The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1922-03-16
New Senate Bill Includes
p. E. p. Co. With
Railway.
TAXATION TO FORCE
QUICK COMPLIANCE
Strong Opposition Devel-
ops Among Many
Senators.

CONSERVATION OF all the street
car lines Of Washington will be
authorized in new merger bill
to be introduced by Senator l.
Heisler Ball
The measure will include taxa
tion by which the earning ca
pacity of the varSss lines would
be equalized, and the absorption Of
the Potomac Electric Power COM
pany by the Washington Railway
and Electric Company. The power
company is an auxiliary OF the
W. R. & E. Experts on the sub
ject have said that distinctive utiH-
ties should not be placed under
one control. Because OF widespread
views along this line il Is expected
that the new plan will meet with
considerable opposition. a.
Merger Opposed.
The opinion that the Pepco.
which furnished heat and lighting.
should remain separate and distinct
from any street car Interests is
| said to be felt strongly among Dis
trict officials as well as many
stockholders Of the various utili-
ties.
The bill proposing to increase the
taxes OF street car companies from
to 50 per cent on net incomes
over 6 per cent, or IS per cent ON
net incomes over IS per cent. as a
means of eQuslizing the earning
capacity of the companies, was
considered by the Senate Distric,
| Committee in executive session yes
terdsy. The purpose OF the bill. "a
was explained, was 10 oyercoms
objections Of the Capital Traction
Company, whose incomes are much
larger than those Of any other
company. to merging with q COM
pany, specifically the W. r. a T.
whose earnings are much smaller.
King strongly OPPsSeS.
Senator William H. King. Of Utah.
was perhaps the most Outspoken foe
OF the plan. He explained that
while a merger OF the car lines was
very desirable and undoubtedly
7 would result in better service.
economy TO the companies and a
reduced car fare. he was opposed
TO the idea Of penalizinE the sue
cessful company in the interest OF
the public and the less successful
company. He hoped IL could be
found possible TO bring about a
merger without such Injustice
The idea of the acquisition by
) the richer company OF the w. IT, &
E, and possibly all the other COM
panies. was strongly favored. and
the belief was expressed that IL the
, companies were granted legal per-
mission 10 merge IL might be ac-
complished in this way. The COM
, mittee agreed to redraft the merger
/ bill, embodying the bill which was
introduced by Senator Rail-. who Is
: chairman OF the committee, in April
. last year.
Apply the screws.
: BY including the taxation teatur,
t ii was felt that II the companies
e failed to get together after Con.
4 Eress had authorized them to merge
r the tax could be applied as a
e thumb-screw to bring them &c
: time. The fact that the public OF
Washington is entitled 20 bettes
service and a REDUCED fare was rec.
E ognized by the Senators at the briei
, committee meeting.
= Senator Balrs hill Of last year
l which will BECOME a part or th'
: new measure. provides in part:
. That the Capital Traction Com,
pany. the East Washington Heights
Traction Railroad Company. ths
Washington and Maryland Railwss
Company. the Washington and viz.
ginia Railway Company. the Wash,
ington and Old Dominion Railway
Company. the Washington Railway
and Electric Company. the George,
town and Tennallytown Railway
Company. the washinEton-Interur
ban Railway Company. the City and
! Suburban Railway of Washington
/ and the Washington and Rockville
] Railway Company Of Montgomery
County be authorized to merge OF
consolidate all and singular theli
) respective incorporate rights. privi'
! leges and franchises. and all theii
: respective works and properties"
: Senator Ball was instructed by
] the committe TO report the bill i'm
! mediateIy upon its introduction, it'
. terms having been fully considered
and immediate consideration may
! be given.
I The merger situation was moi
{ considered on the House side yes
. terday.