The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1919-05-14
BOARD
NEARVERDICT
FOR v. R. &E.
Evidences That Commission
May Grant Additional ReVe-
nue. in Reasonable Amount.
BY BILL PRICE.


While there are increasing evi-
dences that the Public Utilities Cc-n-
mission will grant additional reve-
nues in a reasonable aggregate to the
Washington Railway and Electric
Company in a short time, no definite
action in this direction was made
known after the weekly meeting of
the commission today.
1t did become known. though. that
the commission gave much thought
to the subject before adjournment
and that a tentative agree ment il
probably in sight.
number of factors are bearing upoI
some delay in a decision so anxiousIy
desired by the officers and directors
of the company, some of which have
been given in these columns. One
however, is that the commission is not
inclined to grant revenues that may
be diverted to the payment of divi-
dends on common stock at this time
Whatever the future course of the
commission toward the total Of rev.
enues it may allow. there seems
little question that until there is
final settlement Of the valuation of
the properties of the company by the
courts. to which a decision on that
question will surely go. the commits
sion will give no increase of rates
sufficiently large to enable dividend
payments on common.
The directors OF the company meet
tomorrow afternoon to determine this
dividend. They understand pretty
well. it WAS stated today. that the
commission may view with dissatis-
faction the declaration of another
quarterly dividend. To this is added
the known fact that certain preferred
stockholders stand ready to bring in
junction proceedings in the courts to
prevent paying a common dividend.
If one is declared.
Company Affairs Mt Crisis.
The commission, though, is faced
by figures showing that the financial
affairs of the company have reached
a crisis of greater proportions than
those published have indicated. The
revenues and expenditures of the COM
pany for the first three months of
this year are anything but encourage
Ing. and there is little chance of the
company going upon the rocks il
revenues, probably to be
it, are used wisely and judi
ciously.
The commission is apparently at
sea though. as TO how to provide
revenues should its deci-
sion be that way. The problem is by
long odds the most veXed and trouble
some ever before that body.
1t reaches much further than that
of maintaining the credit of the COM
pany and protecting legitimate inves-
tors in securities in that il involves
the attitude of the commission toward
credits for District public utilities
for years to come.
Ways of Increasing Revenues.
Ways OF increasing the revenues
Of the company TO be considered by
the commission are these:
I-CrentIOn of twO-fare zones
In the District, the burden Of
which would fall heavily on
something over 20 per cent Of the
population living in the SECOND
zone.
a return 10 the former rates
for electric lighting, enabling the
Potomac Electric Light COMPANY
to pay to the W. r. and L.. its
owner, dividends large enough IN
make up the existing deficit I'm
the operation Of the railway lines.
"A @-cent charge for inter- ,
company transfers. alt of which
would 40 10 the W. r. and f.,
the Capital Traction TO get moth
ing These transfers are now
free. Company officials claim TINT
this would not yield sufficient
revenue.
4-Establishment OF dat
cents fare on both lines on the
understanding that the additional
revenues TO the Capital Traction
Company should he used nv that
company in starting the cOuEtrue
lion OF another downtown line.
paralleling the Fourteenth street
me- and probably TO run on Sew
enteenth street, from L 10 Po-
tOmac Park.
More Lines Arc Needed.
The commission Is imnreesod NTH
he need for further facilities IN re-
ieve congestion. and that would he
he main argument in behalf OF G.
cent fare.
The first TWO propositions do mt
appear TO be IN favor with the com
mission, and the two-zone scheme has
bitter opposition from civic bodies
The last two appear more feasible
han the others. although an increase
o 6 cents would likewise be fought
As to electric light rates, the att
ude Of the commission for wears ba.
,een that the electric light comnanv
hall be separated IN its affairs from
he railway; that the rates shall be
Ned so that the returns TO the stool
olders-the Washington Railway
nd EIectrlc-sh shall not exceed per
ent. For many years. until last
ear, the returns paid have been II
er cent annually, although that -
OF being paid Al this time.
Members of the commission bsv.
ED that electric light users shall {
OF bear the burden Of operation OF s
ne railway lines through what are :
as excessive dIvIdenda
roposition would therefore not be
dopted except as a temporary ex- /
and seemingly has no sun I
ort =
Almost any plan Of relief 10 n. '
1opted will necessarily be- tenn :
In l.