Evening star., 1921-07-15

The Washington Railway and Elec-
trio Company may have to consider a
reduction in the pay of its motor
men and conductors IL the Pub
lie Utilities Commission reduces the
rate of fare at this time. William F.
Ham, president. intimated at the hear
ing yesterday afternoon.
After telling the commission that
track laborers are the only employees
whose wages have been reduced, Mr..
Ham added:
ut would be an unfortunate thing
If we were forced to consider cutting
when the Capital Traction wage
agreement is subject to revision"
Asked today il the company would
have to cut wages in the event of a rate
say at this time. He added that ques
tion would depend on conditions if the
fare Is cut.
Mr.. Ham Presents Evidence.
Mr. Ham submitted a volume of testi-
mony to show that while prices in
many commodities have been on the
decline in recent months, practically
all of the materials entering into
street car operation are either the
same or higher than they were a year
ago. He cited wheel rail. conductor
bar. cement. paving blocks and coal
In cost to his company.
In summing up the condition of his
company and the street car situation
as a whole, Mr.. Ham launched an at
tack upon certain newspaper writer's.
who, he said. are advocating the bank
ruptcy of the w. r. & z. as the cure
for the street railway problem.
Il want to say now that the Wash
1ngton Railway and Electric Com
pany will not be the first to go into
ha II TOW hut do Of hal hn
situation will come to any such pass"
asserted the president. Discussing his
testimony after the hearing. Mr. Ham
explained that he meant the company
would give up its improbable sub
sidiary lines if conditions made that
necessary. rather than lose the entire
w. r. & E. system.
Present Return S.53 Per Cent.
Mr.. Ham told the commission the
present rate of fare yielded his COM
pany only $50 per cent on it's valua-
tion during the past twelve months,
which is less than the per cent re-
turn regarded as reasonable by the
commission.
He insisted that the W. r. & E. must
have the same rate of fare as the Capt.
tai Traction Company in the same terri
tory. and il the commission decides to
reduce the fare on the Capital Traction
1t should establish a zone system of
fares.
John H. Hanna vice president of the
Capital Traction Company, testified that
during the year ended April 80 the pres
ent rate of fare yielded his company an
operating income of $1.66S, ,271.56, equal
to return of TO- So per cent on the value
OF the property as fixed by the commits
sion.
Operations for the first four months
OF this year. he testified, netted the
company S5S0.674, or a return Of ILL
per cent on the valuation. He added
however. that the first four months of
the calendar year do not fairly represent
third of the year.
Gives Revenue Estimates.
He then told the commission that il
II reduces the fare on his lines to cents
cash. with l cent for intercompany
transfers. operating income would be
81 1850. 1922. or S.72 per cent on the
valuation.
With a rate of cents cash or four
tokens for % cents, as asked by the Fed
Grafton of Citizens Associations. Mr.
Hanna estimated his operating income
at $9S6.62S.S4. or a return of 632 per
cent on the valuation.
A return to the f1ve-cent fare with
one cent for intercompany transfers
would give the Capital Traction Com
pany $145,053 operating income, or a
return OF less than 1 per cent on the
valuation. he testified: In connection
planned that when the five-cent fare
was in effect motormen and conduc-
tors were being paid 25 cents an hour,
whereas they now receive more than
twice that amount.
Mr.. Hanna surprised many Of the
citizens present when he testified that
40 per cent of the operating expense
of the Capital Traction Company rep
resents the wages of platform en-
ployeS.
Fare Company Desires.
"A seven-cent fare with one cent
FOR intercompany transfers would give
us a reasonable return" Mr.. Hanna
told the commission. "A seyen-cent
fare with four tokens for % cents
would not give us fair return. in
our opinion"
Mr.. Hanna told the commission he
Still is of the opinion that different
rates of fare for the two companies
would result in more inconvenience
to the public than the slight benefit
they would derive from it. He esti-
mated that if the Capital Traction
had a straight seven-cent fare and the
w P & F. continued with the pres