Evening star., 1932-05-25
BUREAU ANALYZES
PUBLIC UTILITIES
TAXATION FIGURES
Efficiency Experts Show
Lower Rates Paid Here
Than Elsewhere.
DISTRICT COMMITTEE
TO GET FURTHER REPORT
Summary Is Given of Statistics to
Prove Favored Position of
Washington Companies.

In arriving at the conclusion con-
tanned in its report to the Senate Dis
trict Committee yesterday that local
public utilities are in a favored posi-
ton as compared with representative
companies elsewhere from the stand
point of taxation, the Bureau of Eff
cheney analyzed separately the taxes
paid locally and in certain other cities
by each group of public service cor
porations.
While the bureau intends to submit
a separate report later to Chairman
Capper on utility taxation, it made
available in connection with its study
OF the local income tax bill the COM
parative tables of utility taxation in
various communities.
Alter presenting detailed figures for
each class Of utility, the bureau sum-
married its statistics regarding all of
them as follows:
ITO tax public utilities IN the District
OF Columbia at the average rates in
other localities as shown in the fore
going tables, would produce additional
revenue of S941,836"
Method of Comparison.
In comparing utility taxes the bureau
took the percentage of taxes paid, ex-
elusive of Federal income tax, to gross
operating revenues. BY this method,
the report explained, obstacles of di-
vergent bases and rates can be over
come"
The bureau said the taxes of the
Chesapeake & Potomac Telephone Co.
for 1880 amounted to 474 per cent of
Its operating revenues. against an aver
age OF GIT per cent of the other repre-
sentative telephone companies used in
the comparison The buerau listed "a
other companies
The Chesapeake g. Potomac Tele.
phone Co. taxes for 1880 amounted to
s409,8 ,867," the report continued AT
the average rate, they would have been
s585.898. an increase of S176,O3l."
The basis of telephone taxation here
is per cent on gross earnings, plus the
real estate tax
The bureau reported the combined
taxes of the Washington e. Georgetown
Gas Light Co. as s274,885. or an aver
age of 4.16 per cent of the combined
operating revenues. For nine companies
elsewhere. the bureau said. the average
taxes for 1880 were ITO per cent of the
operating revenues.
Although the number of companies
is very limited. the average obtained
is in line with that reported in Moody's
Manual on Public Utilities for 1881
The total operating revenues of all
manufactured gas companies is there
reported at s532,872. 900, with taxes of
$50 307 900. Deductins estimated Fed
eral income taxes gives s37,856.sl8 for
State and local taxes. This is ITO per
cent OF operating revenues. IF the To-
cal gas companies were assessed at the
average rates shown by the table. they
would pay a combined total tax of
s507.700. an increase of S233.815."
The basis of gas company taxation
here IS S per cent of gross earnings
Operating revenue less cost of gas man.
ufactured), plus the real estate tax.
Power Company Figures.
Electric light and power companies
are taxed here on the basis of per
cent on gross receipts, plus the real
estate tax The bureau points out that
in many places electric light and gas
companies are operated together and
published reports combine the two ac-
tivities. The bureau secured figures on
II companies, on which the average tax
paid amounted to 8.18 per cent of oper-
dtllS IeNeIucS. TOI lllt IOlOIlldC cicC
trio Power Co.. the bureaus table listed
the taxes as AIT per cent.
The taxes paid by the Potomac Elec-
trio Power Co for 1881 amounted to
S453278. Based on the average shown
in the table. they would have been
$685. 142, or an increase Of s434,864."
Street railway companies are taxed
here at per cent on gross receipts, plus
the real estate tax The bureau points
out local companies also are charged
with other items for traffic policemen
and paving costs, which it says it will
discuss in its next report.
During the calendar year 1880, the
principal electric railways in the United
States paid taxes (other than Federal
income taxes) amounting to 6.26 OF
their operating revenues. In the Dis
trict, the ratios of the Capital Traction
Co. and the Washington Railway &
Electric Co. were 500 and 5.32 per cent,
respectively, of their operating revenues.
The ratio of the combined totals for the
two companies was 5.23 per cent.
Together they paid total of $490, 1894.
Had they been assessed at the average
rate for the United States their taxes
would have been S588, ,120. representing
an increase of $97, ,126, or approximately
20 per cent. The charges for traffic
policemen and paving costs have not
been included in this computation"