Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-07-04
". R. &E..T0ASK
SEVEN-CENT FARE
Company Committee Decides
to Ask Utilities Board to
Grant Flat Rate.
ALTERNATIVE IN VIEW

Petition for fiat increase in it's
rate of fare to not less than Z cents
will be filed by the Washington Rail-
way and Electric Company with the
Public Utilities Commission not later
than Tuesday or Wednesday of next
week.
r ThfK course has been decided upon
by Special committee of directors
empowered to deal with the financial
problem which threatens the dismem-
berment of the traction system.
Alternative Plan Possible.
As an alternative proposition, the
application may suggest that relief
be afforded by Inauguration of a
straight Scent fare on the lines of both
street railway companies
While no definite decision has been
reached on this point, it is understood
the management of the w. r. and e.
Co, is apprehensive that inauguration
OF six-cent fare on it's lines alone
would result in such material di-
version of traffic to the lines of the
Capital Traction Company as largely
to offset the relief hoped to be obtain
ed by the increased fare. However, a
seven-cent fare, it is believed. would
/! be sufficient to overcome any losses due
to diversion of traffic
, Early relief must be given the W. r.
and f. Co. or receivership for the
suburban lines and general curtail-
ment of service cannot be avoided, is
, the conclusion of the committee.
Early ~Unscrambling' Expected.
Failure of the commission to order
an increase in rates, it is believed in
n moi a OH will
scrambling" process starting by Au-
gust ].
At that time the City and Suburban
line, subsidiary of the corporation,
| must meet an interest charge of near
ly $4,000 on it's bonded indebtedness
The smaller company is close to
bankruptcy now. and the parent con-
Germ, it is plainly indicated, will not
be in a position to advance the in
terest payment to it, unless the COM
mission in the meantime provides
means of increasing the revenues of
the general system.
Two-Cent Transfer No Help.
The two-cent transfer charge au.
thorized by the commission has fall
en- far short of helping the company
out of it's financia lstraits, it was
declared today. Since this order
went into effect transfer passengers
have diminished by nearly 80 per
cent, with pay passengers recording
reduction of about per cent, the
company's calculations show.
Sought Relief Some Time Ago.
These figures were submitted to the
commission some time ago in the hope
that body upon its own initiative would
take steps to give the company addi-
tional relief, to the extent. at least of
enabling it to earn per cent on its
valuation.
In its valuation order the utilities
board declared the company entitled to
earn 6 per cent on a tentative finding
J of SIS. 100000, and estimated the trans
fer charge would increase it's revenues
to the point where this earning would be
realized.
dication of taking further action in the
matter, the company plans to go before
that body in a final, desperate plea for
aid that will be effective in preventing
it's threatened destruction.
Should receivership come. it is stat
ed. and the companies be thrown back
into separate arrangements. it not
only would necesSitate increased
fares on those lines but would mean
discontinuance of the through serv-
lines of the system.
Act of 1900 Is Cited.
According to officials of the COM
pany, the enabling act passed by
Congress, in 1900. under which the
merger was effected. gave authority
to the general company to charge the
rates of fare then existing on the
several lines Instead of taking adj
vantage of this. opportunity. it is
stated, the corporation established
one rate of fare and continuous rides
from one line to another Tor the SIN
gle price of cents.
The principal prop supporting this
arrangement was the financial as
sistance the company derived from
the Potomc Electric Power Company.
Now that the electric light rate has
been lowered the company's only
chance, it is declared, to maintain the
merger arrangement is to receive ad-
ditional revenue through an increased
rate of fare. If assistance of this
character is not granted the COM