The Washington herald., 1922-03-02
Focht Introduces Bill
Proposing Plan of
Col. Keller.
SPONSORS PLEDGE
STRONG CAMPAIGN
Urges Levy of so Per Cent
On Company's Earn
ings Above 6 Per Cent.

Inc bistIlCl ScCOIu dllSAnPh IN
two years to bring about a merger
of the street railways through
remedial tax legislation will be
pushed before Congress at the ear
liest possible moment, Representa-
tive Benjamin K. Focht, chairman
chairman of the Public Utility Com
promised yesterday.
Engineer Commissioner Keller.
chairman Of the public utility com
mission proposed a bill introduced
in the House by Representative
Focht to make possible a union Of
the two street railway companies
by pairing their earnings to an
equal level through taxation
Commissioner Keller. speaking for
the Public Utilities Commission.
would have the net earnings OF
the two companies over a six per
cent return on the fair valuation
OF their properties taxed 50 per
cent. thus bringing the net earn
ings of the two companies almost
to a common basis which would
permit a merger.
Foeht Halls Proposals.
The proposal OF Commissioners
Keller. embodied in the bill intro
duced by Representative Focht, Is
merely q renewal Of the stand
taken by the commission two years
ago at which time a similar bill
was introduced in the House ana
long considered by the House Dis
trict Committee.
This bill was introduced in jan
uary. 1920. Since twelve other bills
aiming at a merger and seeking
remedial legislation which would
permit a merger have been INTRO
duced in the two branches of Con-
Sress. None have passed.
Chairman Focht of the House
District Committee enthusiastically
hailed receipt Of the bill as giving
!, the committee another opportunity
to consider the bill of this nature
introduced two years ago ...
Says Merger Must Come.
"A merger of these two companies
must come" Representative Focht
declared. This bill will tend to
draw the two companies together.
and a merger is then within the
realm of possibility, Congress will
keep after District. affairs until this
merger is gained" he insisted.
By this act the Public Utilities
Commission maintains the attitude
il has assumed during the past two
years. 1t throws directly up to Con-
gress the problem Of merging the
Capital Traction Company and the
Washington Railway and Electric
Company.
A merger only will permit general
reductions in fare for the street
~. afaa cd
has announced No hopes of seps
rate rates for the two companies. in
spite of the admitted high earnings
Of the Capital Traction Company.
will be permitted by the Commits
sion, IL has Indicated.
Keller Explains Stand.
Early action by Congress is prom
ssed on the bill. Should it be passed.
the Commission would be in a posi-
tion to take immediate action rela-
tive to a reduction in rates pur-
suant upon the proposed merger OF
the companies through the legisla-
tive action. In their order Monday
the Commission made the present
rates of six tokens for 40 cents good
for an indefinite period. reserving
power to order a hearing at any
time.
In his letter to Representative
Focht accompanyin the bill, Com
missioner Keller wrote:
until a merger can be brought
about, there appears to be no per-
manent solution of the present diff
ficIrfty. but the Commission believes
that the excessive amounts now
paid to the Capital Traction Com
pany can be recovered to the public
through the imposition Of a direc,
tax upon those earnings, to be levied
until the companies are finally
brought together into a unified
street railway corporation.
Gives Draft of Bill.
The Commission. therefore, trans
with the recommendation that its
early enactment be urged upon
Congress"
The bill provides that beginning
July 1 this year each street railway
corporation operating in the Dis
trict shall pay annually In lieu Of
all other taxes on personal prop
erty and franchises a tax based on
its net operating income, as fol-
lows: Upon operating incomes eacn
year In exceSs Of per cent of the
fair value of the property of each
company used and useful for the
public service within the District,
as sscertained by the Public Util-
tiles Commission, a tax of SO per
cent OF such excess This tax would
be based on the operations of the
calendar year, except for the pres
ent year. when 1t would be based
upon the last six calendar months.
h<n 60
Pf the two companies. and conse-
quent reduction in fares now in the
hands Of Congress. IT is within the
power Of the Commission to make
new rates effective at any time
Should COnEreSa head this aacnnh