The Washington herald., 1921-07-07
Federated Associations
President Tells Why
Plan Is Opposed.
UNFAIR TO RIDERS
AND POWER USERS
Westlake Sure Congress
Won't Saddle Such
Burden on City.

The Federation of Citizens Asso-
Citations is strongly opposed to the
absorptfo nof the Ptomac Electric
Power Company by the Washington
Railway and Electric Company. w.
b. westIake, president of the asso-
cifon. declared yesterday.
NO advantages whatever to the
public could be expected to accrue
from a consolidation of this kind,
Mr.. westlake said Tt has been
admitted by the president OF the
two companies, that a reduction OF
fares would not result from such a
merger and a reduction of fares is
vitality necessary II the people are
to share in the benefits of a merger.
sUnfafr and Pernicious."
TT would not only be unfair to
the car riders but pernicious to al
low two utilities to become so
scrambled that users of electricity
would be compelled to pay more
than a fair rate in order to provide
funds to make up a deficit of the
Washington Railway and lectric
Company" Mr.. westlake insisted
The Federation has always in
sisted on being recorded as advo-
eating a fair rate by this We have
meant a reasonable chrge for serv-
ices rendered by thecompnies II
the lines were conservatively and
efficiently managed as railway
properties they would pay a fair
return on their valuation as set by
the Public Utilities Commission The
federation has never endorsed
rate of return to pay extrayagant
charges and it certainly has never
approved of a plan to tax SO per
cent of the people-patrons of the
Capital Traction Company in or
der to permit the Washington Rail-
way and Electric Company to earn
dividends
while the Federation does not
question the motive of the Public
Utilities Commission in thrusting a
inform fare on the two companies
a fare admitted unjustly high Tor
the Capital Traction Company-We
40. believe that the commission has
erred greatly in considering these
tvvo corporations as a whole. II
would be Just as honest and Jpstl-
liable to appropriate the earnings
Of the gas or telephone companies
in order to apply them to the
dehcit OF the Washington Railway
and Electric Company.
.OnIy n Theory"
No one really knows what would
bannen If a different rate OF rare
was applied to each company MT
westlake argued. Expert theories
have been advanced, but these the
cries oftn fail in an actual test
he said Experience seems to pear
ont the contention that competl-
tion reduces prices. 1t is just as
logical to presume that the busl-
ness Of the Washington Railway and
Electric Company would increase II
operated under a lower fare that
AZ present, even though higher than
the CAPITAL Traction, as 1t would
be to predict it's ruin.
There are thousands of automo-
biles in the city used by govern
ment employees and others that
would never have been purchased II
the fares had remained at cents.
Each of these cars .hauls from one
to five passengers to and from Work
that otherwise would be street car
patrons. Many motorists believe the
street car companies have resorted
20 extortion and make il a point
TO deprive the companies of fare
whenever possible by carrying a
neighbor or two.
The policy of the Capital Trac-
tion Company seems to have been
to make as many friends as pos
sible and there Is no doubt that
Il has succeeded admirably. On the
other hand, the Washington Rail-
way and Electric Company has been
successful only in making enemies
This is probably due to the evils
of past management, and the pres
ent officers may be trying to regain
the lost esteem and confidence of
the public. 1t Is hardly to be ex-
pected. however, that a Congress
composed of members from every
section of the United States. most
of whom are familiar with public
utilities and the ususla procedure
by which a utilities corporation ex-
plates its sins, will allow any legis-
lation to be promulgated that fixes
on the people of the Capital of the
United States a perpetual burden
of debt growing out of the improper
distribution Of dividends of the past.