The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1922-03-21


car lines. Senator Bail asked EN-.
gineer Commissioner Keller for an
expression on the matter, and the
Commissioner said he believed the
merger would do away with the
Pepco. Recognising II as q part Of
the car company. Mr.. Hanna said
the tax plan would exempt the W.
r. & y, because OF the fact that
its earnings are less than per
cent. He also said the valuation OF
the Capital Traction may be ir-
creased materially by the courts
IN pending litigation on that sub
ject.
secs Ne Immediate HeIp.
Mr.. Hanna could see no imme-
date benefit to the public In a mer-
ger and but little to the compa niles,
since. as he said. there is no sur
plus trsckage or other duplication.
He said the merger could not ;e-
suit in 4 lower fare, as the fare
today Is less than II would be un-
der a reasonable return of the COM
bined COMPANIES fairly evalustcd.
Senator william II. King asked
me witness as to difficulties of
segregatinG the costs OF operation
in case of a merger OF the Pepco
with the W. II. 4 f. and other car
lines and was informed that this
could be done. but the merger
would save I'ttIe IN the elimination
of overhead-probablv $4,000 and
little in reroutIng.
service At Cost"
Mr.. Hanna said the Capital Trac-
tion Company Is under greater ex-
penses than in 1914 when :he fare
was cents. paying car men now
IS. so a day against s2.25 then and
about double for coal. He said there
Is only one solution to the street
car problem and that Is service
at cost. as advocated by former
Mayor Tom johnson of Cleveland.
This applied upon a fair valuation,
he said. would give residents the
lowest car fares practicable. He
said the Capital fractions prosper
ity is due to is policy. established
sixty years ago. of giving che pub
lie a dependable service and receiv-
ing the DartialIty of the public. The
Capital Traction carries - rer cent
of the passengers on one-thlrd the
total mileage in the District, he
said.
Ham Explains DimcultIes.
President Ham of the w. +. & f.
said that since 1914 at various rate
hearings before the Utilities COM
mission the commission has re-
ferred to the fact that his company
was given a return less than that
to which IT was entitled. and ex-
planned the difficulties under which
it is operating. He said the W. r.
L z. is earning only is per cent
Al n
less than the returns il is entitled
to. He believed that the 4 per cent
gross tax Is a tax on its franchise.
Regardless Of the tax. he said. 1t
Is unfair. under present circum-
stances for his company to be COM
PEELED to pay Z per cent tax. This
Is the view. he said. Of its 5000
shareholders. He favored authorize
ton of the merger by Congress. He
said he saw no reason for eXclud-
ing the Old Dominion and Virginia
lines. as proposed by Mr.. Hanna,
because Of their Improbable condi-
ton, but would make the law per-
missive as to them and the other
lines in general. He said the rate
of car fare is now lower than IL
could be fixed by the merger and he
believed the merger might bring
about a failure OF a decrease in car
fare. He said the competition Is
now the keenest. and a forced mer-
ger might hurt. rather than help
the two companies.
Pleads for .CIadereIIa.-
Mr.. sheldon Iikened the Wash
inGton and Maryland Company to
Cinderella. whose foot the silver
slipper of merger fitted, and said
its $4,000 deficit should be taken
care OF by lines with excess
earnings.
Mr.. Columbus referred to the
situation as serious. said trans
portation was vital to all and its
lack would impair the city. He be-
lieved a lower fare possible through
merger and declared lower car
fare was more important than
cheap heating and lighting.
Mr.. Seymour filed a declaration
of principles adopted July 10, 1921,
by the Washington Chamber Of
Commerce. favoring the car merger,
the Pepco included-a merger OF all
lines that would be fair to the pub
lie and the companies as to rates
for light, power and car fare.
says Valuations Are Fair.
Commissioner Keller said it was
the view Of the Utilities Commits
sion that the two principal COM
panies in the merger should be
forced to take in the subsidiaries.
which were those of the Washing
ton Railway and Electric Company.
the two smaller companies which
are not subsidiaries being excluded.
He said the net tax was not re-
a..
sion was not antagonlstic to the
Capital Traction. He said the COM
missions latest fare order was not
regarded by the public as much in
itc own favor.
The valuations were proper and
right Col. Keller said. He declared
the w. r. e. f. has some advan-
taGes over the Capital Traction.
its credit valuation being equal and
its efficiency as measured by cost
per mile operation being about
equal. Some means Of bringing
about the merger should be found,
he said. on a basis of combined val
ustion. or IL should be forced by
the taking away of a portion of the
Capital Traction revenues, which
are far beyond fair return.
BETTER Service Seen.
The merger. he asserted, may not
Immediately result in lower fair,
but will do so after the better serv-
ice has been effected and the oper-
atoms are smooth-runninE. There
would be economies, he believed.
There would be a reduction in over
head personnel and some economy
in the more efficient and effective
plant in distributing cars. etc.