEES, With One
Directing Voice, Votes for
Unified Operation. I
WORK BEGUN ON new Law
Chairman Mapes Opposes
Project, But Lacks Support
of Other Members.

With the single exception OF
Chairman Mapes, the House Dis
trict COMMITTEES today ordered fav-
orably reported bill paving tho
way for a merger Of Washington's
two street railway systems, by re-
moving the specific restrictions that
now stand in the way Of CONSOLE
dation Of the Washington Railway
and Electric Company and the Po-
tomac Electric Power Company.
COMMITTEES TO BE NAMED.
Following this action, the commits
tee then adopted q motion directing
Chairman Mapes to appoint sub
committee Of five members to con-
slider and report favorably bill for
the merger of the Washington Rail-
way and Electric Company with tho
Capital Traction Company.
This was accomplished after tho
committee refused to consider a mo-
ton to postpone street railway leg
islation indefinitely at this time -
. Chairman Mapes alone voted
against both propositions. holding
-S.ut to the last, the other twelve
members present voting solidiy
against him
LEGISLATION ADVANCED.
Merger LEGISLATION advanced more
during the hour and a half discus
sion today than during all the con-
sideration of the last two years, the
result being that the committee in
tends to get together on concrete
proposition by which all the proper,
ties owned by the Washington Rail-
way and Electric Company can be
put into a merger with the Capital
Traction Company. thus removing
the principal obstacle that has stot
in the way Of general merger leg's-'
lation.
Congressman Ben johnson. by per;
sistent effort. forced the committe"
to go on record in favor Of consolidat-
ing the Potomac Electric Powcr Gem
pany with the Washington Railway
and Electric Company. 1t remained
for Congressman Focht Of Pennsyl-i
vania, to force a vote in COMMITTEES
on the proposal to report bill i'm
Imediately to this effect.
Chairman Mapes opened n broad
field of discussion by presenting his
own ideas Of the merger question en-
bodied in a bill which he said he in,
tended to introduce.
PROPOSITION DEFEATED.
Under the proposition he proposed
to levy an excess profits tax of 100
per cent on the earnings of all street
railways in the District Of Columbia
in excess Of 6 per cent net income.
His proposition was showed ludoF
in the opposition that arose over IT.
Congressman Woods of Virginia
put up his own proposition, which,
he said, would pave the way for 2
merger which has the approval OF
the Capital Traction Company.
BY his plan an excess profits tax
of so per cent would be imposed in
excess of per cent net income
1t also would impose a tax of 1 per
cent on gross receipts, differing from
the present tax of 4 per cent. I'm
der his bill the street car companies
would be relieved of the mainte-
nance of crossing policemen and
paving charges.
At the outset of the meeting to-
day, Chairman Mapes expressed the
opinion that IL would be impossible
to pass merger legislation in tho
House at the present time. He de-
clared he believed the two street
railway systems were "as far rpart
from n merger as the two poles'
Other members of the COMMITTEES
agreed that action IN tne mouse Wouu
be impossible on merger legislation,
but insisted that the committee
should. at least go on record in favor
OF some concrete proposition by
which q merger would eventually be
brought about.
CITES OBJECTIONS.
Mr.. Mapes, referring to the bill, said
he believed that II clause were in
serted repeating the excess profits tax
after the merger Is made effective, IL
would go long way toward bringing
about an immediate consolidation Of
the two companies.
Mr.. Woods declared. thc**he trouble
was that every attemx Va. merger
contemplated putting t&l.S he capital
of the Capital Traction 0ompany and
leaving out the major part of the
Washington Railway and Electrta
Company.