Evening star., 1921-05-27

and I have the assurance of a better
rate in the near future
The financial details Of Capt. Oysters
plan were drafted by Eugene Thomp-
son. the investment banker, at the re-
quest of the Commissioner.
Representative Sproul asked Com
missioner kutz. when the latter was
teStifying, if one of the companies,
meaning the Capital Traction. had not
offered to carry passengers for o
cents. Representatives Sproul and
kunz both insisted that they un-
derstood the Capital Traction Company
was ready 10 carry passengers for 5
cents. Representative SprouI argued
that corporation should fulfill it's
contract. and that in approximately
thirty franchises granted in Washing
street railway corporations, it has been
written into practically all of them
that the car fare should be cents.
In reply Col. kutz said that the Pub
lie Utilities Commission feels that
these basic franchises were modified
Utilities Commission with authority to
regulate rates granting the corpora
tions a fair return on a fair valuation.
Col kutz said that he and Commis-
sioner Rudolph believed that the rem
edy is imposition of an excess profits
tax rather than an increase of the elec
trio rate. Representatives Keller and
kunZ argued that either: way the pub
lie would have to pay. and representa-
tive Hammer emphasized the conten-
ton that by either process it would be
confiscation practiced upon the public.
Excess ProRits Tax Urged.
Commissioner Kutz said that with
the imposition of the proposed excess
profits tax the earnings Of each com
pany would be brought within N
per cent of each other and so the
Pubilc Utilities Commission could fix
the same rate as though the compa-
MES had merged. In this way. he said.
the public would get all the advan-
tages that they would through
merger.
Commissioner Kutz said he felt sure
that the fare would at once come to
seven cents and that when the pres
ent agreement with the employees ex-
plred new arrangement could be
made which would make possible four
fares for 25 cents.
Representative Iampert said: per
sonally ! am of the opinion that the
only real solution is government
ownership along the lines Of the bill
introduced by Representative Keller.
But IL you will fix the rate at
cents for the Capital Traction Com
forcing a consolidation"
Representative Hammer suggest ed
that. if a decision is reached to in
clude the Potomac Electric Power
Company. SO that it's big earnings
can be used TO reduce car fares. the
proposition ought to be carried fur
ther and the gas. telephone and other
profit able public utilities should also
be brought into the proposed con-
soiidation.
Chairman Zihlman and Commits
that if the car fare were fixed at
cents. such a rate would wipe out the
fair return promised in the public
utilities act and that the Commission
ers would be promptly enjoined by
the courts.
Differing Opiaions.
When Mr.. Thompson took the stand
to give the figures in detail to show
how the fare might be brought to
a 10 cent rate to the Potomac Elec-
trio Power Company. Representative
Lampert questioned on what basis he
proposed to increase the charge for
electricity. Mr.. Thompson replied il
was based ON the ground that the
individual consumer would have to
pay more only for the fact that the
street railway company, being such q
large consumer. made possible the
operation Of large plant at mini
mum cost.
This provoked a sharp clash of opin-
ion. Representative Keller and Col
Kutz asserted quite positively that
the Potomac Electric Power Company
would be better off if IL did not have
to furnish power to the Washington
Railway and Electric Company. The
street car company, they said, is now
getting service below cost, and but
for carrying this load the power COM
pany would be able to reduce its
charges to individual consumers.
Representative Keller asked that his
bill be taken up by the committee and
a time set for a hearing.
The hearing on the street car prob
lem was continued to next Wednes-
day morning at 10 o'clock.