The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1922-03-24
BALL WILL NOT
CHANGE MERGER
To SUIT KELLER
Senator Is Opposed to Trac-
ton Plan Proposed by D. c.
Commissioner.

The Ball-Jones traction merger
bill will not be changed to tit the
recommendations OF the Public Util-
tiles Commission, Senator Ball, chair
man Of the Senate District Com
mittee, declared today.
The dual measure - containing
both. the voluntary merger and the
excess profits tax features-alreaiy
has been approved by the Senate
District Committee and IL on the
Senate calendar. The District Com
mittee does not think 1t would be
wise to make any change in the
existing status.
The King amendment. providing
for deduction from net income N
the way Of money spent for repairs.
improvements, maintenance, and 80
forth by the two traffic companies
In computing the excess profits tax,
has not yet been referred to the
District Commissioners. 1t is be-
lieved that Colonel Keller will
strongly oppose the amendment, in.
asmuch as II will serve to Tighten
and not to eliminate entirely the ex-
cess profits tax upon the Capital
Traction Company under the terms
Of the merger bill.
To Hold Conferences.
Senator Ball probably will hold
further conferences with Colonel
Keller in the near future. 1t Is
understood that the latter Is APP
prehensive Of opposition to the
merger bill on these points:
First, that the excess profits tax
principle has been repudiated by
Congress in the framing Of the new
general tax laws, which went into
effect last January.
Second. that there are a number
Of technical features in the vol
untary merger portion OF the bill.
particularly those relating to the
absorption Of the smaller and out
lying companies, which may cause
litigation.
Against Profits Tax.
Senators Stanley and King are the
only two members OF the Senate
District Committee who have an
nounced their opposition to the ex-
cess profits tax feature OF the
merger bill Senator King Is on
record as saying that II would be
far better and more effective to
create a differential in the rate OF
fare to be allowed the two com
panies, in accordance with their
earning capacity. and thus take
advantage OF the new situation that
will be brought about
Senator King has said that II such
a fare differential should throw the
Washington Railway and Electric
Company into ahreceivership. a re-
organization OF the whole traction
situation in Washington would be
inevitable. In his recent letter TO
Senator Bal, Colonel Keller declared
that the only alternative to the AZ
cess profits tax as means or
forcing a merger was to set different
fares for the two companies, allow
ing each a fair return.
Senator Ball conferred today with
George r. Hamilton. president OF
the Capital Traction Company on
the proposed merger. Mr.. Hamil-
ton told Senator Ball that he be
lieved that under the proposed
merger bill the Potomac Electric
Power Company, subsidiary OF
the Washington Railway and Elec-
trio Company. would not be COM
PEELED to go into the merger. Sen
ator Ball promised him to look into
the phraseology Of the bill and that
II there was a loophole for the
electric light company to get out
Of the merger. he would see that
the defect in the bill was remedied.