Evening star., 1919-04-19

washington Railway and Electric
company system; the actual cost of
the companies to the parent company
and reproduction cost estimates.
In this connection he took issue with
the methods followed by the Public
Utilities Commission to ascertain the
value of the company's property for
rate-making purposes In determin-
ing historical cost, the commissions
experts. he stated, have considered
only the original cost of property now
existing
The company's position he said, is
that it should be given credit for
every dollar expended in developing
the property. Also, it contends that
money lost in developing the enter
prise up to the time it becomes prof
liable should be included m capital
account
Inquiry Regarding Strike Cost.
At this point there was an in
terrogation from the floor as to
whether Mr.. Hart thought the pub
lie should pay for the strike losses in
IVY. previously stated by the speaker
to have been in the neighborhood of
S6OO.0OO. His reply was that this cost
was met out of a surplus existing at
that time and was not charged to
capital account.
In beginning his answers to the
nIty-n1ne questions asked by the fed
GRAFTON, Mr.. Ham stated that none of
the queries related to the financial
condition of the company or to the So
tuition OF its financial difficulties. He
then read from his statement to the
utilities commission during the recent
rate hearing, in which he declared that
the time had come when there must be.
decision as to whether the company
! is to be given sufficient revenue to en-
able it to function or by being denied
assistance, prevented from meeting it's
obligations.
This emergency condition results
from 100 per cent increase in operat-
ing costs and Is per cent increase in
revenue, he declared.
Fails to Meet Fixed Charges.
The company is now failing by
about $28S.OO0 year to meet it's fixed
charges. he asserted. 1t is earning
but II per cent on its stock.
Answering the question of why the
street railway industry generally
faces bankruptcy, about sixty COM
panies already having gone into re-
ceivers' hands. he said. the traction
concerns made the vital mistake of
trying to furnish service at a uniform
cost. regardless of the amount.
No other business enterprise would
attempt to exist on such a principle.
and the street railway industry is now
turning to measured service. as. the
only equitable relief in sight.
There is no greater obligation on a
company to furnish good service than
there is on the public to pay for good
service, Mr.. Ham continued.
Questioned as to whether an. in
crease in rates would be followed by
better service. he said that the matter
Of service is in the hands of the utili-
ties commission, which governs 1t
through regulations. 1t Is not natural
to expect starved cow to give good
milk, he suggested.
Mr.. Ham said the company had never
disobeyed an order of the commission.
AS proof of its desire to furnish good
service he referred to it's purchase of
approximately a million dollars worth
to pay as high as s1a per cent for the
money it borrowed for this invest
ment.
Reason for Asking Increased Fare.
The public was reminded also that
the company had not complained at
carrying the suburban lines at a loss
as long as the more profitable lines In
the system reahzed sufficient earnings
to make good the deficits. 1t is asking
for relief now only because there is
not sufficient money being earned by
the system to meet its fixed charges.
Many data of g. statistical character
were called for by the federation and
presented by Mr.. Ham in his answers.
Indicating the cost to the company of
intercompany transfers, Mr.. Ham said
he had analyzed the transfers received
on April at Wisconsin avenue and
NJ street. The number collected on
northbound cars was 1.277. Under the
old Georgetown and Tenleytown du-
plex tickets that company collected
at this point an average of 341
day. Comparison with the present
system shows that the Georgetown
and Tenleytown line is now losing
$S.52 a day and the Washington Rail-
way 1850, or a total annual loss of
100000.
"This is really the only point at
which an analysis Of the cost of the
intercompany transfer can be made,
and it shows very clearly the expense
of this transfer" Mr.. Ham said.
Question of Number of Cars.
In reply to a question as to whether
it would be possible to operate more
cars during rush hours over 9Th
street between F and G streets, Mr..
Ham said recent observations indicate
a car crossing the 9Th and F street
intersection every eleven seconds, and
it is not thought possible any ap-
preciably greater number can be put
over this intersection.
The company during March operated
many more cars than during the cor
responding period of last year, he
continued. For example. on March 25