The Washington times., 1919-05-06
BY BILL PRICE.

by BILL PRICE.
A frank Showdown" as to the af-
fairs Of the Washington Railway and
Electric Compan- took place today
behind closed d at the District
Building.
THE participal, IRE the three
members OF the Public Utilities Com
mission and a special committee OF
three of the principal officials and
stockholders Of the company-William
7. Ham, president; Milton z. Allies
chairman of the board OF directors
and Clarence T. Norment, leading
banker and members Of the board.
This conference was preliminary to
the most important meeting OF the d.
rectors of the railway company ever
held. to take place Thursday, al wnlch
momentous decisions may be reacheo
May Drop Lines.
with straiEhtforward but courteous
frankness the representatives Of the
W r. and E. told the commission that
the company is no longer In posltIon |
TO carry at least two and possibly
three of it's suburban subsidiaries and
that the legal department Is sangulne
that there is no legal obligation TO !
longer compel ii to do so. The COM
pany intimated that it has no desire |
forced to do so unless the commission
is willing to extend some measure "
financial relief.
COmmisaIOn Gives No Hope.
In spite of these representations, the
commission, IL is understood, held out
no hope that IL will give relief now or
At any time in the near future. 1t Is
Withholding its decision on this ques-
tion pending investigation by its own
experts as to the claims of the COM
many regarding deficits. pending its
efforts TO arrive at a valuation OF the
properties of the company, and de-
sire to digest the forthcoming eaTiF
decision of Judge Gould as to the
various questions raised in the appeal
Of the Potomac Electric Light Com
many from the decision OF the COM
mission two years ago in lowering
electric light rates in the District
Apparently the special conmitte
Of the company made no Roadway
with the commission in obtaining a.
surances that il may expect at least
relief that will enable il to continue
90 carry the Georgetown and TenlCy-
town, City and Suburban and Wash
inEton Interurban lines. Consequent
" Il will be up TO the directors Thur
CAV 70 determine what is to be done
about proposed abandonment and
passing Of the dividend On common
stock.
Declare Lines Distinct.
The committee politely limited that
these three lines are separate entities;
operated separately, with distinct sets
Of directors and organizations hold
ing annual meetings OF their own and
regular meetings OF the. directors;
making separate reports q. m the W.
u and Z. TO the Public Utilities
commission. the Interstate Com
merce Commission, and two Of them
TO the Maryland Public Service Com
mission. The parent company, they
said. bears the relation of stockholder
only in two Of them. The G. 7.
owes the parent company S132 900 for
money loaned for operating expenses.
the washington Interurban $4,000,
and the City and Suburban is just .
meeting operating expenses, being
unable TO take in revenue sufficient
TO pay fixed charges. The g. and T.
owes altogether $500, 900.
improvements Ordered.
The District, IL was stated. had
ordered street improvements on the
G. & T. and c. & &. aggregating
about 100000, with the parent COM
pany feeling itself not justified in
cumstances. To make loans would
hurt the parent company and it
would have no assurance that they
would ever be paid. The parent COM
pany needs all Of its money. and can
not borrow more, as matters stand.
The committee declared that the
parent company had been liberal in
its charges to the subsidiary COM
panies TO degree that meant loss
since 1914. il was charged only cents
per car mile for power, which does
not meet the actual cost of general
ing the current II has charged but !
IN cents per car mile for rent Of {
ears: much less than the charge
should be.
The committee argued strongly
against delaying an increase Of rev.
enues until valuation IS completed :
or until Judge Gould has rendered '
decision Not any Of these matters
touch the issue OF the immediate need
Of relief. II
The committee held that sugges- {
tions that the dividend on common
stock should be passed were not valid
II Is argued that there are just as ,
good reasons for paying this dividend ]
as for paying the interest on the :
bonded debt or dividends on the pre-
ferred stock. All were issued at the
same time, they said. and the COM
mon stock e. entitled 10 equal protec- ,
tion. There Is value behind the en- {
tire capitalization OF the concern, II I
was declared. II