The Washington herald., 1922-03-04
House Committee Chair
man Expects Action at
This Session.
WOULD PUT TAX ON
TRACTION PROFITS
Believes Committee WIN
Reach Agreement on
Some Plan.

Despairing of any other method
Of remedying washington's traction
situation, Congress will tosss a
merger OF the two lines by IegisIs-
tion at this session. Representative
BENJAMIN X. Focht, Of the House
District Committee. declared yester-
day.
The street railway situation here
is more a circumstances than a
crime, but TO the average patron Of
the lines Il appears criminal At
any rate Congress is tired Of fool
ing with the matter any longer and
will dispose Of fl at this session.
Mr.. Focht said.
FinAs Local Interests split.
There is no other way OF solving
the problem except thPugh Con-
gressional action. So far as the
citizens and other associations are
concerned We seldom find them in
accord. One body is interested in
one plan and one in another. Those
interests which are purely local
seem unable to reach an agree
ment. We hnd almost as many
advocates for one plan as for an
other, except possibly that a ma
jority favors a merger.
Congress. too. fayoTs a merger
and will force one before this SEES
sion adjourns- Every member real
izes that the situation f. an in
tolerable one. that II cannot be ad-
justed by any other body. We have
had countless hearing on the ques-
tion. All OF us are as familiar with
u as any body Of citizens can be.
We nave no interests IN washing
80 - :, SIs ~
~, -.,ht,s :. - - .,' III
.
VI 'e
PeoP
Fsvsrs Taxing Excess rreats.
Mr.. Focht stated that he favored
the plan submitted TO the District
Committe to force a merger by i'm
posing a tax on the excess profts
above a 6 per cent return, and said
that both the Senate and the House
committees would be urged 10
adont the nroposaI when they take
I'M the traction situation, probably
next wednesdav
u. Indicated bouever thaf
rsI,ber hirn.eIF nor o,ber rnerhers
90 ~. ,oror,I,tos xo,,IS L., faiIrrs
=. -. -. - -. ais, .,snd
90. uP SNt ~. ,,I,s,s-.,s
.h-s,,,ia :, -
cs ~. =. .n.,iS - -
s,n.S,I. 20 a.. -
sTt :, ohvions tha, the arst stem
should he a merger" he said. The
neonle are Interested in this though
only 20 the extent that 10 NAV bring
ahout lower fares
m, -. ,.xs ..
hh e.es
II the very simple plan sug-
Eested by the Public Utilities Com
mission will bring about the desired
result as / think IL will. L 90 not
see any reason why we should not
proceed TO its adoption as early as
possible"
The bill referred TO. providing for
a>5O per cent tax on the net reveEue
above 6 per cent on the fair valua-
ton. already has been introduced.
II was sponsored by Senator Bail
and Representative Focht. chairmen
OF the District committees in the
respective branches of Congress.
The measure has not met with a
favorable reception in some quar-
ters, however. and Il was regarded
as not unlikely II would be
amended. or substituted. Senator
King OF Ihe Dlstrlct S~oninle.ee. ~
tnlnks u is aitOsether Ihaoe1oa'e
ana lauIy ana ss oh
campaign against H.
wants Mandatory Merger.
Merely providing a tax so as to
make the earnings of the two COM
panIes nearly eoual will not neces-
sariIy force a merger. he pointed
out. He also suggested that Il was
possible for the companies 70 so
reduce their receipts as to avoid
paying a tax altogether. Senator
King fayors legislation that would
make a merger mandatory,
Representative Woods, Of yir-
gipia, whose bill authorizing the
merger of the two lines has been re-
parted fayorably TO the House.-also
is opposed to the taxation plan and
declared that he would force action
on his measure at the first opDor-
tunity,
But I'm spite Of differences Of
opinion as 70 the most feasible plan
of action, there seemed 10 be an
agreement that Congress alone is in
position to deal with the situs-