The Washington times., 1922-09-12
Car Merger
Legisld
By BILL PRICE,


i just two teeth in it. Before
that time it had no more bite in it
than would newborn babe.
The amendment to the bill insist
ed upon by Senator JONES of
Washington provides that net prof
its accumulating beyond the pay
ment of 6 per cent return upon
fair valuation of street car proper
ties shall pay a tax of SO per cent
to the District, and that the tax
will be Is per cent upon net earn
ings in excess of 7 per cent upon
fair valuation. This is a substitute
for the tax now paid upon gross
earnings.
The effect of that amendment, if
it should pass both House and Sen
ate, would be to take away from
the Capital Traction many thou
sands Of dollars it collects from the
people of the District above a fair
return upon fair valuation of its
q properties, as found by the Public
Utilities Commission. If the Capital
Traction should have its huge net
profits trimmed by excess profits
taxes it might be willing to join in
merger with the Washington
Railway and Electric and the Poto-
mac Electric Power Company.
So long as it can pull down big
chunks of money paid in by car
riders, to which it is not entitled,
but cannot we'll be denied under
existing conditions, it will not show
the slightest concern in a merger
of street car properties. The excess
profits tax is the one thing that
may rob the company of the gold
mine'it was made a present of.
1t should be borne in mind,
though, that even including the
punch" just put in the bill, the
Senate legislation is a voluntary
merger affair. There is not a COM
pulsory feature about it. The
financial interests involved can, and
probably will, laugh at it, unless
events bring favorable conditions
under which they would find it
beneficial to consolidate.
There are no present indications
that either Sn: of the railway com
panies wishes to merge-certainly
not on terms that will suit the
other. The Washington Railway
and Electric Company will be
tickled to death to have its railway
properties thrown in with the Po-
tomac Electric Light Company as
one property. Through that proc
ess, if they must be dealt with as
Just one company by the Public ,,
Utilities Commission, the financial
weaknesses of its street railway
lines may be strengthened by
higher rates upon electric light |
users.
So far as the car riding public is
concerned, the proposed merger
legislation does not seem to indi-
cate that the public has any in
terests at all beyond paying street
car fares sufficient to keep good
dividends going. The legislation
does not fail to weigh the mighty
interests of the dollars that are in
vested, however.
Here is a complicated, unpar-
alleled street car situation which has
existed for years. 1t could have
been cured long ago b. municipal
ownership or operation under the
Cleveland plan, but Congress stands
frightened every time municipal
ownership shows it's head. 1t is
not the least bit frightened when
thousands of car riders raise their
heads and demand changes that
will procure for them lower car
fares and better car service.
There is seemingly little prospect
of early relief for the car-riding
public of Washington. In the
course of years the inequities may
disappear and the public attain
the fair treatment il has so lopg