The Washington herald., 1922-03-07
Law Uniting District
Traction Lines Assured
Before Adjournment.
TAXING FEATURE
TO BE AUXILIARY
New Bill EmbOdies Fea.
lures of Measure
Now i'm House.

A satisfactory plan for merging
the District traction lines and all
their subsidiary properties has been
decided upon. Senator L. Heisler
Ball. chairman of the District OF
Columbia Committee. stated yes
terday. Whether 1t will be taken
up tomorrow when the committee
e-s. he would not state definitely
because Of some incompleted de-
tails, but he gave every assurance
that it would become a law before
adjournment Of this session.
While Senator Ball declined to
give details of the plan which he
will submit for merging the trac-
tion interests in Washington to
bring about reduced fares and bet
ter service. he indicated that it was
more comprehensive than any yet
suggested and would not leave a
loophole so that the companies
could avoid going into a union OF
their interests.
Has House Bill Features.
The bill. he indicated. embodies
many of the features of the measure
already before the House to force
a merger by Imposing a tax OF so
per cent on all net revenue above
per cent return on the fair val
III lion on the properties. But II
does not depend on this alone. The
tax feature. he pointed out, would
be in the nature of an amendment
to a general bill making a merger
possible and outlining the details
Of the transaction. In other words.
Congress will first enact legislation
of some kind, possibly something
similar to the Woods bill, and amend
the main measure. The taxing fea-
ture will be an auxiliary. or stimu-
LIANT to the merger. rather than the
main reason for the merger, as was
suggested last week.
At the request Of Senator Ball the
District Public Utilities Commission
submitted to him yesterday COM
Drchcnsive statistics on the earn
inEs Of all of tho properties of the
traction lines within the District.
These figures include not only the
Potomac Electric Power Company.
but the subsidiary lines of the
Washington Railway and Electric
Company and the parent company
itself. The net earnings in excess
of per cent on the fair valuation
of these companies will be taxed, as
Dy
Chairman Keller OF the Public Util-
titles Commission. But in addition the
net earnings in excess of 6 per cent
OF a fair valuation of the Potomac
Electric Power Company will be
taxed.
Present Tax Negligible.
Under present operating costs the
tax on the net revenue of the
NJ TATN II a.
Company above 6 per cent would
prove negligible. The company, ac-
cording to its figures. has been able
TO operate only by using the sur
plus earnings of the power COM
pany. which it owns. Deprived of
this source OF sustenance the Wash
ington Railway and Electric Com
pany would be forced to such ex-
tremities that il might be placed in
the position of making concessions
to the Capital Traction Company to
bring about a merger The Capital
Traction Company would. in the
opinion of Senator Ball. be just as
willing. as under the terms of the
tentative legislation it would only
be earning s per cent
Another feature of the plan which
Senator Ball stated he had not had
sufficient time to study is whether
to make the tax feature of the bill
operative July l. of this year. or
with the beginning of 1928. He said
that he would have to confer with
his colleagues and District officials
both as to this feature and as to
the general outline of his measure
before making a definite announce
ment and that every detail which
he now has in mind is subject to re-
vision in case it is found to be i'm
practical
Want Line Extended.
Arguments fayorIng extension of
the Lincoln Park line OF the Wash
ington Railway and Electric Com
pany from Fifteenth and East
Capitol streets TO the new Eastern
High School. between Seventeenth
and Eighteenth streets. were heard
yesterday by the Public Utilities
Commission. Evan c. Tucker, presi-
-dent of the Northeast Citizens AS
ISOLATION. pointed out the need for
car service TO meet transportation
problems of the school.
Proposals to extend the line as
far as Nineteenth street, to reach
the new GaIlinger Hospital. the
-.---Jct jail and the Congressional
Cemetery were opposed by William
F. Ham. president OF the Washing
ton Railway and Electric Company.
He sought to prove that with the
present rate schedule the company
could not afford the extension. He
stated that II would take sS3.979 to
build as far Nas Eighteenth street
and s102.112 to Nineteenth street.
This money plus an annual operat-
ing expense OF s2o.5s2 would have
to be borrowed at an interest rate
of 8 per cent, he said.
Replying to Hams statement
that the company was not making
enough at the present rates, WILL
Jam Mex. Clayton. representing the
Federation of Citizens Associations
suggested that Ham had recourse
in the courts
On being questioned by Commits
sioner Charles Keller. Ham stated
that he considered an extension
connecting the Georgia avenue and
Eleventh street lines as more I'm
perative at this time.
.Three for Twenty
An appeal from the Federation of
Citizens Associations requesting the
Public Utilities Commission to
change the present six for 40 cents