Evening star., 1921-02-26
W.R. &E. PETITIONS
FOR CONTINUANCE
Of PRESENT FARE
Potomac Power and Wash
ington and Georgetown Gas
Companies File Plea. /,
EIGHT MONTHS TRACTION
RETURN is 4.98 PER CENT
Mortgages nd Prospective Outlay
of SIC, 900, 900 Cited in Applica-
tion of Power Company.

tion of Power Company.
Continuation of existing rates after
April ! is asked by the Washington
Railway and Electrical Company and
the Potomac Electric Power Company
IN petitions filed with the Public
Ctilities Commission today. The
Washington and Georgetown Gas Light
companies also filed a petition with
the commission asking that the pres
ent gas rates. which are scheduled
TO expire March Is, be extended to
September 15.
The present street car rate of 8
cents straight or four tokens for
thirty cents will return automatically
TO cents with a two-cent charge for
transfers on April 1. unless new
order is issued by the commission
The present electric light rate or
81: cents per kilowatt hour for cur
rent used in private homes will go
back to cents unless the commission
orders otherwise. 1t is to prevent
both these reductions that the COM
panies have filed petitions at this
time.
ADS Per Cent Returned Earned.
The petition of the railway COM
pany states that under the present
months the revenue collected has
been equivalent to a return of 4.9S
per cent upon the value of the rail-
way properties. This value is given
in the petition as S16.S73,3S0.S9.
The Washington Railway and Elec-
trio petition again asserts that the
company believes itself entitled to a
rate of fare that would yield per
cent on the value of the property
but adds that in view of legislation
vnxa RI limo in, tn 1ta "a
method of taxing this company re-
quest is made at this time merely
for a continuation of the present
fare.
In making an earnest plea for con-
tinuation of the present charges for
electricity. the Potomac Electric
Power Company tells the commission
that within the next three years the
company must make an outlay of
$40, 100000.
Half Represents Mortgage.
Half of this sum, the petition
states. represents general mortgage
per cent bonds which mature in 1923.
The balance of $5.O00.000 must be
spent in enlai ging the plant to keep
pace with the growth of the city and
the demapd for electric service. The
company ss making plans now for
new Igenefating station to supplement
the BenninE station.
The Benning plant. according to an
official of the company, il ample for
the present needs of the company.
but could not carry the business
which will come to the company as
the city develops.
Figures presented by the power
company show that if the present
schedule of rates for current had
been in effect throughout the year
1920 the company would have earned
a return of 1853 per cent on the value
of its property. which value is s16.646.-
S9444.
1920 Return 6.65 Per Cent.
Another table of figures shows that
the return actually earned during
1920 was 6.65 per cent on the value
of the property.
The power company's revenue from
the sale of current during 1920
amounted to s4,12S.7S6.03: revenue
from the sale of steam. sl66.755.os:
$10.34S.69. This made total reve-
nue. of $4.311,242.S3.
Operating expenses, including gen.
esal amortization. or .s9n am9unted to
paid customers bills. s21.651.07:
amortization of debt. discount and
expense. SS1.54713; depreciation,
s463.46152. This made total out
lay of s3.203.6271S. leaving available
1or return upon investment, S1,lVf.-
61545.
The petition of the Washington
Railway and Electric Company gives
the total revenue of the street car
company the last months of 1920 as
s4.176.9sz 40. Expenses. including
617.58O.96. The balance was $3.50
40153, or a return of $50 per cent on
the value of the property.
The Washington Railway and Elec-
trio Company asks the commission to
reconsider its decision of last Decem-
charge income tax to operating ex-
penses, but meet that tax out of net
earnings
Asks for Like Rates."
In addition to asking that the pres
ent rate of fare be continued on it's
own lines, the Washington Railway and
Electric petition requests that the
continue like rates on
other street railways as at present.
George E Hamilton, president of the
Capital Traction Company. stated today
in answer to a question that his COM
pany has not decided what stand it will
take on the fare question. but will reach
a decision soon.
1t is known that the Capital Traction
Company could earn a fair return on the
value of its property on a lower fare
than the present one. Officials of that
ROAD nave sldtCus ho"SFCis taiae eAAcy
could not so back to 5 cents as con-
.emplated by the commission, when IL
limited the present fare to March 81
sums Up Situation.
The Potomac Electric Power Company
sums up its financial situation as fol-
ows: ~
THE bonds of this company now out
standing are as follows:
10 1st mtg. 81, 7O0. 900; ann. int. $50, 900
,es con, mtg $500. 600: ann. int. 265 600
;so gen. debs " $50. 900; ann. int. 5000
10 gen. mtg 80. 3 coo. 900; ann. int. 216.0O0
sll35OOOO $6li OO0
..In addition to the above, $1.091, 900
f general mortgage 6s are now pledg-
I'd as collateral on short-term notes.
eaving but s309,00 of the general IS
AVAILABLE for sale or pledge. This
caves the company in a most serious
condition for financing extensions.
rhe only possible source through
yhich these needed extensions can be
made is by the company being per-
nitted to earn a return that would
lttract investors.
"further. the applicant has still
arge capital expenditures to make
,ecause the demands upon its Benning
liant have reached the point where
additional units will have to be pro-
,ided so as to meet the continuing
Ind growing demands upon the com
,any, and to adequately serve the
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