Evening star., 1921-10-07

receipts and operating expenses are
taken as a basis.
Factors to BE Considered.
when it is considered that the
Capital Traction Company had gross
revenue of s5,626,432.S4 for the year
ending April so. 1921. and operating
expenses of s3,966,645.57. including
the 4 per cent gross receipts tax.
crossing policemen and paving tax.
which left net income of $l.s76,-
319.l7 available for return, which is
more than 1OE per centum on the fair
value of their property, while the
Washington Railway and Electric
Company earned less than per cent
on it's actual physical value, the nee
essity for legislation which would
put them on more equitable basis
becomes apparent.
The gross receipts tax of per
cent, which is now paid by the COM
panies, is in turn collected from the
car riders and if the Washington
Railway and Electric Company was
relieved of this tax and the tax col
lected in the form of an excess profits
tax, the District would receive the
same amount in revenue, but the car
rider would receive a reduced rate of
fare, and the abnormal profits now
received by the Capital Traction Com
pany and applied to improvements
and surplus would be reduced.
However, your committee feels
that the situation could be best met
by combining the various street rail-
way properties within the District,
granting or fixing a rate of fare to
yield them a fair return on the physi-
cal value of the combined properties,
and thus giving the car riders re-
duced rate of fare, and with this fact
in mind they have provided in section
OF the bill that if the two COM
panies do not merge by July /. 1922,
then the Public Utilities Commission
or the District shall fix separate rates
or fare for the Capital Traction Com
pany and the Washington Railway
and Electric Company and it's sub
sldiary companies.
Utility Law Provisions.
Congress in passing the public mill
itles law for the District of Column
Dla provided that every public utility
doins business within the District of
Soiumbia should be required to fur
nlsh service and facilities reasonably
saIe ana adequate, and in all respects
lhade by any such public utility for
any 1acliity and service should be
Ieasonably just and on-discrimina-
.ory, ana that every unjust or unrea-
rnnaiti or discriminatory charge is
p.nnlblted and declared unlawful
'iS IAdt the rate of fare
now charged by the Capital Tract;nn
COMPANY - mp pan is unreasonable and that it
of imposed tbo @ TO maintain the earnings
9I % the Washington Railway and
Eiectric Company, we believe that
PUBIC interest demands that these
= eolpanIes De consolidated and that
a lower rate of fare be esta blished.
and II this is not done under the lib
eral provisions and terms of this
measure. then the commission should
esta olish separate rates of fare, based
panies. e'''-
In the figures given the actual
Vaiue OF the companies, as ascertain
ed by the Public Utilities Commission
as of December 1. 1920, is taken. and
not the capitalization. which in the
case of the Capital Traction Company
Is about $3,00O,0O0 and in the case Of
the washington Railway and Elec-
trlc Company about $10.000.OOO more
than the values fixed by the investi-
cations provided for in the act of
March 4. 1913, which is the law
creating the Public Utilities Commits
sion.'