Evening star., 1922-04-01
HAMILTON TALKS
ABOUT CONDITIONS
Merchants Bank and Trust
AbSorbs Dupont - CONT
mental Takes Union SAVINGS.
BY I. A. FLEMING.


George E. Hamilton. president of
the Capital Traction Company. has
mailed a circular letter to the share.
holders of the corporation, setting
forth at some length the more i'm
portant happenings and conditions
affecting the company and its opera
| tions during the first three months of
1922"
The letter follows:
Following a public hearing held
on February l, the utility commission
of the District of Columbia, on Feb
ruary 2S, continued the then existing
rate of cash fare at cents, but re-
duced the token fare from z cents to
6 2-3 cents.
The provision in the contract with
our employees for reopening the wage
question on thirty days notice prior
to March 80 was not taken advantage
of by either the company or the men.
and, accordingly. there is no change
In the rate of wage paid our en-
ployes. AS stated at the hearing
above referred to, il is our belief that
the best interests of the people Of
Washington will be served if the
present fare and liberal wages are
continued. for If this is done the peo-
pie will be given a much better serv-
ice than would be the case if those
who directly serve them were paid a
less liberal wage and were conse-
quently less satisfied with their en-
ployment."
The Merger Question.
THE question OF a merger between
the Capital Traction Company the
Washington Railway and Electric
Company and its subsidiary street
railways and the Potomac Elec-
Svio
know, for some time been the sub
ject of popular discussion and news
paper comment.
During the month Of March the
Senate committee on the District OF
Columbia entered upon the consid-
Grafton of a bill to authorize the
merger of street railway corporations
| in the District of Columbia, and for
other purposes
This bill permits the voluntary mer-
ger OF said companies, but with the
thought that IL might promote a merger
provision was included changing the
| method of taxation by abolis.ling the 4
per cent tax on gross receipts of street
railway corporations and imposing in
| lieu thereof an excess profits tax of 50
1 per cent upon the net operating income
\ in each year in excess OF per cent and
not exceeding Z per cent on the fair
value OF the property of each conlpany,
! and upon the net operating income Of
&
value, a tax of IS per cent.
Tax Called Unjust.
This tax provision, if enacted into
1 law. would materially reduce the taxes
| paid by the Washington Railway and
Electric Company on its railway opera
tions, would not affect the large earn
| ings of the Potomac Electric Power
Company and would confiscate a por-
! ton of the net earnings of the Capital
Traction Company by largely increasing
its taxes.
The position taken by your executive
officers was that such an excess profits
! tax and its application to the Capital
| Traction Company was discriminatory
| and unjust to the company and of no
| benefit to the people Of the District OF
Columbia; that it was a use of the tax
; ing power not contemplated by law, and
that in our opinion il would defeat
rather than promote the merger of the
companies; that Congress could. Of
course, exercise the right of eminent
domain and condemn or take over the
properties Of the companies, or either
. of them, on payment in money for the
value fairly ascertained, but Congress
could not compel the stockholders of
any company, against their will, to ac-
| cept in lieu of their holdings in that
company the stock of any other COM
pany or organization
Do Not Look for Enactment.
will enact law so unjust in Drinci-
pie and so unfair in application, but
| even such an enactment could not
! take away from the stockholders of
our company their right to fair re-
| turn on their investment.
| The view of the officers and direc-
| tors Of YOUR company on the question
| Of merger is fully set out in the an
nual report for the year ending De
| cember 81, 1920, and again referred
to in the annual report for the year
| ending December 81, 1921.
| GEORGE z. HAMILTON.
president"
! Merchants' Bank Evolution.
| The Merchants Bank closed the
| doors of its G street establishment
promptly at IL o'clock today. and as
! soon as the books and accounts Were
put into ''close-of- business" order the
removal of the effects, including sS.-
| 100000 resources, started, the en-
i ployes one and all following the val
l uables to the new home.
| On Monday morning the Merchants
Bank and Trust Company, capital
! s., ,000.o 900, will open for business on
| Tho ain HOOr the SQntharp hnil1-