Evening star., 1950-01-04
Transit Subsidy
Plan Gets Cold
Eye in Congress
Nicely and Mcmillan
Question Worth of
MerriII's Suggestion

SoilS4 COD 1OOktQ WIFI q DUBIOUS
eye today on the suggestion that
the District Government should
subsidize the Capital Transit Co.
E. D. Merrill, president Of the
company, made the suggestion
yesterday, explaining that a sub
sidy might mean the company
could provide better service at the
present fare or the same service
at reduced fare.
But the reaction on Capitol Hill
was this:
Chairman Nicely of the Senate
District Committee-"I will say
right now would not be in favor
OF having the District bail out the
streetcar company, at least until
had plenty of evidence that it
was not only necessary but in the
interest OF the people and the tax
payers"
Chairman Mcmillan of the
House District Committee-"I
would have to think that over.
I don't know if that would be the
thing to do or not"
Fowler Won't Comment.
Walter L. Fowler, District budget
officer, said no proposal to sub
sidize the transit company has
come before the Commissioners and
that he had no comment.
MIR. Merrill's suggestion was
made at a luncheon yesterday of
the District Advisory Board of the
American Automobile Association.
He said that. of course, such q
proposal as subsidy would re-
quire congressional action. In any
event. he added. the company will
have to go ahead with its plans
to ask for a higher fare.
He called attention to the va
rious taxes the company pays.
Its last annual report listed
taxes for 1948 totaling $2,2o7,611.
Breakdown on Taxes.
In response to an inquiry, the
company later said taxes for the
first II months of 1949 have to-
tailed $2,126,743. It broke them
down this way:
To the District: Gasoline tax.
$353,S48; bus tax at four-f1fths of
a cent per mile, $146,263; motor
vehicle license tax, $14,314; 3 per
cent tax on the gross business of
streetcars, $434,308; real estate
tax, $111,789; unemployment COM
pensation tax, $13, 3,726: income tax,
$68.962; miscellaneous, $5,016; to-
tai, $1,148,226.
To Maryland and Virginia: To-
tai, $42,962. Most Of this con-
sists of the bus license tax, un-
employment compensation tax
and real estate and other operat-
ing property taxes in Maryland.
Virginia collects a small sum be-
cause of the operation of char
tered buses by the company in
that State.
To the Federal Government: In
come and excise taxes, $757,247:
social security taxes, $178, ,308: to-
tai $s35,555.
Projects Add to Costs.
The company said also that the
requirement that it maintain the
street paving in the area of its
tracks costs about $1,000 a
year. Special projects also add to
costs, according to the company,
citing the Dupont Circle underpass
which it said cost the company
almost $500,000.
The company said Federal gas
. oline taxes are not computed as
taxes but are figured in the price
OF gasoline which is an operating
expense.
Mr.. Merrill brought up the sub
ject OF a subsidy at yesterdays
meeting, after commenting on the
large amounts spent for parking
facilities for motorists and on
highway construction. =
The city's parking problems also
were discussed by Stedman T.
Hitchcock, assistant chief of the
Highway Transport Research
branch of the Bureau of Public