Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-05-18
v. R. & E. MAY GET
TRANSFER CHARGE
Commission Considers Per-
uniting Two-Cent Tax to Re-
Iieve Financial Distress.
IMMEDIATE AID LIKELY

\ two-cent charge for transfers
doomed up yesterday as one of the
methods the Public Utilities Commits
sion may adopt for relieving the
financial distress of the Washington
Railway and Electric Company.
This with a possible revocation of
the commissions order for Scent
electricity. so as to restore the for
charged by the Potomac Electric
Power Company. is regarded in well
informed circles as a more likely so.
luton of the traction problem than
the coming of fares or granting of
fiat increase to either or both railway
companies.
That the commission may have
something in mind as to transfers
was indicated when Commissioner
Gardiner read from the transcript of
a former hearing testimony given by
William NICK. Clayton. representing
tions. to the effect that if intercom-
pany transfers should develop into a
serious financial burden upon the
companies the public would not OBJ
ject to a two-cent charge for trans
fers if necessary.
Mr.. Clayton stated, in answer to 4
question by Commissioner Gardiner,
that this still is his opinion.
Would Bring in $500, 900.
According to data on file with the
commission, the Washington Railway
and Electric Company is now handling
transfers at the rate of $4,000. 600
year. A two-cent charge would pro-
duce 100000, provided it did not have
the effect of decreasing the demand
for transfers. This amount would be
Just 100000 short of President Ham
estimate of the increase in annual
revenue required by the company.
But it generally Is agreed tnat a
charge for transfers would reduce by
at least Is per cent the number OF
transfer passengers hauled. This
plan of affording relief, therefore.
probably would not augment the
companys revenues by more than
$350,000 a year under the most favor
able circumstances.
President Hams statement showing
that the traction concern requires an
increase of 100000 in annual earn
ings to be able to give the public the
service to which It is entitled and to
meet its obligations contemplates the
payment Of dividends upon the full
capitalization claimed by the COM
pany.
Transfer Charge May Be Enough.
1t is suggested that the commission
may not agree with this figure after
It has completed its Investigation to
determine the fair value of the COM
panyS property for rate making pur-
poses. In such an event, the earn
ings from a transfer charge. it is said.
might be more than sufficient to en-
able the company to pay a fair re-
turn on the value Of its property as
established by the commission.
Pending the completion of it's valu-
alton inquiry, which will require an
other month, at least, the utilities
board. it is regarded as certain, will
give the company assistance of some
character. All Indications are that
the commission will not commit itself
to any far-reaching plan until the
valuation is completed. Temporary re-
lief may be given this week.
Aid Will Not Be by Zone Plan.
While the commission has in no way
velopments at the hearings last week,
including the statement .of MIR. Clay
ton, as Representative of the Fedora
ton of Citizens Associations, that the
federation recognizes the company
should be given some aid at this time,
are regarded as having clarified the
atmosphere and simplified the problem
considerably.
Those closest in touch with the sit.
uation believe the zone fare sugges-
ton is dead.
They do not consider it likely that
The commission will order fiat in
crease in fare for either or both local
companies at this time. To devise
some other means of affording tenn
porary relief would avoid the neces-
sity of deciding whether the fare on
one system could be increased with
out a corresponding increase being
yiven the other system.
Because the commission now has the
authority to impose a charge for
transfers and can, II it considers 1t
necessary, restore the former electric
light rate of 10 cents in order to put
the Potomac company in a position to
help the railway company. the opinion
developed rapidly yesterday that one
or both of these plans will be given
serious consideration by the commits
sion as temporary measures of re-
lief.