Evening star. [volume] (Washington, D.C.) 1854-1972, 1918-10-09
Will GRANT RELIEF
TO TRACTION LINES
Action of Utilities Commission
May Be Precedent for
Entire Country.
WAR BOARDS STATEMENT

Financial relief will be afforded
Washington's street car companies by
the Public Utilities Commission. This
can be stated upon authority.
In acting for Washington the COM
mission realizes it may set precedent
for the nation: 1t has had filed with
it by the war board of the American
Electric Railway Association statistics
showing the majority of the traction
lines of the country to be on the verge
of bankruptcy
Another national phase has been
given it's deliberations through the
fact that it has a recommendation
from the National War Labor Board,
which put greatly increased wage
scales into effect on a number OF
lines, that assistance be given the
local companies.
Latest Compilation of Figures.
The railway war boards figures are
the latest that have been compiled as
to the general situation. They were
presented at Mondays hearing before
the commission by P. N. Gadsden of
the board, who declared that vast
number of companies will be forced
into the hands of receivers within
sixty days If not given relief OF some
character.
MI. Gadsden submitted a table show
ing the income account of 388 COM
panies, controlling 63 per cent of the
total electric railway mileage. For
the first six months OF last year the
net income of these companies was
$15,546,393. For the first six months
Of this year it was but $2,773,357, a
reduction of S216 per cent.
And this reduction was realized, he
pointed out. before the new wage
scales. which mean an annual increase
about s100.0O0.O00. and approximately
a million dollar increase in the an
nual pay roll Of the local companies
went into effect.
Revenues and Expenses.
The detailed statement shows total
operating revenues for the 388 COM
panies during the first six months of
1917 of s2s6,o14.436, and during the
corresponding period of the present
year of $243,372,700. Total operating
expenses in 1917 were $154,496,6S7,
ana IN iSIo. va. I.IS1'IoV. an increase
of s17.2s6.o73: Net operating revenues
in 1917 were $81,517.749, and this year.
$71.579,940. a loss Of $9,937 ,S09, or 1919
per cent
While the decision of the board may
serve as a guide for commissions in
other jurisdictions having rate increase
applications pending. evidence was pre-
sented at Mondays hearing to the effect
that many companies already have been
permitted to put higher rates in effect,
in some cases 6. Z and cent fares hav-
ing been authorized.
Commissioner Gardiner made clear at
the hearing that the question of munich
pal ownership will not be permitted to
confuse the issue as to the actual needs
Of the companies.
1t may be. stated that there is no like
lihood Of universal transfers being or
dered if it should appear that they
would minimize or Offset the returns
from the increased rate sought to enable
the traction lines to meet the excessive
costs of operation produced by the war.
Policy Of the Commission.
The commissions policy, it is under
stood, will be to determine what relief
actually Is required and grant it with as
little delay as possible, both in the in
terest of the companies and the public.
lS lIupICSSCu W liC SidliA lIlO
new wage scale recently put into effect
en- both lines practically absorbs the en-
tire additional revenue that will be de-
rived il the scent rate applied for is
granted. There is a question in the
commissions mind as to whether the
companies have estimated sufficiently to
enable them to meet the constantly in
creasing operating costs and furnish ad-
eouate service.
Commissioner Gardiner at the hear
ing indicated that the commission is
considering some important collateral
issues by inquiring Of the officials of
the traction concerns If operation of
trailers and joint operation of tracks
is feasible. Vice President Hanna of
the Capital Traction Company ex-
pressed the opinion that the commits
sion has the authority to compel Joint
operation of the tracks If such a plan
should be considered to be in the in
terest Of improved service. Practical
difficulties in the way of trailer oper-
continued on Tenth Jesl