Evening star., 1920-02-11
POOLED EARNINGS
AND 10CENT POWER
URGED BY Mr.. HAM
Says 1t Would Solve Financial
Problems of Washington
Railway and Electric Co.
TESTlFIES AT HEARING
ON RAILWAY MERGER
81 ,O74, 900 Held by P. E. P. Co.
For Refund Would Restore
Roads Credit.

For Refund Would Restore
Roads Credit.
Should the price of 10 cents per
kilowatt hour for electricity be sus-
/ tanned by the courts. and should Con-
gress allow the earnings of the WASH
inEton Railway and Electric Company
and the Potomac Electric Power Com.
pany to be pooled, it would solve the
financial difficulties of the street rail-
way company without a further in
crease in street car rates. said Will
! liam F. Ham, president of the Wash
i.igton Railway and Electric Com
! pany, before the House District COM
mittee at the hearing on the railway
merger bill today.
| Mr.. Ham called attention to the fact
| that the Public Utilities Commission mas
held that the earnings of the street rail-
way company cannot be pooled with
those of the electric power company.
| though all of the stock in the latter
corporation is held by the Washington
Railway and Electric Company. The
commission also has ordered the price
of electricity reduced from 10 cents per
kilowatt hour to cents. and though
consumers are now paying the higher
| figure the additional cents Is being
set aside SO that it may be refunded the
consumers should the courts hold the s.
cent rate legal
Fund Now sI.O74.OOO.
| 1t was brought out that this fund
Electric Power Company now amounts
| to $1.074.000. which would just about
offset the shortage Of the Washington
Railway and Electric Company and
would restore its credit. With the
! rates for electric power restored to
I 10 cents per kilowat hour. the combin-
ed earnings of the Washington Rail-
way and Electric Company and of the
Potomac Electric Power Company
| would give the parent concern suffi-
cient income to live upon.
This summarizes the admissions
| made by Mr.. Ham in response to in
| sistent questions by members of the
committee and especially by Chair
| man Mapes.
Mr.. Ham empha sized that by such
course Of procedure there is no In
| tention to place an undue burden upon
the users of electric power, but would
be insisting upon their carrying their
fair burden. tr
The Potomac Electric Power COM
pany could not operate at It's present
efficiency and as profitable COM
pany. but for the fact that 1t was
built up with its own finances pooled
with the finances and credit of the
comnany Gasnans.'n 1t. Hs siiisissss u Nm
is due to the fact that the washing
ton Railway and Electric Company
furnishes a steady use OF its power
| where there are no other large indus
! trial users. 40 that IL the WASHINGTON
Railway and Electric Company as
system is forced to disintegrate. be-
! ing financially starved to death, the
Potomac Electric Power Company
could no longer operate efficiently an
at present, Mr.. Ham said.
/ So that IL the Potomac Electric
| nv,Ar
separately there would he no question (
of the 10-cent rate beirg too high:
there have been no protests against
that rate. the reduction being solely
| tiles Commission. Mr.. Ham sad. to
/ prevent the Washington Railway and
Electric Company from ENJOYING thts
source of revenue which 1t needed
take the burden that should be on
| the power consumers. he sail and
place it on the car riders!
Doubled Tax on Public.
He brought to the attention Of the
| committee the fact that the Public 3
Utilities Commission in endeavorins
to overcome the difference in earning
power between the two street rail-
way companies really doubled the tax
upon the public who use the stree. cars
For example. he said. u the wash
| ington Railway and Electric Com-
! pany was short $500.000. and went TO
the Public Utilities Commission for
relief the Public Utilities Commis-
sion would grant an increase In rates
not only to give. the washington
hallway and Electric Company the Z
$500. 900 needed. but to give the Cap
ital Traction Company $500.0Oo It did
not need. thus forcing the pubic 20 2
pay s1.O0o.0oO. where this could be
avoided by maintaining the old rates
of the Potomac Electric Power Conn
pany.
ment on the District Commissioner
hill designed to make 1t possible fof :
the street railways in Washington g
be merged.
In resuning his statement at the z
hearing today Mr.. Ham emphasizes
that the public must understand pri-
vate capital is not going to invest IN 8
public service corporations unless as
sured Of e fair return on the invest
ment. Unless the judgment OF the
Legislative body Is In iavor OF puDnc
ownership, or that funds shall be sup'
piled from public sources to make the
public utilities profitable, IT must %
made attractive for private capital 70
invest in these public utilities. Tnis
can be done only by assurance Oh
fair return. he said
Testimony Put In Record.
He put into the record much testf-
mony covering this point. including
a statement by Commissioner Clark OF
the Interstate Commerce Commission
and a report from the Philadelphia :
public utilities commission. The SUM
mary of this was that the operating :
company needs the money and the &
community needs the service.
He again emphasized that NO city
except New York has such an expen.e q
siye underground construction for the
street railways as in Washington-
This expensive luxury" he said. wae
ordered by Congress. He recalled that
Congress took drastic action in the old :
davs to insure this sort of under
ground system. The street railway &
Comma anies had to send men abroaQs
particularly to Budapest, to md ouS
about such a system.
In reply to a question by Chairman s.
Names as to whether the national - M
District government stood any part 81
this expense, he said they did not
subjects Not Cenparable.
Chairman Mapes asked whether that IS
was not more drastic legislation by Con-
press than it would now be to compel y
merger OF existing lines. Mr.. Ham sat1 +
that the two subjects hardly are cozn<
narable He explained that Congrex1S
always reserved the right to specify tn q
type of construction and methods .o(<ks
operation. Mr.. Mapes brought out thai s
this new legislation by Congress ha@& ~
made the entire traction structure the4 Z
existing worthless. and that recapitaHe x
zation was necessary. ~.
Mr.. Ham referred to testimony by IL
Commissioners in reply to questions 49,
So what other public utilities comrss