Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-05-13
Electric Railway interests
Discussed Before District
Committee of the House.
CROSSER BILL OPPOSED
BY COMPANY PRESIDENT
Proposed Operation of Utilities by
the Government-New Jersey
Man Sounds Warning.

ton of street railways In the District of
c. lumbia was commenced by the House
District committee today. The hearings
probably will continue all this week. as
members of the committee showed de-
cided interest in the subject. with some
sharply cefined differences of opinion.
President King of the Washington Rail
way and Electric Railway Company and
President McCarter of the Public SerV-
ice Corporation of New Jersey were
heard today Mr.. King discussed the
finances of the local company. while
Mr.. McCarter devoted himself to the
larger aspect of municipal ownership.
Statement by Clarence P. King.
Clarence P. King. president of the
Washington Railway and Electric Com
pany, said the street railways he repre-
sents have grown up under the eyes of
Congress, SO that these companies are
really the children of Congress Under
the idea of "the city beautiful" Con-
gress abolished the horse cars. caused
the trying-out of many systems, at a
cost Of millions Of dollars, until the
present admirable system was obtained
Company. there were some ten small
street car companies in the District
The situation was altogether unsatis-
factory. Capital came in and bought
light companies, to be operated by a
holding company. he said, but it did
not pay.
In 1900 the Washington Railway and
Electric Company was authorized to
issue fifteen million dollars of bonds to
enable the strong companies to take
over the weak companies. Under that
plan, he said. the street railway sys-
% a q f,11l {vooO
ington has certainly been benefited
by millions as a result of this opera
ton. while the public gets as low fares
as prevail anywhere in the United
States.
Benefit to Employees.
The 1000 employees have benefited
through good wages. steady work.
pension system and many admirable
features for the welfare and comfort
OF the men
Our work for our employees" de-
clared Mr.. King. 'wiA compare favor
ably with anything the government
has ever done for Its employees"
AS to the stockholders. he said. all
that they have received in dividends up
to the first of this year, since the be-
ginning, amounts to an equivalent of 2.S
per cent per annum.
This disproves the assertion of the
Commissioners that we are only con-
cerned in paying large dividends" said
President King.
Mr.. King then took UP some of Mr..
Crosser's arguments in favor of mu-
ncipal ownership of public utilities.
AS to Mr.. Crosser's citation of the
District of Columbia water works
ownership, Mr.. King declared that if it
were a private corporation the water
works would have been in the hands of
a receiver long ago.
And never would get out said
Chairman johnson. for If it were not
for the aid of the United states govern
ment there would not be any water
works.
Il will now analyze some of Mr..
Crosser's logic about the Cleveland.
Ohio, municipal ownership, said Mr..
King.
Mr.. Crosser Questions Accuracy.
AS the witness proceeded. Mr.. Crosser
interrupted to ask:
Where did you get those quotations
of my statements about Cleveland?'
Il sent stenographer to the meet
ing you addressed" said Mr.. King.
Well. the stenographer was wrong"
said Mr. Crosser
Mr. King said that Washington would
operation in Cleveland and he pictured
the wreckage of the Cleveland trolley
system last winter.
Neither would we tolerate the Glas-
gov system he said. Fancy carry
ing passengers free. why that is Ar
cadia.
Comments on Allegations.
Answering a question as to whether
the stockholders are interested in
suburban extensions, Mr.. King said he
was without information. He said that
Mr.. Crosser's charge that an average
five-cent fare obtains in the District
of Columbia is answered by the com
pany's annual report. Mr.. Crosser's
claim that the District of Columbia
street railway system can be repro
duced for 10000, 600, he said. was pure
guesswork.
The amount of outstanding stocks
and bonds of the Washington RAILWAY Y
and Electric Company and of the Cap
ital Traction Company as of April 80
| last shows Washington railway and
subsidiary companies. par value, s15,-
! 100000. and of bonds. the difference
between that sum and $33.221,250. This
does not include stock of the Potomac
Electric Power Company. The market
value of the preferred stock. the COM
mon stock and the per cent. per
cent and per cent bonds totals s29.-
| 2SS102 as of April last. The Capital
| Traction Company's par value was
| $4,000 600 and the market value was
| SIS $1,000.
You will therefore see that the marke,
value of these properties is about S4s,-
OOO.O0O. and this at time following six
months of publicity"
Some people say that folks don't take
1t very seriously" suggested Mr.. Igoe OF
the committee.
Speaks for the Stockholders.
Il am speaking for the stockholders
| said Mr. King. 1--WE believe that our prop
| erty is worth more than the stock ant
bonds outstanding against it,
The probabilities are that these prop
critics cannot be purchased for less than
fifty-tive and sixty million dollars anc
that would mean Issuing seventy-five ol
eighty millions OF bonds on > per cen
basis.
Mr.. Crosser proposes an issue of bond!
on 3.65 basis.
Mr. King said there are no real stree
railways that are municipality owned II
the United States. There may be some
little jerk-water roads thus owned bu
no real railroads. he added.
There are other public utilities munic
ipally owned. re said. such as watel
works He quoted from the commits
sioner of public utilities of Wisconsin t.
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