The Washington herald., 1921-05-07
Death is not the worst evil, but rather
when we wish to die and cannot.-Sophocles.
Washington Street Railways.
XII. ONE POINT OF AGREEMENT

THE reports OF the various hearings held .bv
Congressional committees on street railway
matters are as interesting as ten-best-seller
to one who appreciates human nature In the testi-
mony OF the managers of the two companies there
IS distinct strain Of corporation ethics fellow
feeling, kindly courtesy and praise from each for
the excellence of the others service and
This is all seemingly sincere and we believe it is
sincere.
1t is found that both favor merger. Both IA
vor a special act permitting this. There is quite
natural agreement, too, that any merger should
be preceded by the absorption by the W. R. & E
Co, OF the Potomac Electric Power Company
Both give the same reason-that this would or
should, enable the w. R & E. to increase the price
for electric light and power and in this way provide
an added revenue for the railway company at the
expense Of the users of light and power
Th reason for this agreement is not far to see
If the Capital Traction Company should take over
the w. R. & E., it would prefer to have it a fairly
profitable concern the basis of its established
fair value if not exactly its capitalization If the
w. R. & E is to be absorbed it naturally would
prefer to have this done at the higher value made
possible by this extra The representatives
OF both are business mutually concerned over
business proposition Their first concern is of
course for themselves.
If those who pay the bills to fatten the rev.
hardly expect either corporation to do this for
them. So far, the utilities commission has opposed
this plan which to the average seems so un-
moral, unfair and unjust as to need argument.
If the Potomac Electric Power Company was sep
-arateIy owned-the w. R & E. now owns it-no
such proposition would be considered for moment.
Then the w. R & E. would pay for its power on a
quantity basis and the other consumers certainly
could not be charged extra price in order that
a.. +
ing.
But its ownership by the W. r. & E, does not
change the morals justice of the situation. 1t
gets all of its net earnings, amounting in 1919
to $4,000 If the rate increased as it de-
mands the result would practically be that it would
get enough more to about balance what it charges
itself for power 1t would be taking money from
1900 patrons representing probably 100000 people,
to enable the w. r. & E. to pay its stock
holders larger dividend equallng about its power
charge. 1t would not lower rates; it would not
return anything to the people of the District No
part of it would go back to them 1t would all go
into the treasury OF the owning company for divi-
dend uses. 1t would also make the w. R. & E.
for this reaSon-a more valuable property on the
market
1t is in testimony also that the Potomac Electric
in the sixteen years. including 1910, did not pay less
than 68 per cent its capital stock OF $1,000 900
increased in 1912 to 100000. For two years it
paid 10 per cent, for FIVE years per cent on the
S6oooooo, and in addition interest on a bonded debt
increased steadily from Sal $4,000 in 1904 to $II35
in 1919. In the language of the Hebrew friend:
~What do You expect? Hummingbrds?"
Another feature developed in these hearings
is the attitude shown by part, the smaller in
Der, of the committee supposed to have the judi
eial function of hearing and determining and not
have performed opinions 1t is a ray of light to
find member not examining, but cross-examining
witnesses quite if attorney for both of
the companies. At the time, throughout an
entire hearing such that of a year ago rates,
no one of the committee seemed to have any
especial interest in the people who have to pay the
street car fares.
Only the utilities commission, with an excep-
ton even there, and few voluntary witnesses,
heard apparently as favor, concerned for
the folks. Is not this the peoples own fault? Is
it not rather apparent that the people of Washing
ton do not make themselves felt in their own pro-
lection? What is eyerybodys business is nobody's
business yet where it is everybodys business there
should be concentrated organized effort to look
after it.