Evening star., 1919-04-04
W.R. .&E.'SAPPEAL
IMP LIES RECEIVER
# RELIEF SDEN|ED
Situation Most Desperate in
Company's History, Say
Officials.
FALL HALF MILLION SHORT
OF RETURNING 5 PER CENT
Demurrer to Petition Before Com
mission Says Increased Fare
Would Discriminate.

Would Discriminate.
Declaring that its present income
does not meet expenses. the Washing
ton Railway and Electric Company
went before the Public Utilities Com
lief which, if denied. it was plainly
intimatcd. will necessitate receiver
ship for the system.
Officials characterized the situation
as the most desperate in the history
Of the company. They asked the
commission to examine fully the in
come and operating expense records
of the railway and devise some means
by which it may be able to pay it's
bills and continue to serve the public.
They asked also that the public give
constructive assistance.
Carrying Suburban Lines.
Some of the figures presented were
that during 1918. the net income of the
company fell about 100000 short Of pay
ing 5 per cent return on the capital
invested and that the company is now
failing to meet fixed charges by about
SeS0.000 a year.
I'VE have been carrying the suburban
lines out of the earnings of the more
prosperous companies composing the
system many years." declared President
William F. Ham. in closing his prelimi-
nary statement to the commission. Eve
can no longer do So"
Mr.. Hams remarks were construed
generally as an intimation that the
suburban lines. principally the
Georgetown and Tenleytown and the
City and Suburban systems, will be
the first to go into the receivers
hands il relief is not granted.
Protests Increase in Fare.
At the beginning of the proceedings
steps were taken by William NICK. Clay
ton. representing the Federation of
basis for appeal should that body
not be satisfied with the decision to
be rendered by the commission.
For the federation he submitted a
general protest against an increase
in rate and for officials of the feder-
the company's petition. This was
overruled and an exception was taken
BY Mr Clayton as attorney for the
The principal contention advanced
ing Of an increase in fare to the
Washington Railway and Electric
Company without a corresponding in
crease being given the Capital Trac-
tton Company would constitute dis
elimination in violation of the pub
Revenue Called Inadequate.
Attorney ]. j.. Darlington began the
presentation Of the company's case.
He declared that it would be impos-
sible for it to continue to serve the
public on the present revenue. and
that II the company should fail it
would be equally impossible for a re-
ceiver to operate it with the present
income.
The City and Suburban line, last
year. Mr.. Darlington continued. failed
by about $4,000 to meet operating
feytown line also failed by a large
amount to meet the operating ex-
penses in 1918, he asserted.
Straight Scent Fare Not Enough.
That increased operating expenses
have more than consumed the increase
in revenue derived from the straight
hve-cent rare. which has been effect
i've for about four months, was an
other statement made by the attorney,
He said that, while the increase in
revenue to the company from the i've
cent fare has been ID per cent, the
company has had to meet approxi-
. .
pensea Among the items enumerated
were increases of 90'"per cent for
maintenance. 120 per cent for wages
and zoo per cent for cost of power.
Argues Against Flat Rate.
Attorney Darlington also advanced
the proposition that the time has
arrived when a fat rate no longer
is applicable to both the Washington
Railway and Electric and the Capital
Traction systems.
In support Of this view. he told
the commission that the w r. &
z. has three times as much trackage
to maintain as the Capital Traction
Company; that it operates more
cars and has d larger pay roll, W.,
approximately the same amount of
business.
Each company carried about eighty
million passengers last year, but the
W. r. & Z. operated fifty per cent
more cars and employed 1000 men. as
compared with 500 employed by the
Capital Traction. he asserted.
Company's Situation desperate"
Mr.. Darlington said the company'l
situation is desperate: that it desires
public, but that '.demurrers based on
technicalities'' will help neither the
company nor the public.
Showing the effect of his recent ill.
ness, which caused a postponement OF
the rate hearing. President Ham be-
gan by saying that in his twenty
years connection with the Washing.
ton Railway and Electric he never fel,
30 keenly the responsibilities resting
upon him as those of the present mo-
ment
I'VE are faced by a great emer.
UNnrv~
come when there must be a decision
whether the company is to be giyer
. revenue sufficient to senable it Il
meet its obligations and function
properly. The stability OF the com.
pany and the interest of the public
are at stake"
Governments Interest Cited.
Mr.. Ham referred to the interest OF
the FEDERAL government in the stree
railway situation generally and tn,
resolution adopted by the recent con
ference Of mayors and governors heis
in Washington. urging the govern
ment to give such assistance to tn,
street railway industry as will saw,
IL from bankruptcy.
II would be a national calamity, h,
suggested. for a Washington stree
railway system to fail, since Wash
ington has been looked to as the on,
city in which the traction industr,
should stand up under the high cost
OF operation imposed by war condi
tons
The local emergency Is brough
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