Evening star., 1919-05-03
Has Alarmed Patrons.

Has Alarmed Patrons.
Statements by the company, unless
1t is enabled to increase it's earnings,
1t will be forced to abandon it's un-
profitable properties. have alarmed
the patrons of the Georgetown and
Washington Interurban lines. which
are the principal non-paying auxili-
aries.
The commission, it is indicated, in
all probability, will take the position
that the parent corporation cannot
legally divorce itself from these lines
and that 1t must continue to operate
them. even at q loss.
While members of the commission
Will not discuss the situation, it is
said to be likely that. in the event Of
service being discontinued on any of
der 1t resumed. with a heavy penalty
stipulated for failure to comply with
the order.
In short, the attitude Of the COM
mission is believed to be that the COM
pany is legally bound to furnish serv-
Ice, and that 1t cannot throw any Of
its lines into separate receiverships.
Company's Attitude.
attitude. 1t holds that while it is the
owner Of the stock of the suburban
lines mentioned. it is not required to
make advances to them for operating
expenses out of the earnings of its
own stockholders.
AS all three lines are operating at a
heavy loss, refusal of the Washington
Railway and Electric Company to
to make further advances would mean
a suspension Of service, it Is pointed
out.
The biggest legal battle in the his
tory Of Washington's public utilities
is predicted IL the company is not
save itself ~ abandoning the un-
profitable lines.
In a final effort to surmount its diff
ficulties, the company today appealed
to the commission to expedite con-
sideratioh Of its appeal for authority
to charge an Increased fare.
The commission has agreed to meet
representatives Of the company next
Tuesday. At this conference plans
may be devised for practical relief,
but the problem admittedly is tho
most complex one the commission has
ever faced.
This Is due to the fact that the COM
mission cannot increase fares for the
Washington Railway and Electric Com
pany without ordering a correspond
ing increase for the Capital Traction
Company, and that suburban resi-
dents are unit in opposing the grant
ing Of relief through zone charges.
No Practical Suggestion.
The Federation, Of Citizensf Assocta-
tfons has taken up the problem. hut
as yet no practical suggestion Of any
sort has reached the commission as. to
how relief may equitably be given.
President William r. Ham. Milton e.
Allies and Clarence F. Norment are
the company representatives who will
meet with the commission Tuesday.
A special meeting Of the board Of
directors Of the company has been
called for Thursday, May 8, to con-
slider the "extreme seriousness Of the
situation"
Unless the conference with the COM
mission Is productive Of results the
board Of directors Is expected to take
drastic action.
Ofacials of the company today said
they wished to make 1t plain that
their statements regarding the subur-
1t was simply case they said. of the
parent company no longer being in .
financial condition where 1t could keep
up payments to the companies that
are operating at a loss.
According to statements made by
the officials, the Georgetown and Ten
leytown company is now indebted to
Company in the amount of $4S4.226.
The Washington Inter-urban Company
owes 1t $202.696.82. and the City and
Suburban. $172,80202. These COM
panies are not meeting earning ex-
penses and have not been able to keep
up their interest payments. 1T is
stated.