Evening star., 1921-05-20
HARD TO SOLVE OUR
STREET RAILWAY
PROBLEM JUSTLY
How Shall We Distribute
Equitab|y the Cost of Car
rying Long-HauI Traffic at
a Loss?
THEODORE w. MOVES.
Editorial Correspondence Of The Star

| IN solving equitably our street railway
problem the primary responsibility for
! providing means of carrying long-haui
| passengers at a loss, distinctly IN the
| community interest, falls upon those
who have benefited by this wise policy
! in the past. 1t is just that they should
| first come to the rescue.
The main loss is falling and will in
| evitably fall upon the Washington Rail-
way and Electric Company Stockhold-
ers. The common stockholders. who have
enjoyed increasing dividends and for a
time great increase of stock quotation
values through the contributions of exces-
sive electric light profits. and OF savings
through underpayment OF workmen. and
through stock manipulations. are now
called upon to pay back some of their
past profits and to cease to enjoy pres
ent and, for a time at least. future
profits. Indeed, they have been threat
ened with confiscation Of their principal.
The Washington Railway and Electric
stockholders have suffered for errors of
judgment of their agents in handling a
strike Of their employees and in mis-
judging public sentiment They have
perhaps deserved to pay and have GER
tainly paid heavy penalties; they have
not, they contend, deserved capital pun
ishment. They urge that the company
ought not to be declared bankrupt or
forced into bankruptcy when it's assets,
present and prospective. are recognized
as of such great value. and when the
causes which compel it to do an increas-
ing business at an increasing loss are
obvious, are not attributable primarily
to it. and may be corrected.
Obligation Of Long-haul suburbanite
Another beneficiary of the wise
public policy of carrying long haul
passengers at a loss is the suburban
lite. For many years these long-ha ul
passengers have been transported at
the same fiat rate as the short-haul
passengers. at a loss. the Improbable
suburban lines of the w. r. & T..
| being carried by the urban trunk
lines and by the profits of the Poto-
mac Electric Company and by the
savings from inadequate wages to en-
ployes. Now the wages Of employees
have been enormously increased, the
profits Of the electric company have
been cut down and the fiat rate to be
paid by urban passengers to bear the
whole burden Of carrying the unprof-
table iong-haul traffic has reached. c.
necessity. a figure which drives pas
sengers to the competing line il there
Is a differential in fare. and which
imposes an undue burden upon the
passengers Of the other line (laHgely
short-haul passengers) II the fat
>
long g-haul suburban passengers have
reasonably resisted a zone system.
which multiplies the fare unduly
without meeting the dehcit in full
(the company claims) and without as
suring the. better service which
But since the task of carrying them
at less than cost and in increasing
numbers during war time is largely
responsible for the breaking down OF
the road. should they no. reasonably
respond to the demand Of the sit
charge a slight temporary increase
over the urban fat rate for their
transportation? And should not the
long haul suburbanites. recognizing
that they are being carried at a loss
on broad grounds of public policy in
ington. cheerfuily contribute. as tax
payers. to help meet this loss and
become the earnest advocates OF some
system of tax readjustment to this
end. like that proposed in the past by
the District Commissioners?
Obligation Of Tnxpayink Community.
What is the obligation of the tax
payer-the general public-the mu-
nicipality? The Washington Railway
and Electric Company by cheap fiat
rate suburban fares has been an i'm
portant factor in city development,
ing slum development. this cheap
rapid transit enabling thousands to
own homes and raise families in
wholesome. healthful surroundings.
This development has also added mil
lions to the city's taxable property
and has thus increased largely the
city's tax revenues.
The national 1overnment wbtch Il
also the local government. and the
capital community having thus bene-
fitted by the suburban upbuilding and
tax revenue increasing services of the
company. rendered at loss so far as
suburban service is concerned, and
having. by indirectly Increasing
wage scales and by cutting down
electric light profits. rendered the
company unable to bear the whole
burden Of this Improbable transpor-
tation. and having by the importation
Of more than hundred thousand war
workers vastly increased during war
time the number Of these long haul, un-
profitable passengers-are under an
equitable obligation to note these sery-
ices Of the company in the community
interest in the past. and. so far as It
can be done without injury to others,
to correct the obvious injustices of
the situation.
The community. the local-national
government. can recognize and meet II.
equitable obligation by wise and consid-
crate action in the Public Utilities Com
mission and in Congress. Since 1t has
brought the company into financial
straits by cutting down its electric light
profits. by increasing its labor wage ex-
| pcnses and by swelling enormously the
number. Of long-haul passengers. which
it carries at a loss. the government
has already recognized that 1t should
adjust railroad rates In such manner as.
: without injury to the public to offset
effectively the losses which it has i'm :
posed. and it should also so readius
the taxation OF the COMPANY as to
accomplish the same purpose. II Is
| unWise to refuse to recognize that
the Capital Traction Company. with
it's maximum profitable short haui
! traffic and its minimum lonr-haui
Improbable traffic, and the Wash
ington Railway and Electric COMPANY.
with it's maximum Improbable long
haul and its minimum profitable short
| haul traffic. are in different classes. and
cannot be handled on the basis Of mi
| form nat rate with uniform taxation Of
! gross earnings.
A change in tax system from a tax
| on gross earnings to one on net earn
! ings would substitute more scienfiGc
! and equitable scheme Of taxation and
! would tend to expedite just merger.
, Obviously there In sOmethinr wrong
| with n tax measured solely BY Ero.s
| income which ignores the outlay fhat
! in come. Such a tax may, ms in III.
present instance. work ont the nr.-
| po.terous result of imposing n he.r
! - k,u en mnOu n hnsln>~. :,