Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-10-21


necessary to maintain the integrity
and solvency of the Washington Rail
way and Electric Company should
in the view of Commissioner w
Gwynn Gardiner. have been raised by
increasing the rate for electric cur
rent, rather than by ordering a 7-cent
fare on both street railway systems
in the District of Columbia.
This is the view expressed by Com
missioner Gardiner in n minority
opinion. filed by him today as a mem
Der of the Public Utilities Commits
sion.
Urges Merger of Companies.
In his opinion Commissioner Gardi-
ner strongly urges a merger of the
properties of the two companies, de-
ciaring that only by such action can
the street railway situation in the
District of Columbia be- clarified and
operation, rates OF far proper de-
velopment OF suburba sections. etc.
be placed on permanent and salts
factory basis.
Basing his estimate on average
households and average monthly bills
for electric current. Commissioner
at present 23.32o househol ders in the
District use current supplied by the
Potomac Electric Power Company
The stock of which is held by the
w. i. and E. Co. These household
ers, the records of the Public Utili-
ties Commission show. use an average
of S2.35 worth of electricity a month
according to their bills.
By increasing the average to $3.15
per month Commissioner Caroline
Il gz.. :&s
would be raised to make increased
street car fares unnecessary. The
increased rate for electric current
the dissenting opinion declares. also
should apply to large users OF cur
rent as we'll as to householders. Such
increase would be realized by in
creasing the rate to IL cents per
kilowatt hour instead of the present
rate OF 10 cents. ss.
Effect on Capital Traction.
Commissioner Gardiner, in his dis.
sentfng opinion, showed that the in
crease in fares allowed to the Capita
Traction Company as well as the
Washington Railway and Electric
Company would give the former
company an increased revenue Of
about s550,000 in the next six months
This. ided to the excess. at present
rates of fare, of $499.467.3 per yeal
over the net earnings required to pay
return of per cent on investment
would give the Capital Traction Com.
pany considerably moro than a mil.
lion dollars beyond it's needs and be
yond the amount necessary to pay
what is fixed by the courts and by
the Public Utilities Commission as
fair return on investment.
Commi ssioner Gardiner points ou'
that under present rates Of fare the
net revenues of the Capital Traction
Company are sufficient to pay nearly
10 per cent on the value of its invest
ment as fixed by the Public Utilitie.
Commission.
Points to Courts Position.
Commissioner Gardiner prefaces his
opinion with q statement of the posi-
ton taken by the Supreme Court OF
the United States that any return less
than per cent on the value of the
property Of a public service corpora
ton is confiscatory
The opinion includes a brief resume
Of the history of the Washington
Railway and Electric Company and
of the companies that preceded it and
system. He shows that under the
valuation of the Public Utilities Com
mission the company is entitled to
returns above operating expenses and
tdNeS OIL 90 yearly. Adding
the sum of $13s,000. which the com
pany paid under the law last year ar
4 per cent of it's gross revenues. and
which it will pay this year, the
opinion says. it will be found tina,
$1.116.514.8S is the least that can be
properties by the Public Utilities Com.
mission. For the first seven months
of this year, Commissioner Gardiner
states in his opinion, reports to the
Public Utilities Commission showed
the company's net income available
for return on investment was ONLY
$4,000, where they should have beer
1851, 10000.
Contrasts With Rival Company.
Contrasting this showing with tina,
of the Capital Traction Company, the
opinion says:
THE Capital Traction Company TO,
the first seven months of this yea
earned available for return on invest.
ment, s7S0,000. At the minimum rate
of 6 per cent on the valuation of the
property Of the Capital Traction Com.
pany. 1t would be entitled to earn r.,
twelve months $s56.22s7S, and for the
period of seven months. In order "a
make 1t comparable with the Wash
n should have been permitted to aarr
only seven-twelfths of ss5S,22s.73. or
$449. 467.S6.
ratio of faro tho Capital Traction con-, .
Many has earned $.s0.5S260 NOR. thar
The minimum return of 6 per cent an
ths commissions valuation, while tba
washington halfway and EIectric
comDanv has failed to earn the min
,mmm return OF 6 per cent on the com
MISSIONS valuation by S66l,a35
Citing operation costs Of the TUE
oomnonies, tho opinion shows thai IL
oosts tho washington Railway SD
Eisctric Company S8.0a cents psr ,siis
r. onerate it's cars over it's system the
actual cest Of carving each passen-
The same itema foe the Capital
- onsrating oars. a1,aa cents; aetna
coat Of carrying each passeneer
,035416 cents
Increase In Current Rates.
In u;sw OF all the facts aaduo.s Of
,ba various hearings before the pmh,ie
fItilities Commission during the uatua =.
ION proceedings and the earhines on
renuests for increases in fares br the
Washington halfway anS Electric
Company. commissioner Gardiner in
his opinion expresses the heller that
III proper solution of the veSatinus
n,nroblem is an increase in rsfas for
aaiectric current supplied nv the Poto-
mac Electric Power Compsnv !. suh-
sidiary Of the Washington RsiIway
and Electric Company. rather than
By an increase Of fares on the lines
(Continuad en- Second Pare;