Evening star., 1921-06-18
Congress and the Rates.

Congress and the Rates.
It is proposed by members Of the
subcommittee Of the House District
committee recently engaged in consid-
, ering the street railway question to
repeal the public utilities act and re-
enact the laws in effect at the time OF
its passage, which would restore a
fve-cent fare. 1t is also the purpose
to follow the bill already introduced
to that effect with another bill estab-
fishing a separate public utilities COM
mission.
II Congress wishes to take over. as
the Districts legislature. the xesponsi-
bility Of fixing street car fares and
other public utility rates it has but to
pass the bill which has just been in
troduced by Representative Hammer
and abolish the utilities commission.
But if it wishes to relegate the power
Of rate-fixing and regulation-making
to a separate commission, distinct
from the board of District Commis-
sioners, it should pass bill not in the
form merely of a repeal. but as an
amendment to the public utilities act
There is danger that a repeal might
be voted without the affirmative crea-
tive legislation required to establish
q separate utilities commission. So
the question should be very carefully
considered now whether Congress
wishes to continue the practice Of utili-
ties regulation and rate-fixing through
a commission or prefers to take over
this detail OF District legislation and
government Itself.
If a utilities commission is to be
created separate from the board Of
District Commissioners and is to have
the power of rate-fixing there is no
occasion whatever to begin by arbi-
tarily establishing a five-cent fare by
act of Congress. If Congress is to
retain the power Of rate-fixing there is
but little need Of a utilities commits
sion, the chief function of which lies
in the field of rate regulation.
The utilities commission has con-
scientiously and thoroughly considered
the street railway problem and has
found that rejection by the public of
the zone system Of fares and the taxa
ton inequitably Of the gross instead
Of the net earnings of the companies
left no alternative but an increase Of
fares. It has decided that the fares
should be uniform on the two systems,
for the establishment Of a lower fare
on one would lead to congested and
poor service on that line and to a great
loss of business on the other on COM
petitive urban routes with no proper
ttonate reduction of cost and a conse-
quent aggravation of the evil to be
remedied.
AS soon as one analyzes the PROPOSE
ton Of differentiating the fares to be
charged by the two companies one dis
covers that the equitable differentia-
ton is not between the two systems as
separate units but between the fares
to be charged for the long haul and
the short haul on both roads. The two
companies have sections Of parallel
city track that are intensely competi-
tive. The fare should obviously be
the same on these urban lines Of both
roads. The Capital Traction has one
practically non-competitive suburban
line. The Washington Railway and
Electric has many such suburban nom
competitive now-unprofitable lines. The
utilities commission might without in
Justice fix different rate Of fare for
the suburban long-haul and the urban
short haul. applying this differential
to both railway companies; and since
these suburban lines are not competi-
tive. they might without injustice or
public injury differ in rates Of fare
among themselves.
But these differentials will be jusu-
ned only by the equities which underlie
the zone system and will suggest that
system, which the community on
grounds Of public policy has rejected
The utilities commission, accepting
the rejection Of the zone system as
final, has urged readjustments Of taxa
ton equitable in themselves, which
will tend to correct the inequities that
result from applying a fiat-rate sys-
tenn to every railway line in the Dis
trict, trunk line or subsidiary, urban
or suburban, carrying long haul or
short haul passengers, profitable or m-
profitable when considered az a sep
arate unit.
The District needs better street
railway service. 1t wants a lower rate
Of fare than is now charged. It hopes
for a solution Of the problem speedily.
But 1t asks wisely constructive, not
destructive legislation. 1t does not
want the Public Utilities Commission,
which Congress wisely created as its
agent, and which has labored conscien-
tiously In the public interest. to be
disredited and destroyed. 1t does not
want the Washingtonians who con-
stitute any local corporation to be
forced into bankruptcy, without really
being bankrupt, by any Of the recog-
nized modern railroadwrecking de.
vices.
A Areconstruction-td time administration