The Washington times., 1921-07-25

one person on the Sdpitdi ifACuoil.
A rider gets on a Washington
fare, and rides for a long distance.
The space he occupies would. on
the Capital Traction Company. be
occupied by perhaps TWO people, IN
the same length of time. over the
same distance. and the company
would, therefore, get TWO fares for
the time and expense required by the
washington Railway and Electric to
get ONE fare.
Difference IL Big Item.
The difference. Of course, is not
as great as two to one, but there
is a great difference. with this result:
1t costs the Washington Railway
and Electric considerably more, per
passenger per mile, to operate It's
system than II costs the Capital
Traction.
This means that the EARNING CA.
PACITY Of the Capital Traction is
greater than the earning capacity Of
the Washington Railway and Elec-
trio, and when we understand that.
we have good, solid, intelligent
foundation on which to stand in
working out the traction solution.
Let's not forget that fundamental
difference between the two com.
panies.
Rates OF fare which the two street
car companies may charge are fixed
by the Public Utilities Commission.
This commission was created eight
years ago by an act of Congress. and
was given very broad powers by
Congress over the street car COM
panies. the gas companies and the
electric light company. The act
creating 1t provides that its mem
bers shall be tho Commissioners OF
the District Of Columbia.
The Commissioners, therefore, are
the Utilities Commission, but as the
latter they function independently of
their positions as District Commits
sioners. They elect their own chair
man, and for several years Col.
Charles w. Kutz, the army engineer
member of, the Board of Commission
ers. has been chairman Of the IT'LL
tiles Commission.
Under the law and court rulings. the
Public Utilities Commission, in fixing
street car fares. must follow q course
like this:
/. Ascertain and fix the fair value
OF the property Of the street car COM
pany used and useful in the conduct
of its business.
2. Then fix the fare to be charged
the public at figure which will pay
the operating costs of the company,
depreciation on its property, taxes to
the government and leave 1t a ''REA-
SONABLE" RETURN on its fair
value, as previously ascertained.
Following this course, the Public
Utilities Commission has fixed fares in
Washington at cents cash. or four
tokens for 80 cents. with free transfers
on company lines and a charge of /
cent for inter-company transfers.
Under this fare. during the last year.
the Washington Railway and Electric
has earned return of 6.61 per cent on
its fair value" and the Capital Trac-
ton has earned 1884 per cent.
Tho reason for the difference is the
condition which I explained concern
ing the long haul" and short haul"
business of the two companies.
Fixed for G. T. G. Return.
In tho case of the two street car
companies what the Utilities Commits
sion did was to fix the fare at figure
calculated to give a reasonable return
to the company with the smaller earn
ing capacity, because. II the fare had
heen fixed at figure that would have
given the Capital Traction only rea.
sonable return (say about per cent?
the Washington Railway and Electric,
the commission believed. would have
earned almost nothing.
So that's the condition we are in
today. On the one hand, all people
who ride on street cars are paying
what they feel is too high a rate OF
fare. Capital Traction riders feel
this speciality On the other hand,
while the Capital Traction is making
more than a reasonable return land
has offered to REDUCED the Washing
ton Railway and Electric contends
II ia making LESS than a reason
able return. and is trying to induce
the Commission and Congress to lie.
IL get more money, from any avail.
able source.
/ said that each of the ten plans
had one common ACKNOWLEDGEMENTS
ger of the two major street car COM,
panies.
This fact stanxs out clearly after
considering Plan No. I. II the two
companies were consolidated into one
system, fares could be reduced and
still the profitable lines formerly be-
longing to the Capital Traction Com
pany could carry the Improbable
lines formerly belonging to the
Washington Railway and Electric.
In addition. of course, there would
be economies incident to singleness of
administration and operation.
Tomorrow l shall discuss the
''Pepco plan" which is one of the
suggestions under consideration for
increasing the revenues of the Wash
ington Railway and Electric