Evening star., 1920-02-10


under Cog In q pretty hard fight
Mr.. Ham laid before the committee
o mass of statistics showing that tne
Washington Railway ana Electnc
Company only had not benehtsa py ),
now has $535, 900 less net income 70
meet it's expenses. with an interest
charge OF $4,000 greater on account
81 capital expenditures.
How the National war LABOR boa.o
nut an Increased burden on tha Wash
fnKton Railway and Electric Company
by deciding that street railways were
an essential industry and deciding
cases which allowed "a revolutionary
and extraordinary" increase in rates
Of pay which had to be met by the
local companies was also impressed
upon the committee by Mr Ham
He showed the committee that his
company has been operating on less
than per cent return on the net
value Of It's property as determined
by the Public Utilities Com lssion'
and that wages have gone up 125 per
cent He sad that with the incr
allowed by the commission the com :
-pany is earning only about ~ per
cent on it's property IN tne DiS'i1'
on the commissions valuation: -
Taking all of the companies. IN
cluding the Potomac Electric fo"ef
Company. the W. X. & r. 60. mas ear :,
ed less than per cent on its stocA'
said Mr. Ham.
says Fare should BE Same.
He discussed with the commlttee
the position of the commissioners
that the fare Of the two companies IN
the interest of the public should be
the same. He pointed out that the
commission had Tuled against meas
ured service or the gone system as
unproftable, and had also ruled
against allowing the w. K r.. Co.
TO use the earnings OF the Potomac
Electric Power Co. and TO increase
the rates for power. ,-,,.o,
Mapcs in regard to the coming sEs-
tenn. He said that there was grave
objection to it on account OF IT'S oeiae
unpopular. and admitted that II han d
tendency to increase congestion Win
in the city He said, however. that
nc believed it would be Il sensible way
of overcoming the difference between
the Two street railway companies IN
Washington. pointing out tha' I.
would affect only two lines OF tne
Capital Traction and ten lines OF ,ne
Washington Railway and Electric
companies.
Chairman Mapes questioned whetn-
er 1t would not mean stin fare IN
outlying zones. Mr.. Ham said that
this should not be done. and assured
the committee that it would be I'M
possible to make the suburban rates
service. He said that only part OF the
difference in earnings between the
two companies could be paid up under
the zone system. On account Of the atu-
tude of the Public Utilities Commits
sion in ruling that the zone system
would be unpopular with the public.
and the proposal to use power com :
pany earnings to supplement those OF
the Washington Railway and Electric
was unpopular with the commission.
$50 they have turned to a system OF
equalization through taxation. Mr..
Ham said.
Explains Company's PrOpOsals-
He thought that the two proposals
made by his company for relief from
the per cent gross earnings tax and
relief from the cost of maintaining
crossing policemen would give his
company about " per cent on the
valuation as made by the Public Util-
ities Commission. This. with the pres
ent earnings of less than 81. per cent
would give a return of about per cent.
He thought relief ought to be given also
from the burden of new paving.
When the District of Columbia puts
on burden, not for our good. but for
the good Of the citizens. we should be
relieved" he said. But when We tear
up paving to make repairs. or when
the operation of our road makes paw
ing repairs necessary. the burden
should be on us.
In discussing the question of tax
relief. he said that the tax is really
on franchise which is not now yield
ing any returns. The Commissioners
IN making their returns did not esti-
mate any value on the franchise
therefore he felt that to levy a tax on
the franchise was not fair Before
we can get relief through the courts
our company will be destroyed" he
said The commission does not give
entitled
He ealled attention Of the commit
tee to the fact that the Public I@tiI
ities Commission says the suburban n
unes mu"t be operated in the interest
OF the public.
IT You want these roads operated
N the l1hlie interest you mus; give
them enough to live on through a
reasonable fixed rate" Mr.. Ham said
ana he quoted the public utilities act
he said lit would be a catastrophe TO
tne District and to Maryland If these
companies should cease to operate
He said that II would be unjust 70
70 the employees when the cost of liv-
ing has tone up. When the cost of
operation has gone up an increase
must be allowed in order that the car
.anes me MAY get enough to live on. He
will yet be glad of the integrity of
the Washington Railway and Electric
system. IL preserved
Discussing the tax provision in the
District Commissioners bill, Mr.. Ham
sa1d 1t was unduly drastic He said
1t does serious injustice to begin to
take ~ay the net income at 6 per
cent, and is dangerous doctrine for
Conslk to announce.
He said that the tax should not be
ievfed before the company had earned
per cent at least and then the levy
ehould be much less than so per cent
The bip as drafted calls for a so per
cens,fex between s and per cent
earnings and IS per cent starting at
2 per cent earnings He said Congress
must not create two poor companies
in the District.
Maryland situation Discus.ed.
Discussing the Maryland situation.
particularly with representatives Ben
son and Zihlman, both Of Maryland
who are both members of the com
mittee. Mr. Ham renewed the state
ment made in his annual report that
any merger should include the Mary
land lines. He said that the lines to
be taken over should be specifically
mentioned. because the bill as il now
reads would exclude the Washington
and Rockville Company. The condi-
tions under which these Maryland
companies came into the Washington
Railway and Electric system must be
protected. he said. In any valuation
OF these properties he asked for the
right of appeal. We do not want
the Public Utilities Commission as a
Gnz1 arbiter," he said.
He, also emphasized that it must be
shown how the Maryland lines are to
live. They must get their support
from the operation of the Washing
ton Railway and Electric Company as
one system with a reasonable return
allowed on the properties wherever
situated