The Washington herald., 1922-03-03
Several Leaders Demand
Passage of Bills for
Immediate Union.
SEES PERILOUS ;.
LOOPHOLE LEFT
Representative Wood
Says Commissions
Plan Is Defective. o.

Attacks on the Public Utilities
Commissions scheme for a merg-
Ing Of the street railway systems
through remedial tax Legislation
will be directed in the merger hear
ihss IL Congress next week by pro-
ponents of bills calling for immc =
date merger of the two systems, II
was Indicated yesterday.
The proposition OF the Public
Utilities Commission TO make pos
sible~a union of the two companies
through pairing Of their earnings
to an equal basis by a SO per cent
tax OF the net revenue of the com.
panies above a s per cent return on
the fair valuation of the property
met with little favor among many
members OF the Senate and House
District committees yesterday.
Fear Dangerous Leophsle.
Fear was expressed by Congress h.
sionsl leaders that not only would
the bill fail to bring about an ulti-
mate merger, but II left a loop
hole by which the street railway
companies might entirely escape
taxation.
I'VE have fused around long
enough. This is tune for direct
action. A law authorizing volun-
tary merger of the companies must
come before remedial tax legisfa-
tion." Senator William King, Of the
District Committee, said yesterday
Senator King has a bill now before
the committee providing for re-
mcyal of restrictions which prohibit
a voluntary merger of the compa
nles.
"A merger can be brought abou,
only by direct action, and it 1,
time for this. BY the scheme oi
the Public Utilities Commission the
street railways. are In a position t.
escape all>tsxation." Representative
James Wood, of the District Com.
mittee, declared.
The utilities proposition for :
pairing of the earnings of the com
panies to an equal basis -througt
! tax legislation Is before Congress,
lin bills sponsored by Senator L. II
! Ball. chairman of the Senate Dis.
trict Committee, and Representative
BE njamin K. Focht, chairman Of tht
House District Committee. Similar
legislation advocated by the Public
Utilities Commission two years age
was not received, favorably b.
either committee.
The Woods bill in the House. pro-
! viding for removal of legal re.
strictions preventing voluntary
merger of the companies and au-
thorizins merger Of, the companie.
recently was voted favorably BY
the House District Committee 6.
the basis for their future consid
Grafton.
Representative Woods declared
last night he would force action by
the committee on this basis when
merger of the companies Is again
considered. He pointed out that the
Public Utilities Commission bill w1s
rejected by the committee two years
ago as "insuficient.' The, Commits.
sion bill leaves the companies open
to escape all taxation. he says, by
reductions in their fares to escape
| receipt of more than a per cent
return on the fair valuation OF their
properties. Only revenue above
this 6 per cent return Is taxable
under the Commission bill. In tht
Woods bill this same tax Is provided
| with an additional tax of 1 per cen,
on the gross receipts of the com
panies.
Both the Senate and House will
take up consideration OF the merger
bills next week. IL was indicated