The Washington times., 1920-01-17
W.R. PRESIDENT
ASKS CAR MERGER
Traction Head Pleads tor f.
nanciaI Relief and lndOrses
Proposed Plan.
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lieved OF the expense OF maintaining
crossing policemen. whose salaries
have recently been materially In
creased, from many IL not all OF the
expense Of new paying and mainte-
nance OF same, and also from the
franchise tax In the form OF per-
centage or our gross income espe-
cially while the company Is not earn
ing reasonable return on the value
OF Its physical property without any
allowance for the value OF the fran
chise.
Would Fix Terms.
at seems reasonable that a merger
OF the railroad properties OF this
company and its subsidiary companies
with those OF the Capital Tractioh
Company should be brought about
with advantages TO the public ana
fairness 70 security holders.
"Such a merger. however, In tie
Judgment of your president, should iu-
clude the railroad lines pr our COM
panies and the Capital Traction Com
pany located within the State of Mary
land as well as within the District of
Columbia and should be combined
with a plan for service at cost guar
anteeing reasonable return upon
the investment and at the same time
lnsuring the car rider service at ac-
tual cost"
According TO the report the equip
ment OF the company is in much bet
ter condition; the company Is .oper-
ating with fewer detentions and accy
dents, are getting and holding a bet
ter class OF employees, and are re-
| ceiving, II is believed, a degree OF
! cooperation from the public which
| has not been obtained for some time
past
Asks Liberal Policy.
President Ham says he hopes in the
| future that a more liberal policy will
be demonstrated toward public utli-
| ties in the matter of fair return on
valuations.
The railway president says the
company cannot stand still, but must
| make progress with the community
| and stagnation.
There is no way to finance needed
| and extensive improvements TO the
company while the credit of the com
pany is at such low ebb due to in
sufficient revenues, says the report.
The report tells Of the Utilities Com
| missions valuation OF the compfny,
and states IL is unreasonable and in
| adequate. Commissioner Gardeners
uissehthS opinioh on inc NaiudtIoh
tfs quoted.
It is pointed out that the wages Of
motormen and conductors have taken
| great increase. which accounts
largely for the failure Of the company
to make sufficient revenue on the
| present rate Of fare.
During the past year President
Ham asserts the company failed by
| 81 900 900 to earn the 6 per cent re-
| turn on investments adjuged by the
Utilities Commission to be a fair re-
turn. The report says the public is
getting service below cost.
Gross EarninEs Of Road.
Gross earnings of the w. r. & z.
| for 1919 increased over 1918 from
81 ,O35, 1891 to s9,OO3.9 .9197E Miscel-
| laneous income for the same period
| increased S3S.549.69. making a total
increase in gross income of $2,0O6,-
| 969.4S. Operating expenses increased
from So, 15O, ,961 go in 1918 to s7.242 293
| in 1919. The surplus income for 1919
was 1891 ,615.75, as against S6I4,111.10
for 1918, making a decrease of S292,
! 1885. The total profit and lost def
cit for the year 1919 amounted to
S170. .s9439.
THE Potomac Electric Power Com
pany has increased its electric light
and power customers from 37,757 to
Al, ,557, an increase of $500" the report
says. The output of the Benning
plant was 204 00S647 XIV. hours. 1SC
greater than ever before. The older
plant at Fourteenth and + streets, is
| now used almost exclusively for fur
| nishing of steam heat to Government
| buildings. To meet properly the de-
| mands of its customers, the Potomac
Company has gone forward through
out the year greatly expanding its
plant. A new 10000 X. W. turbine
| has been installed. together with
necessary boilers and other equipment,
including additions to the power plant
| building. additional apparatus in the
substations, and extensions to its dis
| tribution system.
"The total capital expenditures OF
| the Potomac company for the year