The Washington herald., 1921-05-02

THE Washington Railway and Electric Com
pany like the Capital Traction, is practically
holding company. 1t has ten lines extend
ing to, or beyond the District boundaries 1t is
very complicated aggregate. 1t owns and controls
the Columbia Railway Company, the Anacostia and
Potomac, the Georgetown and Tennallytown. the
Brightwood, the Washington, Woodside and Forest
Clsn,-the Washington and Rockville, the Washing
ton and Glen Echo, the City and Suburban. the
Washington and Great Falls, the Metropolitan, the
Union and the Boundary and Silver Spring. 1t
also owns all the stock of the Potomac Electric
Power Company and the United States Electric
Lighting Company.
Some OF these railway companies were them
selves consultations or had been merged, before
they came into the nest of the w. R. & E. 1t also
owns two-thirds of the stock of the Great Falls
Power Company supposed to hold the key to the
Great Falls undeveloped water power Many of
the street railway properties acquired by an
exchange of stock such exchange as part value
IN the purchase 1t forms sort of maze of hold
ings, that is not peculiar to the w. r. & E.-there
others-but it sort of battles the average man.
While the fair value of all this street railway
aggregation within the Distrct--I3o miles of track
age-is $I6,25oooo, the outstanding bonds amount
to SI75oo,ooo, the bulk of them however are long
term at the very low rate of per cent. On top of
these bonds are $S,5oo,ooo of per cent preferred
stock, cumulative, but not guaranteed, and on top
OF that So,5oo,ooo OF common stock total of S33-
10000 Of obligations double this fair value
The company has nearly twice many en-
ployes does the Capital Traction. 1t has over
twice the trackage in the District but operates or
has total OF, o57 of all kinds, GA being pas
scnger cars, compared to the Capital fractions
total Of 7Io. OF which 663 passenger. by the
port OF 1919, the latest which is available
The w. R. & E. gives its investment at Ss343o-
Ooo Rut he hrk of is ohabI tba
chase price, largely stock swapping DEAL of the in
Cluded companies, it does not form a guide for
the actual cost or actual cash outlay In fact the
report says: at is not possible to state the of
road and equipment separately from the cost of
stocks, funded debt, and promissory notes owned"
1t made excellent showing of current or liquid
assets OF just under 81 100000 Of which $s48ooo was
passed to the profit and loss accounts as credit
balance
s.,, The passenger revenues for the year were $3-
7443s4, which $77I.ooo less than that Of the
Capital Traction for under half the trackage Its
total revenues S4,3S733I. Its total operating
expenses were $3478,6Io leaving a net operating
income Soo8,7eo as compared to SB3oI,I67 for the
Capital Traction which has less than half the miles
of line and but over half the financial liability.
But to this operating income was added $4,000
as dividends from the Potomac Electric Power
Company with $4,000 from other in
vestments, that after paying taxes bond interest
etc. there a balance Of S46S472 to apply on
dividends. The interesting feature here is that this
amount is more than 100000 less than the income
from nonstreet railway operations and investments.
As street rail, ay enterprise it could not have
paid its bonded interest, without using other than
operating current revenues.
Like the Capital Traction, it had very large
increase in salary charges over 1918 This amounted
to close to 100000 1t also carried forward as
credit balance in profit and loss account $4,000
AS whole the w. R & E. is combination of very
profitable and very improbable mileage, which in
ITSELF has only future earning value on its total
capitalization. Outside this it owns the Potomac
Electric Power Company whose profits now keep
its head above the financial waters
The Herald will continue this discussion to-
morrow.