Evening star., 1924-04-15

assuring the better service which
should accompany increased fare.
at less than cost and In increasing
numbers during wartime Is largely
responsible for the breaking down of
the road, should they not reasonably
respond to the demand of the situa-
ton by paying. through transfer
over the urban fiat rate for their
transportation? And should not the
long haul suburbanites, recognizing
that they are being carried at loss,
order to build up the greater Wash
lngton, cheerfully contribute, as tax
payers, to help meet this loss and
become the earnest advocates of some
system OF tax readjustment to this
the District Commissioners?
Obligation Of Taxpnyins Community.
What Is the obligation Of the tax
payerMthe i general public-the mu-
iph and hlestrie 6e bH RalTay
rate suburban fares has been an i'm
portant factor in city development,
TieneVing urban congestion. minimiz-
ing SUM development, this cheap
rapid transit enabling thousands to
own homes and raise families in
wholesome, healthful surroundings.
rms development has also added mill
mons TO the city's taxable property
and has thus increased largely the
city'S tax revenues
Inc national government, which is
also the local government and the
capital community, having thus bene-
nted by the suburban upbuilding and
TAX revenue increasing services of the
company. rendered at a loss SO far as
suburban service is concerned and
having, by indirectly increasing wage
scales and by cutting down electric
light profits. rendered the company
unable to bear the whole burden nf
this Improbable transportation, and
having by the Importation of more
than hundred thousand war workers
vastly increased during war time the
number of these long-haul, unproft-
able passengers-are under an eoui-
table obligation to note these serv-
ices OF the company in the community
interest in the past, and, so far as It
can be done without injury to Others,
to correct the obvious injustices of
the situation.
The community. the local-national
government, can recognize and meet
It's equitable obligation by wise and
conslderate action in the Public Util-
tiles Commission and in Congress
Since II has brought the company into
financial straits by cutting down its
electric light profits, byaincreas it's
labor wage expenses and by swelling
enormously the number of long-haul
passengers, which it carries at loss,
the government has already recog-
nized that il should adjust railroad
rates in such manner as. without in
jury to the public, to offset eff ectively
the losses which it has imposed, and
1t should also SO readjust the taxation
or the company as to accomplish the
same purpose. 1t is unwise to refuse
to recognize that the Capital Traction
Company, with it's maximum profita-
bic short-haul traffic and its minimu IN
long-haul Improbable traffic, and the
Washington Railway and Electric
Company. with it's maximum unprofit-
able long-haul and its\minimum prof
liable short-haul traffic, are in differ
ent classes, and cannot be handled on
the basis of uniform fiat rate with
Uniform taxation of gross earnings.
A change in tax system from a tax
on gross earnings to one on net earn
ingS would substitute a more scien-
tific and equitable scheme of taxa
tion and would tend to expedite just
merger.
Obviously there is something. wrong
with a tnx measured solely by gross
income which ignores the outlay that
represents the cost of securing Jhnt
income. Such n tnx may, ms In the
present instance, work out the pre-
pOsterous result Of imposing q heav-
Ter burden upon n business operated
Mt a loss than upon one earning large
excess profits.
Shall we not all of US. including
those who have not been special bene-
ficiaries of past conditions, approach
this grave community problem in a
helpful, cooperative spirit?
Government to Solve Problem.
The solution of the troublesome
street railway problem rests ulti-
mately upon the Public Utilities COM
mission and Congress, representing
all of US. BY action indirectly affect
ing wages and concerning directly
working conditions and services to
be rendered, they have determined in
effect the roads money outgo. There
is no escape in equity from a CORE
spending obligation in respect to the