The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1919-07-23
BANKERS AND
KUTz DISCUSS
WRECO PLANS
Committee Soon to Decide on
Methods Necessary to Cure
Traction COmpany'S Ills.
By BILL PRICE.

By BILL PRICE.
Col Charles w. Kutz. chairman Of
the Public Utilities Commission, today
conferred for more than an hour with
Col. R n. Harper, w. T. Galliher, and
c. w. Warden, a subcommittee from
the protective committee of local and
outside bankers who held 81, $50, 900 OF
common stock of the Washington
Railway and Electric Company as
collateral for loans.
These loans, aggregating about ST.
100000, were made years ago to the
Washington Utilities Company, orig
inally organized to obtain control Of
all the public utilities OF Washington,
but compelled to abandon such com
prehensive plans upon the passage by
Congress of the La Toilette bill for
bidding one corporation from obtain
ing q controlling interest in another.
So long as the W. r. and E. was able
to pay interest upon its common
stock, this money was applied to
meeting the interest on notes given
with the stock as collateral. Upon
failure to continue dividend payments
on common stock there was conse-
Quent failure to meet interest pay
ments on notes.
Local Men Control.
The banks holding the notes and
stock, after numerous conferences 5,
finally agreed upon a protective com
mittee, q majority Of the members
II which are local bankers, although
the bulk Of the loans were made by
New York and Baltimore banks.
Because the local bankers know
the local situation best and are IN
position to help solve the tracttcn
mix-up in Washington, outside bank
ers readily acQuiesced in practically
Swing control to the local men. Col.
2. N Harper is chairman OF the full
committee.
The subcommittee, in conference
today with Colonel Kutz. who was
later Joined by Commissioner Gardi-
ner, Is one Of three subcommittee,
all Of which Will report to the full
committee at q meeting to be held to-
morrow night. The subcommittees
are charged with obtaining informa-
ton as to the affairs Of the company
what Il needs and thinks 1t must
lhavS-and the situation before the
Utilities Commission. Still another
phase Is the Washington Utilities
Company itself-its assets, IL any, its
ofncers, and its financial condition.
Conferences have been held with
President Ham. Of the railway com
pany.-
The fun committee of bankers will
nap cut q program it will present to
the Public Utilities Commission and
urge a. necessary to save the traction
company from wrsckage and for the
improvement Of service on all lines.
The policy to be pursued by the COM
mfttee will be determined tomorrow
night or at . later conference.
Rate He1tRGs Net SCI.
The Utilities Commission has taken
no action upon the last appeal OF
the Washington Railway and Electric
Company for further revenues. No
time has been set for hearings or
consideration, despite the urgent ma
ture OF the appeal for immediate ac-
tion.
The Utilities Commission is making
strong efforts TO complete the work
of valuations Of the properties of all
street railway companies by August
1, in the belief that the question of
fs res or rates cannot be settled prop
eriy until that body has arrived at
what il believes to be correct con-
clusions on valuations. The recog-
nized practice all over the country is
TO base the returns a public utility
shall have upon q fair valuation of
it's properties, these returns being
6xed so as to permit reasonable re-
wards to the stockholders, if entitled
thereto.
In the order permitting a 2-cent
charge for transfers, the Utilities
Commission announced q tentative
valuation Of $4,000, 600 for the w. r.
& z, and a purpose to allow a per
cent return upon that, or a total of
100000 per year, after payment Of
taxes and all charges except interest
on bonds and stocks. The company
claims that il is not being allowed to
earn this and that the valuation is 50
low as to be utterly unfair.
SH-Cent Fare May Result.
There have been recent indications
that when the commission announces
its valuations formally there will be
an increase from SIS, 600 900, but the
total will hardly be as much as S2O.-
OoO. 900. The company claims a val
uation OF at least $4,000. O00 III
there is an increase in the valuation |
the returns allowed would be greater ,
than 5000, 900 and probably necessi- !
tate a fat fare of cents in the Dis !
trict without transfer charges.
This fare will, il made, have TO be |
uniform to both Washington Railway
and Electric and Capital Traction |
companies, although the latter is not
asking for more money. It would be |
expected to use increased net reve- !
nUes for extensions and betterment
OF servic.
The Utilities Commission is greatly |
DESTROYS OF providing further railway |
facilities to relieve congestion on the |
Fourteenth street and other down |
town lines. It is becoming absolutely |
necessary TO do this. A Seventeenth |
street line has been in contemplation |
a long time. The Capital Traction |
would find no difficulty in using sur
illus revenues for extensions and gen. /
earl improvements
wru SUzS EroR DTyoRCE-