The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1918-02-22
president, IN
UTILITIES NOTE,
OPENS LOCAL
.RY. PROBLEMS
BY BILL PRICE.

BY BILL PRICE.
Having a bearing more or less sig
nificant upon many Of the utility |
problems now affecting this city Is
important correspondence between
Secretary McAdoo, as director general
of railroads, and President Wilson, IN
which the President directs Mr.. Nc
Adoo to use his Influence with local
authorities to aid in preserving the
financial stability of street railway, |
light, heat and power companies
Mr.. McAdoo declares that because
of the increased cost OF operations OF
these classes Of public utilities there
is serious apprehension regarding the
adequency, under present conditions.
of the services and rates of local con-
Germs. A committee representing
public utility interests informed M
McAdoo OF conditions in many cities
that indicated financial and physical
breakdown unless there i-e Increased
fares and rates.
Need II Mutual.
In his letter to the President Mr..
McAdoo calls attention to the close
relations those utilities bear to the
industrial and economic life of the
nation and to the necessity that their
maximum strength may be main
tanned that each may contribute in
the fullest measure to the vigorous
prosecution of the war"
Nj McAdoo goes further and says
that "our public utilities are closely
connected with and are an essential
part Of our preparations for and sue
cesful prosecution Of the war and
the unfavorable tendencies revealed
in the papers submitted by represen-
| tatives of utilities companies may be
corrected only by prompt action on
| the part Of the respective Iocal au-
thorities."
Applications for increased rates
and fares are pending before local
utility commissions all over the
I country, and these has been reluc-
lance on the part of these commits
sions to hasten the financial aid that
the concerns are asking for.
The President says he fully
shares" the views OF Mr.. McAdoo and
hopes that state and local authori
| ties" will respond promptly. When ne
/ facts are laid before them, ito the
necessities OF the situation"
No Federal Control
Secretary McAdoo. as already tod
| in The Times, in connection with the
/ local street car situation, does not
/ favor Federal control or ownership
He has been swamped with requests
Vto take over crippled public UTILITIES
| that have spent most OF their money
| IN dividends in the past ana little
upon Improvement OF their proper
ties.
| The history of most Of them is the
| same Manipulated by selfish inter
ests for exploitation purposes, the
public was ignored. The returns
went into dividends while the prop
critics were depreciating in value.
Then the war hit them hard, adding
costs that were severely heavy
wiping out portions OF the rat dlSl-
dends and encroaching dangerously
tupon the capital invested. Having
failed to set aside depreciation or sur
plus accounts to meet conditions, the
utilities are not suitably equipped.
Mr.. McAdoo is personally familiar
| with local conditions in Washington.
but so far he has not taken hand
and may not do so. He knows the
personnel Of the District Utilities
Commission and has faith in their
| ability to handle the questions that
have arisen and will arise here.
Increased Fares Next.
OF the District utility companies
the gas and telephone concerns are
asking for increased rates. and the
Potomac Electric Light Company is
trying TO prevent a reduction of its
rate made by the Commission last
July.
The two street railway companies
have long had in mind asking for in
creased rates here and have merely
been awaiting the logical time. Their
first request win be for straight
cash fare OF 8 cents, abollshing six
ickets-for-a-quarter. Both VIII be
compelled in a short time to increase
the pay of mOtormen and conductors.
adding heavily to expenses. This will
give them just what they are look
ing for to apply for increased fares
in Washington.
The Capital Traction prospered in
1917 owing to the heavy additional
traffic in tits city, being able to add
an extra dividend to its stockholders.
What its prospects are for 1918 have
not been revealed. The Washington
Railway and Electric. which had been
paying fancy dividends on common
stock for some years, cut this divi-
dend. Its financial losses during the
year 1917 were due to the strike,
I WnlCn weakened It's operating lOIISS'
lost the confidence of the public, and
prevented It sharing in hauling the
many thousands Of additional people
at a profit. The Capital Traction.
through agreement with its employees,
, sailed along more smoothly, hauling
more passengers than at any time in
its history, the fares being collected
and turned in.
VIII Gas Company BenefitI
The Washington Gas Light Com
pany has already submitted its claims
and arguments for an increase In
rates to consumers in Washington,
and decision Is to be made shortly by
the Utilities commission.
The attitude of the national ad-
ministration. through Secretary Nc
Adoo. is made public at time when