Evening star., 1920-03-23
ZONE FARE SYSTEM
TO Be CONSIDERED
ASW. R. T. RELIEF
President Ham Tells Com
mission Company Lost Over
Million in 20 Months.
THREE PLANS SUGGESTED
TO SOLVE THE PROBLEM
Two Others Are to Increase Elec-
trio Light Rates or to
Raise Fares,

That establishment of a zone sys-
tenn again will be considered by the
Public Utilities Commission as g
means of relieving the financial con-
dition of the Washington Railway
at the opening session today of the
bearing on the application of the w
Il. & E. for higher fare
William F. Ham. president of the
company, went over in detail the
financial condition of the company
and presented figures to show that
during the past twenty months the
company has rendered service at a
loss of more than million dollars.
Mr.. Ham made il clear to the com
mission that the company cannot long
continue to give its present standard
of service unless it is granted further
revenue.
The boa rdroom was well filled with
spectators. furnishing evidence of the
interest of the public in the question
of what the fare is to be after May 1.
VIII Cover "Brond Scope
Commissioner Kutz during the con-
cluding minutes of the session an
nounced that the hearing would be of
a broad scope" and would consider
every possible means of relief
This brought the zone system to the
center of interest. Commissioner Kutz
instructed President Ham. for the
Washington Railway and Electric
Company. and Vice President Hanna,
for the Capital Traction Company, to
prepare suggestions of specific nature
regarding the results of the establish
ment of such system, indorsing a
suggestion that the boundaries of the
zones be considered. An immediate in
"a N m n-f be- IN
ditions was promised by the street car
company officials
The three methods of relief inti-
mated during the testimony were: The
establishment of zone system: the
increase in rates of electric light
users. and the fiat increase in fare on
the two car systems. Another possible
method of relief suggested was relief
by reducing taxation of public utili-
ties.
zens' associations to the estabiish-
ment of a zone system is expected.
j. II. Hanna. general manager of
the Capital Traction Company. reply
ing to the suggestion Of the commis-
sion that plans for zone system be
system should only be introduced
after careful consideration.
The Capital Traction Company is
not petitioning for an increase in fare
at this time and took part in the pro-
ceedings today by direction of the
commission.
Emphasizes Need Of Relief.
Attention to the impoverished con-
o:tion of the Washington Railway and
Electric Company was called several
times by President Ham during his
testimony.
rs this commission going to con-
tinue to hold these utilities to a 6
per cent basis?" inquired President
Ham shortly after outlining the con-
dition of the company. 1T means
possible ruin. The position of the
commission has placed the company
in a position that has almost de-
stroyed credit. We went through the
strike and the war. and after the
armistice were able to borrow money
at reasonable rates.
But we have knocked at the doors
Of the commission throughout 1919, and
during that time we passed our pre-
ferred stock dividends and our COM
mon stock dividends. And today at 6
per cent bonds are on 12k per cent
basis. We are facing default on the
City and Suburban mortgage bonds, and
have just about gone to the limit of
our ability to hold this system to-
gether"
Shortly after President Ham made
this statement the session adjourned
until 10 o'clock tomorrow morning.
Move to Limit to W. r. f. Lost.
Immediately after the reading of the
application of the company for the
William Nick. Clayton. representing
the Federation of Citizens Associa-
tions as chairman of it's public utili-
ties committee, moved abrogation Of
the order making the Capital Traction
Company and suburban railway COM
mi Iy,N1 Ind inc fha Uyo ri 4
Virginia Railway Company and others,
parties to the hearing.
After reading direct from the Public
Utilities Commission act sections
tending to show that parties to be
considered in a hearing by the COM
mission should be either applicants
or opponents of applicants Mr.. Clay
ton declared that he could see "in law
no right to bring into this case other
companies than the one applying for
register objections"
Commissioner Kutz overruled the
rotion, declaring it to be the opin-
ion of the commission that it was we'll
within its rights in making other
companies parties to the hearing since
all enjoyed the raise in rates by the
last order of the commission.
Notes an Exception.
The commission will please note
an exception" replied Mr.. Clayton.
Mr.. Clayton based his contention
upon the belief of his committee that
the increased fares would call for
more than S1.000.O0O from the car
riders of the Washington Railway and
Electric Company and a similar sum
from the Capital Traction Company
patrons.
He declared that both companies are
earning at the present time a return
of per cent upon the combined val
uation of more than $30.0O0,O 900.
Upon motion of the company the
pleadings in the hearing for the last
raise were entered into the record.
Mr.. Ham Presents Figures.
= President Ham then presented fig.
rres of the company showing a com.
parison of earnings for the company
Immediately prior to and immediately
November /. He said that followine q
slightly more than $4,000 per dav
whereas during October the average
earning of the company was slightly
loss than $500 per day.
He presented A mass of detailed fig.
ures showing the combined averages
Of The Capital Traction Company ant
the Washington Railway and Electric
, ompany with regard to pay passen.
gers and transfers, tending to show
the falling off of gain in passenger
traffic following the raise in rates.
One of the strongest points present
cd by the company was table OF sta
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