The Washington times., 1919-05-03
W.R.&E.ASKS
CONFERENCE
ON FINANCES
Action Bears Out Report of Con-
tempIated Abandonment of
Several Suburban Lines.
BY BILL PRICE.

BY BILL PRICE.
The Public Utilities Commission to-
day received a significant letter from
s. r. Bowen, secretary Of the Wash
ington Railway and Electric Com
pany, requesting an early conference
be granted by the commission with a
select committee OF the company re-
garding the finances Of the company
The letter fully bears out the exclu-
.sive statement in The Times yester-
day that the financial affairs Of the
company have reached a point which
probably will result, unless the COM
mission acts to afford relief, in com
plete abandonment of two or three
suburban lines, leaving the people on
those lines without service of any
kind, and the passing of the quarterly
dividend on $6,50O,OOO OF common
stock.
So far as the Utilities Commission
Is concerned il cares little about the
passing OF the common dividend, the
officials believing the company
should have done this at least year
ago. As to cutting off street car
service from a good many thousands
OF people the commission is deeply
concerned
Text Of Letter.
The letter TO the commission is as
follows:
AT meeting Of our executive com
mittee held today, a special commit
tee, consisting of Messrs. Allies, Ham
and Norment was appointed to wait
upon you to inquire when considera-
ton will be given to the company's
application for relief, and also to ask
II there is any further information
that the company can give regarding
its affairs which you feel is necessary
before action is taken. The company
has endeavOred to place fully before
the commission and the public all
facts necessary to a prompt deter
mination Of this matter, and believes
st has established by clear, indis-
pUtable and convincing testimony that
81 is urgently and Immediately in need
Of relief.
There are many things Of vital in
terest to the community and our Sc
curity holders dependent upon prompt
action in this matter, which Fge be
1ieve should properly be brotsht<tO
your attention.
"a special meeting of our board of
directors has been called for Thurs
day, May s, to consider the extreme
seriousness Of our present situation,
and IT is therefore our hope that you
will make an early appointment to
meet our committee before that time,
II possible"
Claim Abandonment Legal.
The commission will see the
special commission Tuesday. At
this interview the committee will !
give the commissioners some inside /
facts as to the financial affairs of the |
company 1t then will convey the
warning Of the purpose to abandon
those suburban lines which have been
and are now losing money.
The legal stan Of the W. r. & Z. |
Company has reached the conclusion |
that the company is within its legal |
rights in abandonment of the lines l
and that the courts would so hold. |
These lines are the Georgetown and 1
Tenleytown, which is the heaviest |
financial loser Of all; the Washington :
InterUrban, the next largest loser, and !
The City and Suburban, the latter un-
ill this year a profitable feeder OF the |
W. R. & Z.
The legal stan holds that these |
three companies are not part OF the |
corporate body Of the w. r. and E; |
that they always have made sepa- |
rate reports TO the Public Utilities
Commission, and are recognized as /!
separate companies: that although \
the W. r and Z. owns th@ majority /
Of stock in all three. It would be !
justified in throwing its stock own
ership overheard.
Might Compel Operation.
The position of the officials OF the
company is that the W. *. and r.
IS not justified in diveCtinS funds
badly needed elsewhere 10 cover the
operating expenses of suburban lines:
that in doing so ii is impairing its
own credit and existence, and that il
IS not under obligations TO continue
this.
Any action in the courts to compel
operation would be against the three
companies. il is claimed, and not
against the W. +. & E.
As against the legal opinion OF the
lawyers Of the company may stand
the legal opinion OF Conrad Svme
counsel for the Public Utilities Com
mission, who today is studying the
threatened new move Of the railway
company. There are authorities who
sold that the Public Utilities Com
mission has broad powers to compel
operation OF the suburban lines By
the stockholders. who are the owners
Of the W. r. e. f.
Court Action Assured.
II is practically assured that absn-
Comment OF the lines mentioned would
result in immediate resort to the {
courts either by the Public Utilities
Commission or citizens deprived Of {:
The service they need.
The whole thing would open up
unlimited judicial trouble. The W.
r. and Z. directors expect this. but
are firmly of the opinion they would
be successful I'm any action in the
courts attempting TO compel that
company TO operate lines which il
does not own outright as IL does the
other lines that are part of it's cor
porste existence, such as the Bright
wood line, the BrOokland line. the
Anacostia and Congress Heights line
and the Glen Echo line. These lines,
It is pointed out, actually were
bought by the Washington Railway
and Electric and are owned outright
by IL