The Washington times., 1921-07-26
BAND CONCERT.

lower earning capacity in contrast
with the Capital Traction
Under the law and the court de-
cisions, the power company Is en-
titled to the same profit as the
street car company-"a reasonable
return on the fair value Of ITS
property used and useful in the con-
duct Of ITS business"
To increase it's rate, therefore, from
81 cents, which produced SIS per
cnt profit last year, would give 1t
that much more than a reasonable
return" and there are many people
who argue, with much force and
conviction. that light rates should
actually be REDUCED, because the
company is already making MORE
than a Reasonable return-which Is
usually CONSIDERED to be or not more
than 7 per cent.
Loopholo for Consumers.
Furthermore. It is pointed out. also
with force and conviction, that for
the Utilities Commission to IN
CREASE electric light rates now
would be fatty illegal, because of the
law and court decisions referred to
above, and that any consumer of
electricity could easily have such an
order set aside in court.
The wholesale consumers Of cleo
trio current have protested vigor-
ously against any increase and have
indicated that they would promptly
so to court II the commission issued
an order granting an increase.
In addition to these practical OBJ
staoles to the Pepco plan. there
r%a 1c of,,y1 Tn,
volved in making the consumers Of
one character of public service help
pay for an entirely different kind
Of public service. even when. as In
this case. It might result in a RE.
.DUCTION in the rate charged for
that other service, for the street car
company has said 1t could take "A
reduction Of l cent in street car
fares IL II were permitted to charge
10 cents for electric light and power.
The Pepco plan has another inter
probation, also. The Washington
Railway and Electric wants to alb
sorb the Potomac Electric Power
Company, together with its right to
sell current. That was the import
of the Woods bill. amended last
week in committee. however, in such
a way as to PREVENT that result.
II the street car company could get
Congress to enact law permitting
II to merge with the power company,
the effect would be to repeal the old
law prohibiting street car COM
pany selling current.
What The Joker Meant.
Tho effect, further, would be to
give the merged company An op
portunity to claim a rate of return
on street cars AND electric light suf-
ficient to produce a reasonable re-
turn on the property Of BOTH con-
sidered as one, which would prob
ably mean higher electric light rates.
The Utilities Commission, many
members of Congress and citizens Of
the District have thus far success
fully prevented the passage Of any
such bill
We come now to our common de-
nominator, found yesterday in the
existing plan and which, I think
we will find, runs through every
plan. That common denomination Is
MERGER OF THE TWO BIG
STREET CAR COMPANIES"
In the first place, the Pepco plan
Is not. economically sound.
In the second place, 1t is not leg
ally sound.
And in tho third place, II looks
rs II neither tho Utilities Commits
son nor Congress will approve 1t.
So far as that plan Is concerned,
then, II points, as a solution Of our
traction problem, to the consolida-
ton Of the two major street rail-
way systems into one system, where
in the difference In earning power OF
the two companies can be equalized,
AND FARES REDUED.
Tomorrow afternoon-The differ
ent fare plan"