The Washington herald., 1921-07-15
Admits 10.699o Profit on
Rate Charged Last
Year. g.
OFFICIALS MAKE
DIFFERENT CLAIMS
w. r. & E. Co. Says Cut
Would Be Ruinous :
To Property.

A straight 7-cent fare with 1-cent
transfers would net the Capital
Traction Company a fair return ON
its valuation. as determined by the
Public Utilities Commission. J. II.
Hanna. vice president of the Capi-
tai Traction Company. told the
Commissioners at the afternoon ses-
sion Of the public utilities bearings
in the District Building yesterday
William r. Ham. president Of the
washington Railway and Electric
Company. on the other hand. in
sisted that a reduction to less than
8 cents cash with seven tickets for
so cents would be ruinous TO the
Washington Railway and Electric
Company.
! Al the request Of Chairman Kutz.
Mr.. Hanna produced figures show
ing the possible net return on fares
ranging from TO cents.
Al cent. straight. % was
shown, the net earning. for the
past year would have been st
the rate OF s-7z per cent. AT
cents cash with four tickets for
Is eents. S-3s per cent? st
cents. per cent or enc hRlf
the necessary amount 20 pay the
interest On the conpsaies'
bonss- The earnings Of The
company fer the year endinE
April 20. Vice President Hanna
stated. were st the rate Of 1o.es
per cent.
Charges Rig Stick Rule.
President Ham introduced his tes-
timony by stating that the Fedora
ton of Citizens Associations would
have the commissioners use .sbig
stick" methods to drive the railway
companies into a merger that was
Illegal and by requesting the in
stitution Of a separate fare for the
Capital Traction Company CONTRA
dicted their statement that they did
not wish to injure the Washington
Railway and Electric Company. He
pictured the Washington Railway
and Electric Company as a public
benefactor that without justihsble
remuneration had extended and
msintained lines reaching into a
Comparable wilderness in order %
render a service 20 the people and
facilitate the growth OF the city.
He Acknowledged that perhaps
the Washington Railway and Elec-
trio Company had done more to in
crease the value OF property in the
District Of Columbia than any other
institution in Washington. submit
ting figures showing the growth OF
the city from the civil war period
to the present day to substsntiste
his statement.
Says Reduction Unfair.
A statement was produced by Mr..
Ham for the purpose of showing
that a reduction at this time was
not justified inasmuch as the earn
lngs on the commissions valuation
was but 7.S7 per cent. other states.
MI. Ham claimed. had been more
liberal to their utilities corporations
and to press his point quoted the
rate Of return allowed by the pub
lie utilities commissions and courts
of other cities.
william Nick. CLAYTON took ex-
ception to this statement. claiming
that an average OF the ra.es cited
oy Mr.. Ham would not prove that
the rate allowed the Washington
railway and Electric Company wa
proportionately low. The reduction
OF II cent in the rate was then
claimed to be unjust by the preSi-
oent OF. the Washington Railway
ano Electric, as IL would net the
company but 5.SI per cent on their
fair valuation.
Repairs Are Needed.
1t vas then shown in a statement
prepared by the Washington Rail-
way and Electric Company that the
earnings Of the City and Suburban
Railway Company were one-half OF
per cent during the past yea.
IL will soon be necessary TO make
repairs on this line that the CITY
and Suburban Company cannot a.
ford 10 make, IL was explained.
and unless the Washington Railway
and Electric Company can be as
sured Of a fare that will permit
them to advance the necessary
funds to make these repairs. the
City and Suburban will be left to
its own devices The same case ap-
plies to the other suburban lines
Mr.. Ham said, although he made
this statement, he explained. with
out the authority OF the board OF
directors.
Mr.. Ham grew indignant over
criticisms appearing in the press.
charging the Washington Railway
and Electric Railway Company with
mismanagement. He emphaticslly
denied that there had been any mis-
management of the Washington
Railway and Electric Company.
win Abs.den Lines
There are some utility experts