The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1919-03-04
The Public Should Not Be Called
Upon To Pay
FOR INEFFICIENCY
FOR HIGH FINANCE
FOR BAD MANAGEMENT
That ;s What Tho w r g. r Asks II to Do
That is What The W. R. & E. Asks 1t to Do.

things:
That the people Of Washington are ready to revolt
poraton service that is being furnished.
That the people of Washington voteless as they
are will resist to the limit any attempt to increase street
fares above five cents in order to pay dividends on
the water-Soaked securities of the W. R. E.
might well be understood that the Washington Railway
and Electric Company is in bad way. With millions of capital
stock that represents nothing but clear blue sky with the neceS
the point of falling apart and with generous part of its
income jeopardy as the result of the cutting OF electric light
and power rates figure fair to the public this company is
ang at the straw of increased fares to save its financial
There in the attitude of this company no promise of better
service There in its financial prospects prophecy of i'm
proved conditions.
What is printed above is reproduced from The Times of
Jsuuarys
The statement of conditions which accompanied yeser-
days appeal of the Washington Railway and Electric Com
pny for increased fares and higher rates for cleo
eicty makes sad story.
The cry for help is based largely the inability of the
companies to continue to pay dividends to stockholders
unless larger income is forced from the public.
There are three conditions which should be taken into
in considering whether not public utility
PoratiOn is entitled to continue to pay dividends to its
stockholders.
Frst-Is the company fairly capitalized so that rea
snabe earning viii furnish the funds for reasonable dv
dend9
Seconds the company rendering such service to the
public from the public the price asked for the
accommodations furnished?
Thirds the company so managed that dividends are
not paid the expense of unreasonable depreciation of
property with resulting ping of potential liabilities?
these three questions are asked regarding the Wash
ngtm Railway and Electric Company the answer in every
case must be 'No."
The actual assets of the company are greatly over
capitalized The service is shamefuy inefficient and the
dividends for years past have been paid at the expense
Of constantly depreciatng roadbeds and equipment
The company appeals to public Justly unsympathetic
It's complaints have been ignored and protests scOrned
There have been constantly reiterated statements by
the company of the desire to maintain good service and
the public has been obliged to take very questionable
word for a much-needed deed.
The Capital Traction Company while furnishing a by
perfect service, has evidenced desire serve
the public and while bearing the relative increases
in cost of labor and materials finds itself able to continue
its dividends and maintain its service without an appeal
for higher fares.
fares are increased on the Washington Railway and
Electric lines what be done in the case of the Capital
Traction Company? And if the public can ride cheaper on
the Capital companys cars how long will be before the
washington Railway and Electric viii have to make another
appeal for still higher fares with its income by the loss
Of patronage of those who will pay more than cents
Aor a service they can buy for a nickel?
The Times has commended that there was no good
for an increase Of street fares above cents There is
nothing III the appeal argument of the Washington Rail
way and Electric that changes that opinion.
another road giving better service and operating
under the wage scale and the cost of material
continue reasonably prosperous at scent fare there
no very convincing argument lor Durdenlng the public
with 20 per cent increase to pay for inefficient service
high finance methods and the results of bad management
Of the ". r. & E.
As to the price of electric current there can be no
possible argument for granting relief to corporation
which has for years been paying per cent dividend On
a Watered capitalization.
The electric company in the city Of Holyoke in Masss
chusetts which is municipality owned sells electric cur
rent at maximum price Of six cents hlowatt and with
liberal charge for depreciation and with only 1000 Gus
toners IL has made handsome profits.
CCOutinusd IN Last couma)