The Washington herald., 1914-03-28
cost HEAVY FOR
DISTRICTS CARS
Report Of Washington Rail
way and Electric Gives
Companys History.
|LENIENCY OF CONGRESS
Only Reference to Recent Attacks Is
Mention of Attitude of Former
Asitators.
LENIENCY OF CONGRESS


Agitators.
The annual report of the directors Of
the Washington Railway and Electric
Company was made yesterday to the
stockholders.
The report has been awaited with great
interest owing to the attacks which have
been made upon the company by the
District Public Utilities Commission.
The report, however, does not directly
refer the Utilities board, but at the
same time the directors embrace the pp-
portunity in their discussion to set forth
to the 2071 stockholders the situation
which confronts the company.
The statistical features Of the report
were made public last January.
President Clarence p. King yesterday
gave considerable space to the legisla-
tion passed by Congress in 1900. known
as the merger act Extracts from
speeches made on the floor OF the SEN
ate and House are given. The great ex-
nen,e N which the company has been
placed is set forth with especial en-
phasis.
Underground system Rare.
WASHINGTON and New York, 1t Is de-
clared. ARE the only American cities
using the underground system. all others
being deferred by the immense physical
and financial difficulties involved.
.In 1897 says the report, there were
eleven street railways, excluding the
Capital Traction Company, and two eiec-
trio lighting companies operating IN the
District and in adjacent portions OF Mary
land Each of these companies had its
own oreanizations and equipment, Its
own separate car barns, power houses.
equipped with engines. dynamos, etc
I'm that year the idea was conceived
of bringing them all under one manage
meut. The owners OF the two electric
lighting companies therefore organized
the Washington Traction and Electric
Company.
.sThe washington Traction and Electric
Company issued s13.442.0oo 4i-2 per cent
first collateral trust mortgage bonds and
81, 10000 of capital stock. The stocks
in the above mentioned railroads and
the two electric lighting companies. the
latter known as the United States Elec-
trio Lighting Company and the Potomac
Electric Power Company. were pledged
as security for the bonds
Defaults ON Bonds.
1T was believed that by rebuilding
these lines, the erection of a central up
ton Of new machinery and new equip
ment to SO reduce operating expenses
and increase traffic as to meet all fixed
charges and reach a dividend basis at
an early date. But the venture did not
prove a financial success and the Wash
ington Traction and Electric Company
was compelled within two years to de-
fazlt the interest on its bonds
When IL became apparent that the
"a. Affinns ynlld
probably again prevail an effort was
made to effect a workable reorganiza-
ton. Through the earnest endeavor OF
Senator Mcmillan. then chairman of the
Senate District Committee, the merger or
reorganization act was passed, which
bears date of June .. 1890.
The Washington Railway and Elec-
trio Company was authorized by the act
to issue $50 900 stock, Of which $780,
Oc0 was preferred and sS,5oO.OO common
stock, and all OF the details to bring
about the consolidation out in the act,
special provision being made that the
Washington Railway and Electric Com
I.any should be permitted to acquire and
own the stock of the electric light and
power companies.
Under the powers thus granted the
Washington Railway and Electric Com
pany issued its stocks and bonds for the
purchase of all the properties of the
Washington Traction and Electric Com
pany, which company went out or exist
ence.
with the bringing together OF these
companies a liberal system OF free trans
fers was established by which one could
ride to almost any part of the city upon
the payment Of one fare. instead of two
or even more fares required under indie
pendent operation of the several COM
panies. and cars from the outlying dis
tricts were run through to the heart
of the city without change.
Congress, as noted in the reports,
quoted. realized that the problems con-
fronting the management Of the new
company were difficult and that years
would be required TO put the enterprise
upon a profitable basis; and for that
reason, while not relieving the company
of existing obligations, was careful not
to impose additional burdens upon it.
First system in United States.
The problems of unihcation and con-
solidation were even more difficult than
had been expected. Each company had
its own cars, its own power stations and
equipment Enormous sums Of money
were required TO -standardize construction
and equipment and make physical con-
nection of tracks so as to permit the oper-
alton OF all of the companies as unit
Separate power stations were abandoned,
and for the past few years the entire
power has been furnished from the strict
ly modern Benning station Of the Poto-
mac Electric Power Company. Facilities
of all the companies have been Jointly
used. as contemplated by Congress, so
as to permit the greatest efficiency Of
operation. with corresponding benefit to
.he public. With the most expensive type
II construction known to the art, with a
tie of fare lower than in most large
ties, and less than in any other city
Nth like construction; yet through the
advantageous use of the facilities of both
tue railroad and light companies. the
public is able to secure what may be
Justly termed a first class. up-to-date
service in every particular. A liberal
system Of free transfers Is in force, and
through cars are now brought in from
Baltimore, Annapolis, Laurel, Rockville,
Forest Glen, Cabin John Bridge, and
other points in Maryland, direct to the
heart Of the city.
These results have been accomplished
under physical restrictions and financial
hardships unknown in other cities, for
Congress declared that the beauty Of the
Capital should not be marred by over
head wires within the city limits. To