Evening star., 1921-01-15
OF WIRE.
t. HELD INADEQUATE
Company Unable to Get Fair
! Return on Investment
7 Ham Tells Stockholders.


at their annual meeting today.
- Although the president did not refer
directly to the question of whether
higher rates would be asked in the
near future for both companies, he
told the owners that earnings are
below what constitutes reasonable
return upon the investment. or upon
itself" He added that the financial
standing of the companies improved
somewhat during 1920 over the preVl-
Gus year.
President Hams Report.
Mr.. Hams report shows that large
sums will have to be spent for several
wears to come for maintenance OF the
street railway property ana ehiarSe-
ment of the power company's plant
According to the report. the railway
company spent S1.136,2It.lS Tor the
upkeep of way and structures during
the calendar year. This amount Mt,
Ham stated. is the least that VIII
have to be spent annually for several
years IL the railway properties are 10
be kept in proper condition.
The report shows that the w. ~
and f. carried S7.7s2.7S4 pay passen .
gers during the year. a decrease Ok
AS per cent from 1919.
The Rate OF Fare.
Discussing the rate of fare. Mr.. Ham
said:
There is now. it is believed. gem
eral understanding of the fact that
this company. with it's large SUBURBAN
mileage, operated at a loss to itself.
but with great benefit to the commu-
nifty, and. deprived of any special bene.
fits accruing to it from ownership OF
the stock of the Potomac Electric
Power Company, cannot. under EXIST
ing conditions. properly function at as
low rate of fare as might be consid-
cred reasonable in the case OF the
Capital Traction Company, centrally
located, with dense traffic and small
suburban mileage. The two compa-
pieS are so located that it lS lmpera-
tive that a uniform fare he maintain
cd on the two systems. making mani
fest the need of the relief of this com
pany from certain of its burdens In
the form of taxes. wages of crossing
policemen and track-paving charges
Extended hearings were had on these
matters during the year before the
House committee on the District of
Columbia. and while a number OF ollls
have been presented tending to re-
lEeve the situation. no action has so
far been taken"
Buninesa of Power Company.
While the street railway company
lest passengers during the year. the
power company enjoyed an increase
OF 6563 new customers. bringing the
tStal number of electric light con-
SINNERS up to iS,122.
S~The output of the Benning plant
vas 225,S7S.260 kilowatt hours. 1O.9
per cent greater than the preceding
year. Due to the large number of
new customers and increased con-
sumption on the part of old custo-
uers, d.. unprecedented amount of
expansion work has been necessary,
as disclosed by the following figures:
New meters installed. 1871; feet of
cable installed. 534,539; feet Of wire
installed. I.2o2.S5s: conduit construct
ed tduct feet). 222.11o. and house
services installed, 2.213.
'-The sales of electric current
amounted to s4.l2S.76S-o3, or an increase
of 21.25 per cent over the previous
year.
Even such a statement as above
.does not adequately picture the
growth of thspower company. 1t is
ifecessary to 4dke a more extended
view to get a proper conception of its
Business and future requirements.
Comparing the ratio of meters in
stalled to population served. We find
that in 1901 there was one meter in
stalled for every 100 of population in
Territory served: in 1905. Is: in 1910,
4; in 1915. 74Sand in 1920. 1o.5.
has called for the expenditure of
large sums of money for additional
plants and extensions. During the
gAst three years alone it has been
necessary to spend $4.S12.351.29 for
such purposes. and there will neces-
earily be equally large expenditures
Ia the immediate and more distant
future.
: The Potomac Electric Power Com
pany. enjoying such a large and ex-
Banding business. located in the ma
tion's capital, with we'll designed
plant. efficiently and economically
liberated, should enjoy as high credit
ps any public utility in the country.
The only thing needed is such reason
able rates as will permit net earn
3ngs comparable to those earned by
prosperous utilities located else
where"
Unable to Float Bonds.
To emphasize that the two COM
panies are not in the financial condi-
tion he believes they should be. Mr..
Ham told the stockholders it was i'm
possible to market two bond issues
that were authorized by the utilities
commission during the year.
The commission directed the power
Company to issue 31.40o.000 general
mortgage per cent gold bonds to
1over capital expenditures. but the
bonds could not be sold and it was
A1cessary to obtain loans from banks,
living the bonds as collateral at 10 per
ffnt of their par value.
The railway company was permitted
TO sell S3i1 900 worth of general mort
gage per cent bonds to cover capi-
tai expenditures. but these bonds also
were unmarketable and had not been
disposed Of
The report shows that on August 20
a dividend of 22 per cent was paid
on preferred stock of the company
and on December l further dividend
OF 2le per cent was disbursed. No
dividends were paid during the year
on common stock.
that the total surplus income of the
two companies after deducting oper-
ating expenses. depreciation, taxes
and miscellaneous items was $780,
552.32. The disposition of this sur
plus is shown as follows:
Surplus income for the year. $780,
zs232; add miscellaneous profit and
loss adjustments. $2s.1ss.77. Total.
3s2S,911.O9. Less sinking fund re-
4uirements P. e. p. Coz. 100000;
payment of per cent dividend on
preferred stock. s425.0Oo-s531. 900
profit and loss. $297,9l1.09.
Direction. Elected.
: Directors for the year were elected
rs follows: Milton +. Allies. Charles
J. Bell. Woodbury. Blair. Edwin G..
93randenburY. Daniel J.. Callahan.
33mory L. Coblentz, William II. CALI
her, julius Gartinkle. William F. Ham.
Robert n. Harper. Lennard H. Mitch :
ell, Clarence r. Norment Harold b.
Thorne, Bates Warren and George w.
White
: The following officers were elected
BY the board: William F.. Ham, presi