The Washington herald., 1921-06-11
Commissioners Called Be-
fore House Committee
To Testify.
KUTZ TO CONSIDER
TRACTION QUESTION
Separate Utilities Board
For District Suggested
By congressman.

of car fares were taken last night
when Engineer Commissioner Kutz
promised the house District COM
mittee to take the question un-
Ger consideration" at the meeting
of the public utilities commission
Iext Thursday.
The three commissioners wera
summoned before the District COM
mittee last night to learn whether
the utilities commission would take
definite steps itself. or whether II
was waiting on congress to act.
Commissioner Kutz was the only
witness heard.
Representative Hammer. of North
Cal olina, suggested that a separate
utilities commission be created and
the District commissioners relieved
OF the burden Of regulating utili-
ties.
Meets With Approval.
This suggestion seems to meet
with the approval of the commis-
sioners. Captain oyster applauded-
The others grinned ,evidencinS sin
cere relief at the prospect OF get
ting rid of a thankless Job.
Kutz declined to say whether the
commission would order reduced
fares after August 81, when the
present fare rate expires. He pre-
sented figures to show that nat
rate Of cents could be Institutes
and yield an average dividend OF
ga per cent for the two companies.
Opposes Two Rates.
Commissioner Kutz declared 1t
was the belief of the commission
that separate rates of fare for the
two companies would lnjure rather
than improve the service.
He based his conclusion on the
assumption that the car riders
would switch to the Capital Trac-
tion company, create congestion,
and impede the service, with a fall
ing off in the patronage of the w
Il. & E.
He pointed out that the falling
off would make necessary an in
crease in rate on the latter COM
pany's lines in order to comply with
the la authorizing a fair return on
the valuation.
Might Hurt merger.
This Situation. Kutz maintained,
would operate against instead of
facilitating a merger. since both
companies would be guaranteed a
fair return o nvaluation under the
present law.
Several members of the commit
tee took exception to this reason
ing. holding that to still further in
crease the fare on the Washington
Railway and Electric lines. would
reduce their patronage to q state
where they would be forced into
bankruptcy or merger.
Basis of Rates
Questions of the committee de.
veloped that the utilities commission
based their findings of rate on the
combined capitalization Of the sew
eral companies rather than treating
them individually.
Since Kutz had stated that the two
companies were highly competitive
in the down town districts, Repre-
sentative Kunz, OF Illinois, insisted
they be treated individually rather
than collectively in reaching con-
clusions as to faro.
Representative Kunz asked Kutz
il 1t were not true that ono COM
pany could lease cars from the other.
Answered in the Affirmative, he
wanted to know why the shortage
of cars on the Washington Railway
and Electric lines was not relieved
from the surplus understood to be
in the barns of the other company
Question by Kunx.
In connection with the policy of
the utilities commission in basing
rate findings on the combined cap
italization, Representative Kunz
asked whether the same method
would be used IL one company was
making 35 or 40 per cent and the
other only 5. kutz said he would
not like to say that.
Representative Kunz said the law
does not provide that they should
be treted as a whole, but that eacn
company should be treated as an
Individual.
The commission said the commits
sion did not look at 1t in that light
WELL" replied Kunz. that prob
ably is the trouble with the trac-
ton companies in Washington"
Efforts to Protect.
Kunz then made the observation
that the utilities commission was
trying to protect the interest of the
w. r. & z.
The commissioner denied thar,
maintaining the law provided that
each company be given a fair re-
turn for its valuation.
Kunz argued that the Capital
Traction company should not be
gwen a higher rate than they asked
or are entitled to. and that that rate
is not a fair return, viewed from
the standpoint of the car riders.
The commissioner reiterated his
position that a uniform fare is
necessary to avoid congestion on
the lines of one company and the
loss Of patronage to the other.
During Rush Hours.
Representative Kunz pointed ont
that during rush hours congestion
could not be much worse than IL is
now. The loss of patronage. how
ever, he said. was deserved by a
company that could no compete with
more efficient company.
Representative Kunz developed
the point that when the application
for a fare increase was made last
March, 1T was made Sonly by the
Washington Railway and Electric
company. but that the Capital Trac-
ticn company was also given an in
crease. ~
The commissioner said the Capf-
tai Tractio fncompany had asked
t5s