The Washington times., 1919-03-03

its credit will be seriously impaired.
The whole physical condition OF J'e
company is bad Roadbeds need thou
sands Of dollars spent upon them. ~
rolling stock is in the worst sort Of
condition. New shops are needed
new car barns, new cars. Thirty-tWo
usable cars were lost in the fire at
the lexington car barn recently.
Funds necessary for restoration OF
the plant must be borrowed. Cred !
can not be had if the ability to pay
dividends is destroyed, it is claimed.
The passing of the dividend on COM
mon stock seems to be only matter
OF time anyway, as the Utilities Com
mission is not likely TO place a valua-
ton upon the properties Of the COM
pany sufficiently large to permit
revenues from the public to pay these
dividends.
Does Not Oner Remedy.
The petition Of the railway COM
pany does not pretend to offer reme-
dies, but simply declares that it can
not go on without financial relief.
Reduction Of expenses are practi-
cally out Of the question unless the
two competing railway lines could be
merged into one and salaries thus
saved. This, however, would not help
materially, in the present bad shape
Of things. Wages must continue as
they are. So there remain, ii is sug-
gested, three ways of additional reve-
nues, either or all Of which will cause
a great roar in Washington if ordered
by the commission:
1. Increase in rate of fare in
District
? Establishment of a zone sys-
tenn, by which the suburban resi-
dent must bear practically all the
burden OF raising the money.
3. A charge for transfers issued
by the company on its own lines
and a charge for intercompany
transfers, giving the ". r. and
E. the larger share of the trans
fer charge over the Capital Trac-
tion because Of the longer dis
tances its passengers are hauled.
No Increase in Flat Fare.
It is substantially settled in advance
that there will be no increase in the s.
cents rate in Washington. There are a
number Of underlying reasons but the
main one is this: The Capital Traction
Company is not now asking for financial
relief and may not have to do so. IT
would be impossible to have a scents
fare for that company and a scents
fare for the Washington Railway and
Electric. The public would practically
quit the Washington Railway and Elec-
tric, and its income under those circum-
stances would be less than now.
Then where is the money coming from?
The answer is that the Utilities Com
mission will be compelled for the present
10 restore the IO-cents electric light
charge 50 that the revenues Of the Po-
tomac Electric Power may swell the
revenues Of the Washington Railway
and Electric; increase heavily by a zone
system, the charges TO suburban resi- |
ients, thereby compelling them to bear |
.he burdens for the whole thing; or a |
decision that the public need not furnish !
'evenues that will enable a continuation (.
# the usual dividends on common stock 1
n even on the preferred stock
Any decision will be loaded with ,
trouble for the commission
Might Combine Revenue Sources.
A combination of revenue sources,
should the commission conclude the I
are entitled to relief, might !
iolve the difficulties-say the former
electric light charge and a transfer 4,
.harge.
The companies claim that a charge |
o transfers would be merely a drop
n the bucket and largely uncertain
n their results.
Members Of the commission have j
o far not been disposed to even con-
ideF a zone system of charges, say
ng that il would be unfair to sub
rban residents who went away from i
he center Of the city in the belief Il
hat they would obtain the same rates
( fare as city residents. n
The use of free transfers is increas- u
1g each day. When the free transfer
rder first went into effect the W. r.
nd z. took in about 2,5O0 transfers
rom the Capital Traction each day
he number has increased to close to
900 per day. This would dwindle
under a pay transfer de-
ision.