The Washington times., 1918-05-04
v. R. &E. ASKS
PERMISSION TO.
SELL BONDS TO.
BUY NEW CARS
ny BILL PRICE.


The Washington Railway and Elec-
trio Company has asked the Utilities
Commission to be allowed to issue
t572,OOO OF new per cent. bonds, re
deemable at any interest rate at 1O2,
TO obtain funds with which to pur-
chase the fifty additional new cars
ordered by that company.
While the request will probably be
granted It will give impetus to the
determination already reached by
members Of the Utilities Commission
that in fixing the valuation OF the
properties of the two street railway
companies Of the District there will
be established for the future a de-
probation rate that Will enable the
setting aside of a satisfactory depre-
citation fund TO take care of general
depreciation Of properties, including
the purchase Of new cars and retire
ment OF obsolete running equipment.
Consider Depreciation Fund.
The hearings as to the valuation Of
the Washington Railway and Electric
lines will be concluded within a short
time and in the final questioning of
the railway officials there will be
subject OF the accumulation of
proper depreciation fund.
The bonded debt OF the Railway and
Electric Company was close TO SIG
100000 at the close OF 1916, with lit
tie change for 1917.
The Capital Traction Company has
ordered twenty new cars and has
made no request for issue OF bonds to
acquire funds. They are TO be paid
for Onf Of danrarFoFsor
company has been carrying for some
years.
All public service experts are now
in agreement that street railway
properties can not be maintained on
standard lines without proper depre-
citation funds, the inevitable tendency
wherever these properties are owned
by corporations being to use the re-
turns in prosperous years for boost
ing dividends. forgetfuI Of the ma
teriat condition OF roadbed, rolling
stock and general equipment.
The Utilities Commission NAV also
10 into the question OF what IS the
life OF street car rolling stock, that
forming an important part Of the
claims OF street railways for valua-
ton purposes. II a company's claims
that car ought to be good for
thirty years should hold, then il be-
Z 3
ton adjustments. On the contrary,
utilities experts assert that at the
outside street car, no matter how
thoroughly il is kept in repair, is
absolutely obsolete and useless after
about twenty-five years, and ought
not 10 be kept in service that long.
Final valuation estimates are TO be
placed on the Capital Traction properties
as well as on the Washington Railway
and Electric.
The proposed merger OF the two street
car companies, negotiations looking to
which were undertaken some weeks ago
still hang fire, with slow progress toward
a final solution. limitations current in
well informed circles are that the pro-
posed basis for merger, practically the
only basis upon which the two interests
can get together, finds the respective
committees representing each side rather
FAR apart as to agreement
There is no intention, though. 10
abandon the attempt at the present and
the joint committee will stick 10 the Job
so long as there is the slightest hope Of
success.
In the meantime the new mana cement
OF the Washington Railway and Electric,
with Milton Allies at the head OF the
board Of directors, and Vice President
Ham directing operations. is striving 10
for the interests of the public, as shown
IN steps already taken in several direc-
tions.
BeeIer's Recruiting Report.
John A Beeler has submitted 70 |
the Utilities Commission important
recommendations for the reroutinE Of
cars OF the W. r. & L. lines to in |
crease efficiency. He takes the view
that a merger OF the two lines follow |
ed by rerouting, would promise great |
results for car service in Washing
ton. In the absence Of that merger |
he is submitting recommendations |
for rerouting on the w. r. & =. first, |
recommendations concerning the Cap |
ital Traction to come later.
Mr.. Beeler thinks that the steps al /
ready taken by the Utilities Commits |
sion have reduced congestion and I
speeded up traffic, at the same time !
increasing track capacity. The pres |
emit routing OF cars on the w r. & f. |
has changed little in a generation,
while Government activities and the
city's population are increasing rap
idly
Successful rerouting will require
the expenditure OF considerable money
for the construction OF curves and
connections, but these can be done
slowly, eventually resulting in a bal
Gnced service on ell routes.
One OF the effects Of the rerouting
program, il adopted, will be the aboIi-
ton Of the G street stub end at FIJI
teenth and G streets, except for a few
cars, Beeler considering that one OF
the most bothersome features Of the