Evening star. [volume] (Washington, D.C.) 1854-1972, 1918-09-18
FLAT Scent RATE
|0N CARS HERE SOON
War Labor Boards Attitude
Forecasts Early Passing of
Six.for-a.Quarter Tickets.
INCREASE HELD JUSTIFIED

With the Capital Traction Company
serving notice that 1t will apply for
authority to charge a straight Ave-
cent faro and the National War Labor
Board recommending to the Public
Utilities Commission that financial re-
lief be given to the Washington Rail-
way and Electric Company. whose Pc
tition for an increased rate of fare
already is before that body. indica-
lions today point strongly to the
probability that the privilege Of buy
ing six street car tickets for quarter
in Washington will soon be a thing
Of the past.
It became known today that the
Capital Traction Company informally
has notified the commission that 1t
will seek q higher rate of fare in
order that It may meet the increase
of more than 100000 annually in
its payroll. involved in the new pay
scale announced last week and other
increased costs Of operation imposed
by war. Formal application. it Is
expected, will be filed Monday.
Anticipating this action, the COM
mission. which met today, did not
set a date for a hearing on the ap-
plication of the Washington Railway
and Electric Company. Both cases
probably will be taken up at the
same time.
Tho commission has received from
the executive committee Of the Board
of Trade a communication stating
that It recognises that street railway
companies have been hit hard by war
costs and urging careful considera-
ton Of the matter at a public hearing.
Board Holds Increase Necessary.
The communication received by the
commission from the National War
Labor Board is signed by former Prest-
dent Taft and Frank P. Walsh, chair
men and arbitrator. 1t declares that
an increase must be given and that
''overcapitalization, corrupt methods
and exorbitant dividends in the past
are not relevant to the question Of
policy in the present exigency.'
The boards letter Is as follows:
I'VE beg herewith to transmit two
communications from the Washington
Railway & Electric Co. to our board.
These communications show that in
Difference to our ruling as arbitrators
under the National War Labor Board.
this company, which now pays its
men rates per hour varying from 81
cents to 80 cents on a scale effective
j 1,
crease from a rate Of "a cents to 80
cents an hour, has increased its rates
to accord with our rulings in the Chi
cago. Detroit and Cleveland cases to
a rate varying from 43 cents to 48
cents an hour. That this Will involve
a very large increase in the operating
cost is shown by the figures submitted
by the company and indeed goes with
out saying.
1--WE feel that as this result has
been attained by an acquiescence by
this company in our rulings in other
cases, this company Is entitled to the
recommendation to your board which
we gave to the street railway com
panies Of Chicago, Detroit and. Cleve-
land. as follows:
1--WE have recommended to the
President that special congressional
legislation be enacted to enable some
executive agency Of the federal gov
eminent to consider the very perilous
financial condition of this and other
electric street railways Of the coun-
try and to raise fares in each case
in which the circumstances require it.
justifying federal interference.
Should this be deemed unwise. how
ever, we urger upon the local au-
thorities and the people OF the local
ity the pressing need for such an in
crease adequate to meet the added cost
OF operation.
Maintenance Of Operation, Issue.
""This is not a question turning on
the history Of the relations between
the local street railways and the mu-
inequalities in which they operate
The just claim for an increase In
fares does not rest upon any right to
dividend upon capital long invested
in the enterprise. The increase in
fare must be given because of the i'm
mediate pressure for money receipts
now to keep the street railways run
ming, SO that they may meet the local
ard national demand for their service
Overcapitalixation, corrupt methods
exorbitant dividends in the past are
not relevant to the question OF policy
| in the present exigency.
I'm justice, the public should pay an
adequate war compensation for q
service which cannot be rendered ex-
cept for war prices. The credit Of these
companies in floating bonds Is gone
Their ability to borrow on short notes
| is most limited. In the face OF added
expenses which this and other awards
of needed and fair compensation to
their employees will involve such credit
will completely disappear. Bank.
ruptcy, receiverships and demoraliza.
! ton, with failure Of service. must be
the result. Hence our urgent recon-.
mendation on this head"