The Washington times., 1919-02-11
NEW CARFARE
TO Be BASED
ONVALUATION
Of PROPERTY
BY BILL PRICE


critics of Washington will be Of far
reaching Importance to every stock
and bondhoIder OF these utilities rs
well as to the public in general.
Il is apparently little understood
that the commission, in the absence Of
authoritative conclusion as to the
valuation OF these properties, has per-
mitted sufficient income from fares
charged the public to allow reason
able returns upon all outstanding OBJ
legations OF the companies. Once the
commission has determined valua-
tions, the fares charged the public
will be fixed at a unit sufficient to
pay reasonable returns upon actual
valuations, and not upon company
valuations. unless prevented from
doing so by action OF the courts.
Anticipating an early application
from the Washington Railway and
Electric Company TO be allowed TO in
crease fares in the District to sweIl
its finances. the commission is seek
ing TO quickly conclude its valuation
hearings.
Sure to Ask Higher Fares.
1t is not yet known whether the
Capital Traction Company will make
taneOus with the W. r. and Z. That
the latter will do so is generally
known. Its financial affairs are not
in the same prosperous condition as
the Capital Traction. 1t is this diff
ference in financial status that gives
the Commission so much study and
worry in connection with rates to the
public and will probably end in a rec
OmmendatiOn by the Commission
sooner or later that Congress enact
legislation that will give the District
ownership and control of the two
lines, TO be operated as one. All ef-
forts at merger Of the two companies
agreement among them is seemingly
out Of question.
The only way they will ever be
operated as one, as things now look,
is through municipal ownership, pos
sibly almost as remote as voluntary
merger, much depending upon the at
Jitude OF the incoming Congress- to
government ownership. The govern
ment is so directly coHeerned in good
street car service here that Congress,
even If hostile to government owner
ship Of steam railroads, might view
the situation here differently.
Valuation Of w. r. and z.
The commission is to cross-eXsmine
Frank T. Nelson, the consulting engi-
neer who testified as to the historical
cost Of the w. r. and E. properties,
that is, the actual cost as appears
from the books OF the company. After
his cross-examination the commission
will be able to listen to arguments.
Harold AImert yesterday testified
that the cost Of reproduction of the
". r. and L. and subsidiary lines
would be $29, est, ,2s3.
Mr.. Nelson testified about a year
ago that the properties had actually
cost SO, ,eS1. .544, as he saw it from the
books. This total includes large items
Ior conceiving, promotion, etc.
Charles L. Pillsbury, employed by
;he commission to give his view Of
the reproduction cost Of the proper
ties. testified that SI3746.26O would
CO the job, far less than half the
sum set by Mr.. Almert
On historical cost the witness for
the commission was Andrew Sangster.
He testified that from his eXamina-
ton Of the books OF the company the
properties had cost SiO.3T6.S2S, about
half the sum arrived at by Mr.. Nelson.
The total stock and bond obliEa-
tons OF the company and its subsid
iarics is close to S3J, 100000.
The witnesses Of the company all
recognize promotion costs as part OF
rne undertaking. They also allow
large sums as the value OF the com
pany's rights" in the streets Of the .
city.
PiIlsbury and Sangster do not agree
with them a. 20 such items.
Testimony in the Capital Traction
valuation was closed long ago, but
arguments were deferred. These ar
guments will be heard about the Same
time A. in the case Of the w. r. and
L, so that the commission may reach
its findings as TO both roads about (
the same time.