The Washington times., 1923-01-28
M'KELLAR ASSA|[S
CAR MERCER PLAN
Calls Consolidation Talk Mere
Excuse to Hide Injustice
OF Fares.
POOR VICTIMS OF RICH
Senators Praised for Fight to
Restore Nickel Rate on
Traction Lines. e..
POOR VICTIMS OF RICH

Restoration Of a five-cent street
car fare to the people of Washing
ton does not have to await a merger
Of the two leading companies but
should be brought about imme.
diately by the Public Utilities Com.
mission, Senator Kenneth Nickel
lar Of Tennessee declared yesterday
Continuing his fight against the
prevailing eight-cent fare, Senator
Mcclellan Nasserted that the rate
could be lowered to the maximum
charge allowed by the company
charters and still allow an equitable
dividend to be made by the rail
ways.
FARES OUTRAGEOUS.
There is no excuse for continu.
ing the present outrageous fares,
he said. 1.-THE Public Utilities Com
mission has shown it's colors to be
identical with the street railways.
1t is time for some other agencies,
more interested in the welfare Of
the people Of Washington, to act.
"The fight should. not be stopped
until it has accomplished the fol
lowing: A basic fare OF five cents
six tokens for a quarter; universal
transfers"
Senator Mcclellan declared that
the possibility Of a merger OF the
street railway companies Is So re-
mote that it cannot be looked to
for immediate relief by the people.
This is realized by railway officials
as we'll as by those who have
studied the organization Of the com
panies, he said.
AS a means of postponing a
change in prevailing rates, he said,
the talk of a merger Is being pro-
NOTED by the railways. The impress
sion is being created that street
car fares cannot possibly be lower
ed until some combination is eff.
fected. This view has become SO
widespread, it was asserted, that
the street railway problem has been
almost abandoned as hopeless. And
as a result, the companies have
continued to reap enormous divl-
dends at the expense Of the Dis
trict residents.
1.-THE manipulation of. stock by
these companies Is nothing less than
rotten" Senator McKeller declared
at is not only a disgrace that such
things can be perpetrated supon the
people, but it is an outrage that
these companies are allowed to
continue draining the people OF
Washington. H. r&
POOR ARE TAXED. a.~e4"
zone of the worst things about
this situation is that these enor.
nous corporations ,4svy their tax
where it is least 'tolerab1e, namely,
upon the middle classes and the
poor. 1t is the people who cannot
afford automobiles" and who must
use the street cars who must pay
dividends on watered stock. There
is a small group of influential, rich
men in Washington who hold the
stock in these companies. The
money they get in dividends comes
from people who cannot afford to
be taxed unjustly."
Tracing the history of the crea-
ton of the Public Utilities Commits.
sion, Senator Mcclellan pointed out
that the street car companies fought
such a move when it was started.
They knew and everybody knew
that the purpose of giving the com
mission power to alter rates was to
reduce street car fares to 3 cents.
It had been done in Cleveland and
Detroit and in several other cities,
and that waA the intention of Con.
gress in Washington" Mcclellan
said
But instead Of reducing the rates
he declared, thea commissiop from
tool" Of the powerful men who own
stock in the railway companies.
STOCK KITED, CHARGES.
f. Referring to the Washington Pail
way and Electric Company, Sen
ator Mcclellan declared that it was
common knowledge that this cor
poration had "kited it's stock about
This has been possible. he said
by taking in other companies and
effecting several consultations.
"This company has a capital
stock of $15,O00,O00 consisting OF
So, 500, 900 of preferred stock a1t
Sc, SOC, 900 of common stock" Sen
ator Mcclellan said. II am reliably
informed, and I am sure that it has
been public scandal for years
that all of this common stock Is
watered, and that it has beer
issued without any capital being
invested in it. But instead OF
SIS 900 900, the company now claims
that 1t has assets worth 100000, 900
and wants to have the people OF
Washington pay dividends on that.
Senator Mcclellan said yesterday
that since his opening attack or
high fares, his office has beer
swamped with letters and calls
from residents Of the District ex
pressing their sympathy with his
efforts.