The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1918-09-16
UTILITIES BOARD TO-
PROBE FARE PLEA
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Continued from First Page.)
Of IL per cent since the reduction was
ordered. and has set aside a furd Of
thousands OF dollars for reimburse
mont OF electric light users N case
the courts uphold the commission In
the reduction in rates. But for tho
necessity OF setting aside this large
sum the dividend rate. due to the
prosperity of the electric light COM
pany. would have been greatly in
creased. thereby swelling the reve-
nues of the W. R. & z.
The Utilities Commission years ago
decided to treat the railway and cleo
trio light companies as entirely sepa-
rate. despite the ownership, putting
each on its own footing in valuations,
dividend earnings, and rates 10 the
public.
II Is a generally admitted fact that
but for the dividends II receives from
the Potomac Electric Light Company
the w. r. & z. would be compelled TO
asked for a much higher fare than S
cents. As a railway enterprise solely
the company could not stand firmly ON
its own feet under present conditions.
what Facts May show, -
1t Is much easier to get clear light IN
the affairs OF the Capital Traction Cor-
pany. That company Is now paying a
s per cent dividend to stockholders and
5 per cent on its bonds. II sets aside a
depreciation fund sufficient to maIntata
its roadbeds and equipment Its OBJECTS
estimate that the increased wages now
being paid TO motormen. conductors. and
other employees. just agreed upon, will
cost between $4,000 and S425.0o0 a Year
additional. )
In the year 1917 the Capital Trae-
ton Company carried 1921 ,073 paid
passengers. Its average return for
each passenger was .04303. or close to
$40 cents per passenger. showing
that tickets were bought by the great
bulk of passengers. A cash scent
fare would yield the company SAL
1878 additional revenue on Last
years passengers. So far this year
there has been a heavy increase N
the number OF passengers, insuring
over $450.0O0 additional revenue. some
what above the extra sum involved IN
the payment OF additional wages. =
The Washington Railway and Eleo-
trio Company carried 5S.9S3.597 pas
sengers in 1917. 1t really carried mil
lions more than that. but strilCs-
breakers and irresponsible employees
knocked down" fares that made big
NoNo "a AAN AGNA4A EEAuEhH VI AaEt1
collected. The average pay for each
passenger was .O4323. showing q
greater percentage OF cash fares than
on the Capital Traction.
Business Increase.
On this rate per passenger the net
increase in revenues for the company
would be s3ss,S1759. The statement
of the company. however. indicates =
very large Increase in fares and in
returns Of fares this calender year
over last The company estimates
that 1t will receive from a straight 3
cent fare 100000 additional In the
next year, or half a million dollars
through the slight Increase asked for.
On the face OF things the Capitol
Traction Company could aEord to
meet all its obligations for the future
on slightly less than a scent fare
while the other company may need
what it claims. according to the COM
missions officials.
At the same time It is pointed ont
that il would be almost impossible 70
do otherwise than fix 4 standard fare
throughout the city, affecting both
companies. which propose to maintain
present transfGr regulations and laws
IL permitted IL go on a scent basis.
OF satisfaction to the Utilities Com
mission is the fact that straight 5
cent fare. IL granted, may settle the
fare question here until the end Of the
war. The high wages being paid are
not likely to be increased for a long
time and other expenditures OF the
companies may not heavily increase
That the majority Of large cities Of
the country are now paying Scent
car fares is true. comparatively fen
remaining on the old basis Of cents
In this respect the cost OF living in
Washington may be kept below that
Of other American cities. Car fares
here are fixed by act Of Congress. but
Congress also conferred rate making
powers on the Utilities Commissions
This II q war Of equipment. Mes
are essential. but without equipment