The Washington herald., 1922-03-05
Federation Calls Scheme
"Vicious," and Urges
Congress to Act.
DEMANDS 3 TOKENS
FOR TWENTY CENTS
Immediate Union of Car
Companies Insisted on
In Resolution.

The Federation of Citizens As
sociations. at its meeting last night.
solidly opposed the plan to force a
merger of the District traction
lines by the imposition Of a tax on
excess profits and renewed its de-
mand for direct legislation by Con-
gress demanding merger and
specifying the details.
The tax legislation as sponsored
by the District government through
the Public Utilities Commission and
fathcred in Congress by the chair
men of the District committees in
the Senate and House was branded
by the federation. in a resolution as
being vicious in principle and
abortive in practice"
Clayton Fights Measure.
There was little debate on the
question after William Mex. Clay
ton, chairman of the public utilities
committee. explained the reasons of
the committee in submitting the
resolution for adoption. He pointed
out that the plan to bring about a
merger by imposing a so per cent
tax on the net revenue above a 6
per cent return on the fair valua-
tton of the respective companies
would not necessarily compel a
merger. What it would do. he de-
clared. would be to impose tax
on the car riders.
1T would be robbing the poor
to pay the rich" he said. 1T
would be taking money away from
the people who ride the street cars
to pave the roads for the people
who drive automobiles"
VIII Go Before Legislators.
But possibly the worst feature
of the situation is this. II the Dis
trict government needed revenue q
am not, of course, saying il would
be done) all that would be neces-
sary to raise 1t would be to in
crease the fares OF the traction
companies, which can BE done
easily through the Public Utilities
Commission"
Mr.. Clayton declared that he
would go before the District COM
| mittees of Congress this week II
the question of a merger of the
traction companies is under discus
sion and urge the adoption Of the
plan as outlined by the committed
after a careful study of the trac-
ton situation.
Two plans will be urged, he said
One is that Congress force a merger
by a repeal of the present charters
and the grant of new ones condi-
toned uopn a merger. or that Con-
gress resume its right to conduct
hearings and fix rates and in this
way clarity the District traction
situation.
Will Fight New Rate.
In this plan he will be opposed
by the chairmen of the District
committees. who again yesterday
| reiterated their intention to take
the traction problem into their own
hands and settle II once and for
all. regardless of any plan brought
in from the outside The Citizens
Federation will not be without
strong support. as quite a few OF
the members of the Congress COM
mittees already have declared them
selves opposed to the plan to COAX
a merger by tax legislation.
But transcending in immediate
Importance the discussion of the
merger was the decision Of the fed
Grafton to make a fight on the new
tariff for the sale of tokens.
resolution was introduced calling
upon the utilities commission to re-
form its ruling and require the
traction companies to sell three
tokens for 20 cents. instead of six
for 40 cents. .
Aimed mt Poorer Residents.
r. NJ. McMackin, delegate of the
Central Citizens Association, de-
cIared that the ruling was aimed
directly at the poorer residents.
"To my personal knowledge" he
said, There are any number of
people who can't get together 40
cents every day for several men,
bers of the family and as a result
they have to pay cash fares, cents
for the poor people to ride on the
car, and 2-3 cents for those who
could better afford the s. 1t is
nothing more than a money-mak-
ing scheme"
Mr.. Clayton explained that with
each increase in the token tariff,
the number of cash fares increased,
when the tokens were four for so
cents only IL per cent of the pas
advanced to five for 35 cents the
percentage paying cash fares in
creased to II and would probably
be materially higher with the new
rate. He also pointed out that the
companies believed that when a
patron bought tokens there was
always the temptation to use them
in going short distances and that
the revenues would be increased in
this way. He said that this was
the reason the companies do not
look with favor on three tokens
for 20 cents instead of six for 40
cents. although the rate per token
is Identical.
May Appeal to Court.
An effort will be made first to
have the Public Utilities Commits
sion make a decision ordering the
three tokens for 20 cents, but IL this
fails, he will take the matter into
court. He explained that he would
be reluctant to do so. however, as
there would be considerable delay.
The proposal to have a commits
sion separate from the personnel
of the District Commission handle
public utilities was adopted with
only a few members opposing 1t.
These, it was said, misunderstood
the purport of the resolution, be-
lieving 1t be a reflection on the
Commission. 1t was explained that