Evening star., 1920-02-12
Representative Romiue at
Hearing Claims Service Is
for Government.
DIFFERS FROM SITUATION
ELSEWHERE IN COUNTRY
Mr.. Syme Argues No Other City in
Country Has One Great Estab-
Hshment as Center.

The fact that the street railway
companies in Washington are in real.
fly serving the United States govern
ment, through affording transporta-
ton to government employees. and
that therefore. they are entitled to
Gifcrent consideration from street
railway companies in any other city,
was emphasized today by Representa-
tive Romjue of Missouri at the hear
jlg la fore the House District COM
n,ittee on the merger bill.
Former Corporation Counsel Conrad
j. Symc also laid stress on the fact
that there is no other city in the coun-
try which has one great establish
meut about which all the life of the
community revolves as here in Wash
ircton. the seat of the national gov
ernneHt. This must be taken into
cons Iteration in any legislation look
ing TO z settlement of public utility
problems. and especially as regards
the street railways, he told the COM
mittec-
After having given an illustration
from zone experience, regarding the
benefit that business houses in the
District receive through the street
railways bringing the people to their
DOORS. Mr.. Syme also impressed upon
the committee that the street railway
companies ought not to bear alone the
burden of thus sustaining business
and building p.real estate values.
Representative Benson of Maryland
insisted throughout the hearing that
the Washington Railway and Electric
Company should be allowed a rate
which will give il a fair return on
the fair valuation as determined by
the Public Utilities Commission.
AT the opening of the hearing to-
day attention was switched from the
District Commissioners bin designed
TO promote merger through a tax
system which would more nearly
equaiize the earnings of the two street
railway systems.
Heard on Romjue Measure.
At the request of Representative
Romiue, Edward r. Williams, chair
man of the allied trades organisations
in the bureau of engraving and print.
Ing. and also representing other gov
ernment employees. and Corporation
Counsel Syme were heard on the
Romjue street railway bill. 1t was adj,
mitted that this bill was drafted by
Mr.. Syme at the request Of Mr.. Viii
liams, based on newspaper state-
ment by Mr.. Syme regarding; what he
thought was the best way to solve
the street railway problem. %
Mr.. Williams presented to the COM
mittee petition from government
employees. accompanied by statements
regarding the operation of three
other schemes OF street railway serv-
ice. One of these is the Philadelphia
plan, which. he said. was in profitable
operation on a 5-cent rare; the second
is the Cleveland service-at-cost plan;
the third is the plan of Mayor
Cousens. recently adopted in Detroit
Points to Cost to U. 8. Workers.
Mr.. Williams pointed out that the
street railway fare in the District of
Columbia means necessary expense
of s45 to $S6 year to each govern
ment employe in order that he may be
able to be on hand to do Uncle
SANS work.
He said that the government en-
ployes favor the passage of 1egisla-
tion to merge the two companies on
terms that will assure stable service
He said they support the Ronjue bill.
This petition was signed by Edward
r. Williams and Matilda Lindsay. rep
resenting the bureau of engraving
and printing employees: Gertrude Nc
Nalley. representing the federal en-
League; Herbert T. Leaman, repre-
senting Washington navy yard en-
ployes; William J. Hendricks. repre-
senting government printing office
employees: William Nick. Clayton. for
the Brightwood Park Citizens Asso-
citation; Nora A. James, president OF
No. 105. Woman Employees; William
D. Clark, representing the plate
printers. and William H. Keller.
Mr.. Syme admitted that the Romjue
bill. which was drafted by him, is
"crude." He said it was drawn carrier
than the Commissioners bill. in order
to get before the people some sugges-
tion as to how the street railway
problem in Washington might be
Mr. SWINE reviewed the condition as
it already has been repeatedly out
lined to members of the committee by
the District Commissioners, former
Commissioner Gardiner and William
F.. Ham, president OF the Washington
Railway and Electric Company.
Discusses "One" DimcuIty.
Mr.. Syme said that one important
difficulty is the viewpoint of the Sc
curity holders of the Washington
Railway and Electric Company. They
seem to have an idea, he said, that
Congress is under some obligation to
hold up the values of their securities.
They are expecting something impos-
sible he said.
Until the court has ruled upon the
public utilities commits ission'S valuation
of the street railway property, there
can be no solution, he believes, be-
cause until that time there will be no
stable basis for either company. He
emphasized that the difference be-
tween the commi iSSiOn'S valuation and
the valuation claimed by the COM
panies is considerable. In the case of
the Washington Railway and Electric
Company it is about 10000, 900, and in
the case Of the Capital Traction Com
pany about s3.000,000. He said one
important phase of the matter was
that the production capacity of the
Washington Railway and Electric
Company is out of all proportion to
its valuation.
Chairman Mapes and other m Members
of the committee discussed with Mr..
Syme the question of whether a fair
valuation of public utilities for rate
making purposes would be a fair val
uatior for sale of the property. He
said he could not conceive of any such
thing as a market value for the street
railway company. because it could not
be sold except by authority of Con-
greSS.
Relieves Court Will sustain.
Mr.. Syme said that he is confident
Justice Gould will sustain the conten-
lion of the Public Utilities Commission
that the fair value of the public utility
IS the amount of money honestly and
J'rudently invested in the property. He
believes 1t was intended that the COM
panies should make a fair return on
their investment, but that it was not
intended that they should speculate
ppon it.
II reply to a question by Representa-
kContinued on PaRa . Column a.