Evening star., 1920-03-23


tistics showing the operations OF the
Washington Railway and Electric
Company for four months ending Feb
ruary 20. The total operating income
for the system, including subsidiaries.
was placed at $1.77s. 1858, and the op-
Grating expenses. taxes and miscel-
ianeous items were figured at 1885,
1880, leaving balance Of $1S4.s90.49
available for the return upon invest
ment. without payment of interest on
bonds or dividends upon common or
preferred stock.
Points to Deficiency.
In citing the figures he noted that
during the four months there was a
deficiency in the operation Of the
Georgetown and Tennallytown and the
Washington-interurban lines. The
former failed to meet expenses by
S1l.25s.73. and the latter by s3SIS6.
income Of s554.s71.7I, which is a re-
turn Of - per cent upon the value Of
$l6,296.000 placed on our properties
within the District of Columbia by the
Public Utilities Commission" he said
and IT is $422.7SS.53 short Of the re-
turn OF per cent which the commits
sion has stated is the least we are en-
titled to receive"
Mr.. Ham said he wanted IL made
clear that the $40 per cent which
the company has earned during the
past four months on the present rate
Of faro is $40 per cent on the valua-
tfon OF the company's property and
not $40 per cent to the stockholders
He said this Misunderstanding ex-
listed among some people.
"Not Earning Fixed CharEes.~
The company is not earning its
nxed charges. not earning the inter
est on its bonds" the president Of the
road continued.
Mr.. Ham told the commission the
allowances 1t has made for mainte-
nance and depreciation are not large
enough. 1t is in the public's interest
as well as the company's. Mr.. Ham
said. that the railway property be
| maintained in good condition.
Mr.. Ham said the Washington Rail-
way and Electric Company has under
stated rather than overstated the cost
of track improvements.
At this point Commissioner Kutz
interrupted the witness to say that
the commission has not questioned
| the actual cost Of the improvements
| to track so much as it has the policy
of the company OF charging up to
| the rate Of faro the increased cost
Of replacing track under present ao., nno"'G con;
be capitalized rather than charged
| to the rate of fare. the Commissioners
said.
Mr. Ham replied that it is only a
matter of bookkeeping how IT Il
that the money has to be spent fou
| fares or. borrow it."
| Mr. Ham said that II the commits
| sion does not make allowance foi
expenditures for track improvements
they viii not be made. He said this
year the company plans to put in hrst-
! class condition 81 per cent OF the
sixty-four miles Of underground
| trankage and 2-10 per cent or tins
ake.
| During the next i've years. Mr.. Ham
said. the company expects to repair
the following percentages OF it'
! tracks:
Underground construction = 1921
1.72 per cent: 1924. $50 per cent and
| Overhead construction-1s21, 1 pei
cent; 1922. az per cent: 1928, pei
cent: 1924. s.3S per cent. and 1925.
per cent.
This is not an extravagant pro-
gram Of improvement" Mr.. Ham COM
mented. but the program OF q com
pany that Is sailing close to the
wind"
Gives Service at Big Loss.
| Il was at this point that Mr.. Ham
made the statement that during the
past twenty months the people Of Wash
I ington have been given service by the
Washington Railway and Electric
Company at $1.147.s6o.o7 less than
cost During the fourteen months
previous to November, when the
present rate of fare was fixed. the
company had rendered service fol
| $936, 565.S1 less than cost.
That service has been rendered
Mr. Ham continued, during a perioG
whom we paid our men high wages
So far as the public 10 concerned W,
have never failed. during that period
to give good service"
Mr.. Clayton. representing the Feder-
alton Of Citizens Associations, inter.
lrupted the witness and asked:
Wouldn't you have given better
service during that period II you had
earned the 6 per cent to which you are
entitled?"
| Mr.. Ham replied that service Nigh,
creased facilities are concerned.
| But the point / want to make" said
the president Of the road. lis that we
won't be able to continue to give the
| service we have been rendering II this
| thing keeps up. because we have gone
ahead as though we were earning the
money. Now, a man can put on a bold
front and live beyond his means for a
time. but he can't keep It up sindeh-
nitely.
ton has made his speech. that the pub
lie of Washington wants this company
| than cost"