The Washington times., 1920-02-13
CAPITAL LINE
CALLED GOAT
Traction Company will Fight
Merger With W. R. & E..
President Says.

Charging that the Capital Traction
Company had been forced against its
will into the present street railway
Investigation ito be made the goat"
because of the shortcomings OF the
Washington Railway and Electric
Company, George II. Hamilton, presi-
dent of the former. served notice on
the House District Committee today
that his company would stand on its
constitutional rights and oppose any
such legislation.
demanded Mr.. Hamilton."-to con-
.ider a bill unfair in principle, and
wrong.
"We are brought here to be made
the goat because we are successful.
There Is no condition before you
that is attributable to the Capital
Traction Company"
Mr.. Hamilton said that 1--WE were
content with the scent fare with six
stickets for a quarter until the war
Labor Board decided we should make
a very positive advance in the wages
of our employees. 1t was not unfair.
because 1t was a fact that wages had
not been increased sufficiently to
meet the increasing cost Of living.
stood On Scent Fare.
After granting the wage increase,
the company was unable to live ON
the scent fare with 9 tickets Tor
quarter, and at the same time pay
the stockholders their 8 per cent.
1--WE went to the Utilities Commits
sion and asked for a flat scent fare
and 1t was granted" Mr.. Hamilton
continued
1--WE have not asked for a higher
fare; we have made no application
for a fare of more than cents.
The Capital Traction Company
would have been barely able" to meet
Its obligations to stockholders at the
nat scent fare, but would have been
content, Mr.. Hamilton said
Another road not SO successful
ssked for an additional increase and
it was granted" he said, not to that
company alone, but to tho Capital
Traction Company as well.
Earned Big Surplus.
The result was that in 1919 the
Capital Traction Company earned
above tho cost Of operation, taxes. a
8 per cent dividend and other charges
a surplus of about $400,0 200.
Mr.. Hamilton charged that at seems
from reading this bill that they are
Under the utilities commission bill,
now being considered, that surplus
would have gone into special fund
10 be used for the relief of the Wash
ington Railway and Electric Com
pany.
"It in fact was applied to writing
of part Of the losses that were en-
tailed on us by past Congresses" Mr..
Hamilton explained.
These losses represented changing
from horse cars to cable cars; from
cable cars to an underground sys-
tenn; from single truck to double
1--WE are not law-breakers" Mr..
Hamilton declared. There is no
claim that we have failed in the
slightest degree in performing the
work Congress created for US to per-
form.
what arc you going to do with
us?"
Cites Efficient Management.
Mr.. Hamilton denied that tho Cap
ital Traction Company has prospered
because Of location. 1t has been due
to efficient management of strong,
healthy, well regulated concern that
has always met every obligation i'm
posed, he declared.
Look into the question or loca-
ton" Mr. Hamilton invited, "and you
will find that the Washington Rail
way and Electric Company has sub
urban tracks as well and favorably
located as the Capital Traction Com
pany.
-The gross earnings show that we
get more, in comparable territory than
the Washington Railway and Electric
Company"
To a considerable extent Mr.. Ham
ilton said, people will use his lines in
preference to those of the Washing
ton Railway and Electric Company.
Mr.. Hamilton went into discus
sior of the history of the Capital
Traction from the time In was ere
ated in 1885, when the Rock Creek
Railway Company purchased the
Washington and Georgetown Rail-
way, down to the present time The
average dividends during that period,
it was shown. have been 81 per cent
Questioned by Mnpes-
Chairman Mapes of the House Com
mittee asked Mr. Hamilton II the
act of Congress authorizing the pur-
chase of the Washington and George
tow nrailway would not also permit
the Capital Traction Company to ac-
auire the Washington Railway and
Electric Company.
-The courts have never determined
this point" Mr.. Hamilton said, "and
IL has been a mooted question among
lawyers here"
Mr. Hamilton contended that an in