Evening star., 1922-03-21

urged the passage of the bill permitting
the merger. :.
He pointed out that the Public Utin-
ties Commission, ever since 1914. has
neId that the Washington Railway and
Electric Company was entitled to
higher rate of return on its valuation
than it has received. The commission.
he said. had taken the view there should
gress. He said that his company
earned 31-3 per cent, or s660,000, less
than it should on the fair valuation
fixed by the commission.
He criticised the per cent tax now
levied on the franchises of the street
are today his company gets no return
on it's franchise, but what 1t does get
is on it's physical valuation. The
problem Of the company, he said, was
to give as good service as its COM
petitor with a return Of only 1-3 per
cent: He said that any idea Of i'm
mediate large savings through a
merger was a mistake, however.
Loss for Twelve Years.
Charles Selden. jr.. representing the
Washington and Maryland railroad,
said that for ten or twelve years that
road had operated at a loss. but was
serving community that needed the
service. He referred to the company
and to the East Washington Heights
Company as the cinderella compa-
nies," which for years had been sit
ting in the ashes. The Washington
and Maryland, he said, operated un-
der a contract with the Capital Trac-
tion Company last year, had for the
first time made any money. If there
is to be a merger of the street rail-
way. companies, he said. the Wash
ington and Maryland and the East
Washington Heights Company should
be included and should be given fair
treatment in the terms of the merger.
Mr.. Hanna and Mr.. Ham both sag-
gested that the bill should be amend
ed so that there would be no difficulty
about q merger of the Washington
Railway and Electric Company and
the Capital Traction Company If they
were satisfied with the terms of a
proposed merger, and so that they
could not be held up because some OF
the other companies did not agree.
Charles ]. Columbus, secretary Of
Joint committee of civic and trade
organizations. urged upon the COM
mittee the desirability of a merger of
the street car lines. Adequate trans
portation, he said, was an essential
A. E. Seymour, secretary of the Cham
Der of Commerce, also put in a plea
for a merger.
Col. Keller declared that the Public
Utilities Commission. in recommend
ing the tax on operating income, had
not been actuated by hostility to the
Capital Traction Company. The COM
mission, he said. was anxious always
to dispense even-handed justice to the
companies and to the public.
Secretary Hughes Cited.
Col. Keller read from an opinion
handed down by Secretary Of State
Hughes while he was a member of
the Supreme Court, declaring that
valuation of public utilities on hypo-
thetical values due to abnormal con-
ditions was unfair. Col. Keller said
that for the same reason the valua-
ton Of the public utilities fixed by
the Public Utilities Commission as of
1914 was the only fair way. and
charged that the companies were at
tempting to take advantage Of the
greatest calamity of the ages" the
war, to initiate their valuations.
Col. Keller denied there was any at
tempt in the tax feature of the bill to
discriminate against the Capital Trac-
ton Company. He said the commits.
sion had found it impossible to pre-
vent one street railway company, the
Capital Traction Company, from max
ing large returns while the other
company was making. little. though
there was not much difference in the
character of the service given by the
two companies.
1.-THE excess profits Of the Capital
Traction Company, made practically
under duyess," said Col. Keller,
should be taken away"
Col. Keller insisted that while the
merger may NOT result in any inn
mediate. reduction Of fares it will
benefit the public and that lower fares
will come yet. .,.--e
Evan H. Tucker, president Of the
Northeast Washington Citizens As
ISOLATION, urged the passage of q
merger bill. but opposed the imposi-
tion of the excess profits :ax' pro-
posed