Evening star., 1920-01-23
v. R. T. LINE MUST
DEFERPAYMENT

The City and Suburban line. one of
the subsidiaries of the Washington
Railway and Electric Company. will
be unable to meet an interest pay
ment of $43,750 on its first mortgage
bonds. which falls due February 1, 1T
became known today.
Although the payment is due Febru-
ary L. the company will have three
months of grace, which means that
the interest will have to be paid by
May 1.
William F. Ham, president of the
Washington Railway and Electric sys-
tenn, pointed to this inability of the
City and Suburban to meet its IN
terest charges as further evidence of
the urgent need for a Seven-cent fare
Immediately.
Sees Need of 7-Cent Fare.
Asked if he thought the company
could get along without the increase
while Congress is considering the
a merger of the two companies pos
sibIe, Mr.. Ham said he did not think
so.
"When we made our recent request for
a seven-cent fare" said Mr. Ham. we
knew the Commissioners were consld-
ering some street railway legislation
and we hoped they would, but we
pointed out in the petition the serl-
BUSINESS of our situation"
Accountants of the Public Utilities
Commission are still engaged in an eX-
animation of the books of the company
for the period since the four-tickets-for-
a-quarter rate began and as soon as
their examination is completed the COM
mission will cnsider the application of
the company for a 7-cent fare.
Expenses Exceed Earnings.
According to Mr.. Ham, the operating
expenses of the City and Suburban dur
ing 1919 exceeded its earnings. In Au-
gust of last year the City and Suburban
found itself unable to meet the interest
on it's bonds. Before the three months
of grace expired in October, however.
the commission granted the four-ticketS-
for-a-uuarter rate, which enabled the
Washington Railway and Electric sys-
tenn as whole to meet the payment
The City and Suburban is the line which
runs from the Treasury to Laurel and
other Maryland suburbs between those
points
Mr.. Ham said today that he has ac-
cepted the invitation of William NICK
Clayton of the Federation of Citizens
Associations to attend the conference in
the boardroom of the District building
tomorrow night to discuss the street car
situation and the several bills which
have been drawn up to bring about a
merger
Engineer commissioner hutZ, chair
man of the Public Utilities Commission,
also has agreed to be present George
f. Hamilton, head of the Capital Trac-
ton system, and Representative Rom
jue, author of one merger bill, also have
been invited.
The conference will be made up of the
utilities committees of the thirty-five
associations which make up the fedora
ton and the purpose is to gather in
formation on which the, federation will
decide which merger bill it will support
See Merger Prospect as Bright.
There was feeling among the civic
leaders of the city today that the
street railways are brighter now than
ever before. 1t is generally recog-
nized-by District officials and mem
bers of the citizens associations that
Congress cannot compel merger ex-
cept by government ownership, but
the consensus of opinion appears to
be that the companies will willingly
merge if it can be arranged on a basis
fair to the security holders of both
systems.
AS one District official put it today,
"there is no difference of opinion be-
tween the companies as to the ad-
visibility of a merger, but only as to
the basis upon which it should be
brought about"
The Commissioners believe that the
change in taxation provided for in
their bill will bring the earning power
of the companies nearer to level and
thus make merger more likely. The
present difference in earning power is
regarded as big stumbling block to
ccxa0plidation.