The Washington herald., 1914-05-14
OPPOSE PLAN TO
RUN CAR Lines
CONTINUED FROM PAGE ONE.

had been installed by private capital.
and financed under even per cent
bond issue. II would be necessary to
pay out $4,000 a year to meet simple
interest"
Mr.. King used this example of mu-
nicipal ownership to give an illustration,
right here at home Of the practical work.
ing of a municipality owned public
utility. He gave the illustration a di-
rect application by drawing comparison
to show what the street railways would
have to earn to pay even the a65 in
terest provided by the bond-issue at
tachment Of the Crosser bill
Quotes Mr.. Cros.er.
The witness quoted Representative
Crosser as saying that all Of the street
railroad lines within the District of Co.
lumbia could be acquired for so, 900, ,0Oo
and then gave a detailed statement
showing that the combined stocks and
bonds of the Washington Railway &
Electric Company and the Capital Trac-
ton Company outstanding, at par. reach
a total Of SSl, 221 330-with a market value
Of SE,1sl, 1oe. But he declared his belief
that the properties of the two companies
could not be acquired by purchase at
less than $4,000 900 to s6o.ooo. .ooo-if even at
that level.
And doubt il It would be found pos-
sible to market a bond issue Of the Dis
trict Of Columbia for this purpose at less
than five per cent" he said. land if this
were true ii would require fully $4,000 900
to finance the proposition
After giving a detailed review of the
history of his own company, and calling
attention to the fact that the local rail-
ways have developed under the eyes Of
Congress. Mr.. King referred to the au-
thorization by Congress in 1900 of the
issue of s15.o0o0O in stock and certain
bonds by which the Washington Rail-
way and Electric Company was empow-
cred to, and did, take over the various
companies which now form the COM
pany's system. He declared that mil
lions of dollars have been spent through
the years in changing the equipment,
tracks. motive power, and that it is only
within comparatively recent years that
the investors in these securities have be-
gun to receive even a modest return in
dividends.
Receipts Have Increased.
I'm 1900 Our total receipts were s.
100000" the witness asserted. while last
year our gross receipts were 5000 OO0
In this period not one share of additional
stock has been sold. and we naturally be-
lieve our property is worth more than 1t
was in 19C0-more in fact than the stocks
and bonds outstanding against it,
I'VE are not questioning the theory of
regulation of public utilities" the wit
ness said in developing another angle
Of his argument, but We do question the
control which would be vested
in the Commissioners Of the District of
Columbia by legislation such as this
There are now no street railways mu-
nicipally owned and operated in the
United States. and it is open to grave
doubt whether any such uncertain ex-
pertinent should be tried here"
Mr.. McCarter began his argument by
declaring that he does not own a share
Of stock in either the Washington Rail-
way and Electric Company. or the Cap
ital Traction Company, and that he has
not so much as one dollars worth Of
interest in either.
Calls Whole scheme Wrong.
'The whole scheme of municipal own
ership is un-American, unpatriotic," he
said. 1T means bureaucracy galore-the
taking into government employ OF an
enormous army of men. The experiment
should not be tried here. of all places.
because Of the moral effect Of such a
precedent. Our own company in New
Jersey employs 1000 men, and It repre-
sents approximately 2 per cent of the
street railway systems of the country;
and il the same proportion should hold
good generally, 1t would mean the addi-
ton to the roll of government employees
Of 10000 to 10000 persons; and who can
say what sthe effect would be Of the in
lection OF this force into politics? And
even though this political phase does not
exist in the District Of Columbia such
legislation still would have q stamp of
which Is entirely foreign to