The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1921-07-26
.PEPC0 PLAN ARREST Of
Is ANALYZED G0V. SMALL
BY NEWMAN IS ORDERED
Declares It Legally and Eco
nomicalIy unsound and Pre-
diets Its Rejection.
Bs Major OLIVER r. NEWMAN.
Formerly President beard Of Commits,
sioners, ristvict Of Columbia.

Bs Major OLIVER r. NEWMAN.
Formerly President board Of Cemmis-
sioners, ristrict Of Columbia.
Today we take up the so-csllcd
"Oyster plan" for solving the trac-
tion problem.
prefer to call 1t the "Pspco
PLAN" as it involves the request Of
that company for an INCREASE
in electric light rates.
Before considering the Pepco
plan, let's get squarely on the
foundation announced yesterday
for discussion Of the whole street
car question, so that we'll know
in what direction we're travelling.
The Ten Plans Reviewed.
I stated yesterday that there were
ten plans now before Congress, the
Utilities Commission and the public,
each offered as an answer to our
traction difficulties. and that I would
apalyxe and discuss one each day.
Yesterday dealt with Number One,
and today take up Number Two.
In order that we may consider each
In its relation to the other let's look
at the whole ten again, Here they
are:
/. The existing plan. CThe status
.. The Oyster plan-To increase
electric light rates.
8. The different fare pIan--To fix
lower fares ON the Capital Traction
than ON the Washington Railway
and Electric.
4. The zone fare plan"-To charge
an additional fare after the rider gets
into the suburbs, or vice versa.
the companies OF paying per cent
of their gross receipts to the District
AS taxes.
6. The Composition plan"-To lot
the companies fight IL out between
themselves on a competitive basis.
I. The plan to abolish the Public
Utilities Commission and have fares
fixed by Congress.
8. The separate commissIon plan---
To create . Public Utilities Commits
sion whose members would not be
the District Commissioners, but three
persons having no connection with
the District government.
3. The merger plan---To consolidate
IGO kWO utk eNENSt CaI COHDaUIeS.
10. The public ownership plan, un-
der which Congress would condemn
and take over both street car com.
panies and create an agency to opsr.
ate them as one concern.
To understand the Pepco plan
thoroughly 1t Ia necessary to keep
In mind several high points. One
is that there is a law in existence
passed by Congress many years ago
after a thorough study of the case
which PROHIBITS any street car
company In the District OF Colup,bie
selling electric power or current.
Interest Of Law Lost.
The reason for the existence Of
that law is very simple. Congress-
believed that street car service and
electric light and power service
should be kept SEPARATE. II Vas
feared that, IL street ear rom.
pany was permitted to sell power. the
two businesses would get mixed I'm
and either electricity users or street
car users would be imposed upon,
1t was felt that any company that
produced and sold electricity should
stand on It's own feet, giving the
test possible service at the best nos
sible rrte. With equal conviction
1t was ielt that any company that
sold str ut car rides should stand on
ITS ow. ofeet, giving the best posi-.
BILE service at the best possible
price.
incidentally, I'm laying down that
principle, Congress merely followed
what has been generally found 10 be
the best system, as Q result of years
Of experience and develop,ncnt the
country overg
That intent q Congress has been
that law, the Washington Halfway
and Electric acquted all the stock
Csmounting to 5000, ,0o0) Of the Po-
tomac Electric Rover Company.
and still holds II.
The officers and ,Iirectors OF the
power company are identically the
Continued on Paxdi5. Column ~