The Washington times., 1919-10-18

| intra-transfers are approximately
| $3.50, 900, which added to the estimated
| deficit OF S85O,0OO as the sum TO be
raised through an increase in the
/ fiat rateeof fare. Assuming 84,35O,OOO
pay passengers per year, the sum re-
! quired can be obtained approximate
/ ly BY charge Of seven cents for cash
/ fares and six and one quarter cents
| for ticket fares When the rate OF
fare was five cents cash or six tickets
! for twenty-five cents, cash fares were
I thirteen and three tenths per cent
Of the total. Assuming that this pro-
/ portion will hold IL cash fares arc
made seven cents and ticket fares
/ six and one quarter cents, the esti-
mated increase in revenues viii be
/ S1,13S. 10000 or $4,000 in excess Of the
amount required.
No Allowance Made
For Several Costs.
No allowance in the above esti-
mates has been made for gross in
come tax on the increased revenue,
nor any allowance for the cost in
CURED IN printing and handling
| tickets, but IL Is believed that the
amount by which these additional
charges exceed the difference Of
! SS,OOO will be more than offset by the
operating ecOOnmies to be efIected
through re-FOuting.
Having reached a conclusion as to
the extent to which additional rev.
enues are needed by the Washing
ton Railway and Electric Company
and its subsidiaries, and as to the
best means Of raising such increased
revenues. Il Is Of Importance to de-
termine whether these increased rates
Of fare shall apply only to the Wash
ington Railway and Electric system
or whether they shall apply alike to
ali street railway companies within
the District Of Columbia.
There would be but one answer TO
this question &c the two companies
were not competitive, but with prac-
tically every line OF the Washington
Railway and Electric Company with
in the city proper. paralleled by a
line Of the Capital Traction Company,
the application Of discriminating
rates TO the two companies would, IN
the opinion TOT the commission, re-
suit in such a disarrangement Of the
arteries OF city transportation as 70
make 1t utterly impossible for the
Capital Traction Company &c render
adequate service, while, at the same
time, the reduction in the number OF
passengers on the Washington Rail-
way and Electric system would, to a
large extent, offset the effect on the
gross revenues of the increased fares.
The two systems are so related that
II the present character Of service is
to be maintained, much less improved,
IL IS deemed imperative that uniform
rates be maintained on the two sys-
TENS. For similar reasons the in
creased rates should also apply 10 the
Washihgton-Virginia Railway COM
pany. As no charge is made for trans |
fers between the Capital Traction
Company and the East washington
Heights Traction Railroad Company, |
the new rates will also apply to that |
line, even though il Is not a competing
line.
TuFns Down Plan
For Light Rate Increase.
To equalize the existing disparity in |
the net earnings OF the two principal /
street railway systems, It has been |
suggested that the increased reve- /
nues needed by the Washington Rail- /
way and Electric Company be pro- /
vided by increasing the existing rates |
for electric light and power. thus 1
throwing upon the electric light and i
power consumers the burden Of max /
ing good the deficit on street railway 4
operation. This the commission be- /
lieves to be not only inequitabIe and i
unjust, but illegal
In the opinion OF the commission,
IL the problem before IL were solved
in this manner, an order based there
on could be successfully attacked in /
the courts by any user OF electric
light or power. The zeal question Is
this: Shall the full cost Of furnishing
~ -,
users Of that service or shall a part |
of il be paid by the users OF a totally
dissimilaT service through increased
rates to them, because the owners OF
the two utilities in question happen
to be identical?
It is true that the disparity in the
net earnings Of the two principal
street railway corporations is very
great, and every proper means OF cor
recting this disparity should be taken.
In the opinion Of the commission, a
big step toward this end lies in modi-
flying the provisions Of the law un-
der which street railway companies
are required TO pay into the public
treasury 4 per cent Of their gross
While this law has been on the
statute books for many years, IL is
.nequitable in its terms and in the
Judgment Of the commission should be
by eXempting from taxation
that part Of the income required to
meet operating expenses and pay a
fair return upon the fair value Of !
The property, and that upon income in
excess OF the amount exempted tax
should be levied upon a sliding scale i
rs IL done under the general Federal
ncOme-taN law. Il
il is the intention OF the commits
sion 20 present this matter TO Con-
yress at an early date, together with
certain other suggested changes in the (;
aw, designed TO relieve the street !
-ailWay companies from burdens now
resting upon them. which in the /
opinion Of the commission, should !
be borne by the community as
whole. II such legislation
s enacted, II will necessitate a
downward revision in rates Of serv-
ce, which IS one reason for limiting
he rates established by this order to
/ siX-months' period.
Fara 90 Fn4Hr a