The Washington herald., 1921-06-21

bank concern like the
Washington Railway and Electric
Company" declared Mr.. Russell. II
is just like selecting a poor, blind
cripple as the standard for the as
certainment of reasonable days
work by an average ablebodiei
man. The reasonable rate is the
rate made by and for the Capital
Traction Company, he continued.
Let the other competing company
meet this rate or go out of busi-
ness. The public interest demands
nothing less than this.
Franchises Set Fares.
Congress has granted charters
to some thirty-two street car COM
panies with franchises to use the
streets within the District of Co
lumbia. In every one of these fran
chises 1t has been provided that the
company should carry passengers
for the fare of cents with six
tickets or fares for 25 cents. There
is no provision in any of these fran
chises, and there has been no stipu-
lation expressed or implied. that the
company shall make or earn 5 per
cent or 6 per cent or Z per cent or
any other per cent on the fair value
the capital value, the replacement
value, the inventory value, the in
vestment value, the book value. the
par value, the appraised value, the
estimated value. the actual value,
the market value, the real value or
the cash value, past, present or
prospective of its stocks, bonds, Sc
curitiaS or nrOnertV
Get Use of Streets Free.
There is just a plain contract"
between the companies and the gov
ernment, that the companies will
carry passengers at a stipulated
fare. with the implication that they
will be satisfied to make what they
can earn at this fare. The COM
panies paid nothing for the fran
Chises to use the public streets and
although nothing was paid for the
franchise, the Washington Railway
and Electric Company has been so
anxious to acquire and control
them. that 1t bought practically all
of them up and now wants the pub
lie to pay interest and dividends on
its outlay of fictitious securities for
these franchlrcs, although nothing
was paid the government for them.
ara they were tree grants for the
public benefit and not speculative
rights to be bought and sold on the
market.
Profits Not In Obligation.
4 1T Is claimed that costs of op-
seration have risen snce the fran
chises were granted" added Rus
sell, but this of itself does not
give the companies q right to a
fare in excess of that stipulated in
the franchises. OF course, if a COM
pany were operating at a loss and
| threatened to abandon its service
and forfeit its franchises. 1t might
be well for Congress to consider
making a temperatei Increase in
fare, not to pay the company profits
but to cover the costs of operation
and depreciation. There is no OBJ
legation to pay profits on the capi-
tai stock. Fronts must be earned
in the open field of business COM
petition.
There might be some moral claim
to have the fare raised to meet the
increased cost of operation per pas
senger which prevailed at the time
the franchises were granted, or pre-
vailed before the increase due TO
war conditions. This would only
mean however. that to the fare OF
41-6 cents might be added the diff
ference in the cost of operation per
passenger in 1920 over and above
the cost Of operation per passenger
before the war increase" Russell
said.
Cannot Ask for More.
The companies have no right to
ask for more. 1t does not appear
that the Public Utilities Commits
sion has at any time had the knowl-
edge, foresight or the prudence to
take this sensible and legal view
of the matter.
The Capital Traction Company
carries more passengers than does
the other road. The Capital Trac-
tion patrons, who are the majority
of the people of Washington, are
entitled to get to and from the
great government buildings and in
stitutions where many of them are
employed. The franchises granted
by Congress have frequently provid-
ed for the joint use of street rail-
way tracks in the District of CO.
lumbia. 1t is an ordinary condition
fd< both companies to use the same
tracks in many localities.
sh ouId Use wa R. RE. Tracks.
1T is the plain duty of Congress"
Russell insisted, ito require the
Capital Traction Company, on the
precedent of the provisions which
occur over and over in the char
ters of companies in the District.
to extend its service over such of
the tracks of the w. r. & E. as
will promote the public convenience
and afford better public service.
THE patrons of the Capital Trac-
tion system as a matter of primary
convenience are entitled to have
direct access to the business sec
tion of Washington. This can be
accommodated only by the opera
tion of the Capital Traction cars
from the Union Station to the
Treasury through G street. 1t is
positively stupid" Russell asserted,
that this street, the most impor-
tant traffic route, in many respects,
in the city OF Washington. has no
through street car service.
Would Restrict w. r. 4 T..
The tracks in this street are of
little or no use the w. r. & E.
Company with its parallel lines in
d, E, F and H streets and New
York avenue" he continued. This
is demonstrated by the fact that
the w. R. & E. uses G street merely
as a route and terminal for sup
urban service. The first move to
improve the street car service. in
Washington is peremptorily to ex-
tend the Capital Traction service