Evening star., 1921-06-24
DRASTIC UTILITIES
MEASURE FAVORED
BY SUBCOMMITTEE.
Likely Will Report Out Both
Hammer and Keller
Bills.
MERGER PLANS OPPOSED
BY NEARBY ALL MEMBERS
Meets Tuesday to Frame Recon-.
mendations for Full D. c.
Body.

Body.
The subcommittee considering street
car legislation for the District today
agreed. on motion of Representative
Lampert Of Wisconsin. to meet Tues
day morning to frame report to the
full District committee, which meets
the following day.
The open expression of opinion by ,
members OF the subcommittee fndi-
are in favor Of reporting out one or
both of the drastic bills before it.
These are the Hammer bill. which
proposes abolishing the present pub
lie utilities act, and the other. the
Keller bill which proposes municipal
ownership. These four members. who
appear to stand as a unit, indicate
also that they are opposed to the Ball
Focht measure, which would grant
permission for the Potomac Electric
Power Company and the Washington
Railway and Electric Company and
other traction lines in the District to
merge.
These four advocates of drastic leg
acknowledgements Lampert of
Wisconsin. Kunz of Illinois. Sproul OF
Illinois and Hammer of North Caro-
lina-have a strong following in the
full District committee, it is indicated.
Mr.. Ham Testihes.
William F. Ham, president of the
Washington Railway and Electric
Company and of the Potomac Electric
Power Company, was before the sub
committee today and answered ques-
tions regarding earnings. cost OF
operation and problem OF financing
both corporations, but especially with
reference to the Potomac Electric
Power Company. Mr.. Ham emphasized
that the one reason his corporations
are seeking authority from Con-
gress to consolidate is to make easier
new financing to the amount OF $1O.-
0O0, 900, which must be done within
the next two years.
Mr. Ham explained that the net
earnings of the Potomac Electric
Power Company in 1920 were approx
| imately $4,000 less than in 1917.
| larger and the company had been
| called upon to make great expendi-
lures to meet wartime demands. many
of them by the federal government it,
self. He said that the power cor
poration has been called upon to per-
form a service at a price not COM
mensurate with its cost.
I'VE must keep working twenty-four
hours day and cannot stop while
Congress deliberates." Mr.. Ham said.
he explained lndC III MOST
| the manager of a business can put on
| improvements or expansion when costs
| are high, but that the Potomac Electric
Power Company had been forced to
make these extensions and improve
| ments in spite of abnormal costs. He
told the committee that the company
F! is now expending one and three-Quar-
ter million dollars for new construc-
| ton work, much of which is not rev.
enue producing. But these improve
| ments are being made to better and
| sta biliZe the service.
Power Loss Explained.
Mr.. Ham was questioned by Repre-
| sentative Woods of Virginia and by
Representative Keller of Minnesota re-
, garding the statement made before the
committee recently that one-quarter Of
all the power generated by the Poto-
mas Electric Power Company is not
accounted for in returns. He explained
that this was not an inordinate loss
through conversion and transmission.
giving figures to show how the loss oc-
ours from a technical standpoint. He
was asked also regarding the charEe
that some of the power is being sold
in Baltimore and Annapolis. His an
Swer was that it is sold by the Poto-
mac Electric Power Company to the
Washington Railway and Electric Com
pany, and by this company to the
Washington, Baltimore and Annapolis,
which sells some power in Annapolis
and at the government radio station.
Mr. Ham answered at length. with
intricate tables Of statistics. q multi
tude of questions regarding the imam
cling of both corporations, most OF
which testimony had previously been
given at hearings before the Public
Utilities Commission and the House
District committee. He was also call
ed upon to explain the purchase. for
s425 900 cash. by. the Washington
Railway and Electric Company, Of
two-thirds interest in the Great Falls
Company and the later transfer of
these holdings to the POTOMAC Elee-
stock. This, he said. fairly represented
a return on the cash outlay and car
rying charges. In regard to the $10.-
600, ,000 financing which must be done
said he had had a survey made by
the Stone & Webster experts to con-
firm the figures Of his own engineers.
Tells Of Protest.
Mr.. Ham emphasized that a great
protest is being made that Capital
Traction riders are being forced to
nav too high a rate. II the merger In
put through as urged they will still
be forced to pay rate which repre-
sents a fair return on the fair valu-
alton of the properties as a whole, as
determined by the Public Utilities
Commission. which is exactly the
same way in which the present rate
was fixed. He said he could see no
more Injustice being done the riders
on the Capital Traction Company
than is being done on both compa-
MES by compelling short-haul riders
to pay for the service given the long
haul patrons.