The Washington herald., 1921-08-11
". R. E. AGREES
UNDERPROTE:S'T
TOLONERFARE
Directors Say Company
Cannot Make Fair
Return.
LOOK TO CONGRESS
AND PUBLIC FOR AID
Submit, Relying on Peo-
pies Sense Of JUS
tice.s y

The board OF directors OF the
Washington Railway and Electric
Company issued a statement yester-
day accepting under protest the
Public Utilities Commissions order
which reduces fares to seven tokens
for s5 cents and electricity to s
cents per kilowatt hour.
The company expresses. confidence
that Congress will remedy the
street car situation by providing the
Washington Railway and Electric
Company relief from taxation and
other burdens" but reserves the
right to act later II Congress and
the public do nothing.
The Washington Railway and
Electric and subsidiary railway
companies cannot make a fair re.
turn on their combined valuation
under the new rate, the statement
says
Text Of Statement.
The statement follows: After
full consideration the board has de-
termined to abide for the present
By the commissions order Of July
2s, and to give the rates established
by it a fair trial during the time
allowed by law for an appeal from
s,Ich order.
That the proposed eighk-cent
cash fare with tokens, at the rate
OF seven cents will not yield the
Washington Railway and Electric
Company and its subsidiary railway
companies a fair return upon their
combined valuation is clear from
the fact that the evidence before
the commission showed that the
yield to these companies would be
but s.s7 per cent per annum upon
the fair value OF their pppperties
within the District OF .Cof1mbia. As
established by the commission by
its valuation. order Of September 4,
1918. plus Subsequent net additions
at actual cost.
Moreover. the commission. in its
opinion declares In express terms
that they themselves do not expect
the proposed rates to yield these
companies ay much as a fair return.
the commission saying in this con-
nection: The commission is Of the
opinion that no 'appreciable relief
from present conditions whereby
one system (referring to the WASH
ington Railway and Electric Com
pany) receives less than a fair re-
turn and the other an excessive re-
turn, can be obtained until some
change in taxation methods Is
adopted, or until a merger of the
several companies Is effected
TT is manifest that with such an
Inadequate rate of return Justice
cannot be accorded existing secur-
ity holders, nor can the. company
properly function and establish the
credit necessary for It's expansion
and development.
Could Raise on Commuters.
''our lawyers adyise us that un-
der such circumstances we have a
clear right to redress through rno
curtis, we might abandn curtail
Georgetown and Tennalytown,
washington-Interur and other
suburban lines which under the
rates fixed by the compassion will
be operated al an actual loss with
no return whatever upon the IN
vestments In these properties.
Nevertheless. the board OF direc-
tors of these companies have conf
dence in the future OF the city Of
Washington and OF the Washing
ton Railway and Electric Company
sSWem. We also have confidence
in an inherent sense or Justica
on the part Of the public whom we
serve. and in Congress which has
the power to right this injustice II
II will. through relief from taxa
tion and other burdens now resting
upon us.
Looks to Congress.
I'VE have, therefore, determined
to go ahead. making every effort to
serve the people Of this community
to the best Of our ability. to main-
tain the integrity of our property.
CONTINUED on PAGE TWO.