The Washington times., 1919-09-08
scent FARE
FAVORED BY
TEB0ARD
Utilities Body win S,sarch For
Undue Operating Costs of W.
R. and E. Line.
NJ BILL PRICE.


conduct a searching investigation into
the claims Of the Washington Rail-
way and Electric Company, when the
hearings begin. wednesday Of next
week. upon the petition Of that com
pany for further revenues.
having set a valuation Of $16,1O6.-
OO0 upon the properties OF that COM
pany. the commission feels in duty
bound to adhere 70 its policies Of al
lowing earnings of per cent upon
that valuation, or approximately
Se66.0Oo q year.
under lis decision in the 2-csnt
transfer allowance, the commission
estimated the company should clear,
above operating expenses, about $780,
600 q year o. an estimated valuation
Of S15,OO0,0O0. ~
The company several months ago
came forward with the claim that IL
was falling short Of earning 5000, 900
by more than $500, 900 year; that it
was entitled TO more revenues than
provided for, but would be glad IL IL
could collect the full 100000.
Wish 20 Held Scent Fare.
The commission IS earnest in its de-
sire to hold street car fares in the Dis
tffct at cents; but to DO this and fol-
low its per cent return policy il
mast show conclusively that the
Washington Railway and Electric
Company is now earning sufficient
money to net this return on q scent
fare. The operating expenses Of the
company will be scanned very closely
TO see IL IL is not possible to reduce
them, thereby increasing the net re-
turn.
sTr-v. A a 1911. 4. ,ns,,..
operating expenditures, or TO show
that the roads returns are Increasing,
the commission will be compelled, it
IS admitted. 70 take steps toward in
crstsing the revenues to about $3.50, 900
a year after all operating expenses
{ are paid. Having found a certain
Valuation. the commission sees 20 way
ether than ia ALLOW what II deems as
= reasonable return The commission
has decided that IN peace times the re-
turn ought 70 be about { per cent.
Because Congress cut 20 very low
figures the appropriations for hire OF
experts, the commission Is handi-
capped In employing q sufficient num-
Der OF men to make the investigation
81 desires.
The curtailmsnt Of appropriations
g considered unfortunate The reGu-
lar employees are good men and will
do the best they car to aid Conrad
syme, counsel to the commission.
City ana S1burBan Case.
One of the most interesting fea-
lures OF the valuation decision Of the
commission concerns the City and
Suburban line, used by many thou
sands of Washington people. Over e6
Der cent Of the $I,T50,O0O capital stock
Of this company IS owned outright by
the ". R. and E., but the company
never took the property in, as 1t has
had q right 20 do. The W. r. and =.
has recently claimed that the City and
Suburban lines have lost money in re-
cent years, and are seriously UnproEt-
able. The parent company went 50
car as TO defer the interest payment
on the S1,75e. 900 bonded debt due on
August /. and there has been talk
that when the three months Of grace
for hnai~payment are up the company
may skip payment entirely and permit
the bondholders to take such steps as
they see at in the courts.
VaIued. at SsJS4s,s5S.
The commission fixed the valuation
OF the City and Suburban lines in the
District at S2,S46,s7s, practically
81 100. .OOO- above the bonded debt
upon which interest payments were
deferred; indicating that the W. r.
and e is not likely to let this valu-
able part Of its system fall into other
hands. The commission considered
the City and Suburban more than one
fifth as valuable as all the other prop
critics OF the ". r. And Z. combined,
The ". R. and e. valuation being a1z,-
557,S47.
The City and Suburban valuation,
loo, Is OF the lines in the District
only, and does not include over eigh-
teen miles OF trackage in Maryland.
also part OF the property. That road
lWns no cars or electric power plant |
nd the value is OF roadbed only.
The total traciIaGe OF the City and /
Is 24342 miles In the Dis
,rict and 1885 In Maryland; the lat
er being almost as valuable as that
n the District One lire runs from /
and G streets northwest to 1
Thirteenth and D streets northeast,
With connections from First and G
.tfeets 10 Stanton square and return
0 Third street. Another line is from
gorth Capitol street and Massschu-
etts avenue to Brookland, with a
hort line running from Fourth street
nd Rhode Island avenue to Michigan
venue northeast The main line runs
rom Fifteenth and G streets TO Lau-
el. Nd.