Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-08-27
MANIFEST THEIR INTEREST
PEOPLE WHO DISCUSS AFFAIRS OF
THE STREET RAILWAYS.
Those Who Ride and Those Who Hold
the Securities-Directors and
Stockholders.

At this season of the year, when street
car riding for pleasure is not only fash
ion but also largely a. necessity, great
many people take an interest in street rail-
roads and their MANAGEMENT. Like all
other semi-public concerns. the affairs OF
the average street company are freely
discussed, especially in respect to the OPP
Grafton of the cars, the manners OF the
conductors, Overcrowding and other fea-
lures which affect the comfort Of the pub
lie and strike its attention. This is a COM
mon subject of conversation among prac-
tically all grades of passengers during the
long rides in the cars these summer even
ings, and views as to possible improve
ments, or, more rarely still, as to actual
improvements, are discussed pro and con,
and subsequently. no doubt, a due proper
ton found their way into the columns Of
the daily press under the signature Of "a
Patron of the Road" or Another Kicker
Railroad officials also have rich and
varied experience in the matter of las pub
lie interest in the welfare of the companies.
Their daily mail contains letters from
patrons of the lines. They are also honored
with personal calls. and if railroad Off
cial gets an idea that the affairs OF the
company are of no concern to the public
he is apt to find that quite large number
of citizens disagree with him.
Holders of Securities.
There is another class that the railroad
official has to do with, and that Is the hold
ers of the securities. More people, 1t Is
said, feel that they own the road and every
body connected with it. That is, they do
until after they have made visit to head
quarters. and then. perhaps, they discover
that there is lack of harmony in this re-
spect between themselves and their supposed
vassals AS a rule the railroad officials are
obliged to express gently and firmly to this
latter class that they are carrying out the
orders OF the directors. At the same time
the large Stockholders, or bondholders,
either for that matter, who are, as rule,
represented on the board of directors. are
ap: to receive respectful attention. Some
times these gentlemen became convinced
that the earning capacity of the company
would be greatly increased If their IDEAS
were carried out, and occasionally they be-
come so much aroused as to actually give
orders 10 employees
When there are several of these amateur
railroad managers the affairs of the road
apt tC get trfie mixed and confused,
and the employees don't know what to do or
whom to obey. And then it is found neces-
sary To go back to the old and well-tried
system of having some one man rs re-
SponSible head.
Both Classes Interested.
Both stockholders and the public are in
terested in the earnings of railroad COM
pany-for different reasons, of course, but
none the less. the interest of both parties is
genuine enough. In this city all the street
railroad lines are operated by two compa-
MES. and their financial statements show
that II takes little more than one-half of
the ticket given by passenger for ride
to pay for the cost of the ride. What are
known as the operating EXPENSES amount
In the case of the companies in this city, to
between 20 and 60 per cent Of the gross re-
Ceipts.
What are included in the term "operat ting
expenses are wages. supplying the cur
rent or motive power and the ordinary
wear and tear. 1t excludes permanent i'm
proVementS and assumes that the plant is
ready for operation and the operating ex-
penses represent the cost Of running the
cars and maintaining the plant in work
able condition. After the operating ex-
pcnses are met then come what are known
as fixed charges, which are the interest on
the bonds and the dividend on the stock.
When the gross receipts are more than suf-
ficient to meet the operating expenses and
the fixed charges, the surplus is usually
distributed To the stockholders in the shape
of extra dividends.
The Business Increasing.
The street railroad systems Of this Dis
trict have not. however, reached that stage
where the directors, are bothered to know
what to do with the surplus, However, it
is recognized that the business is an in
creasing one, and. that each year the pat
rcnage, as well as the receipts, shows an
advance over the same figures of the pre-
vious year. 1t Is estimated that it costs
about twelve cents 10 run car for Il mile.
or that 1t can be understood that while
some trips pay handsome profit on this
expenditure, in others the margin grows
less and less. Thus, the problem which is
wrestled with perhaps earnestly as any
by street railroad man Is how to increase
the number of the profitable trips and de-
crease the number in the opposite class,
and at the same time provide an adequate
service. In this respect also the railroad
official receives Tuch gratuitous advice
from the public.