Evening star., 1921-07-18
FARE CUT PUT Up
TO UTILITIES BODY

ndIn Says I cents Can BE
Withstood if Electric Rate
Is 10 Cents.
The proposition to reduce street car
fares in the District by increasing
rates for electric current was brought
formally to the attention of the pub
lie utilities commission today, follow
ing an unsuccessful effort to have the
plan considered Saturday during the
street railway hearings.
William F. Ham. president of the
Potomac Electric Power Company,
testifyins before the commission to-
day on the company'S application to
continue the existing electric charge
OF Sla cents per kilowatt hour, told
the commission that street car fares
could be reduced to cents if the
company is permitted to charge 10
the price which formerly prevailed
Effort was made by William NICK
Clayton. representing the Federation
of Citizens Associations, to have
stricken from the record all refer
ence to 10-cent charge on the
for the purpose of considering con-
tinuation of the existing rate of S1a
cents. Chairman Kutz overruied the
objection.
$:,OOO.OOO Is ImpOunded.
While the Potomac Electric Power
Company is collecting the old rate Of
10 cents. it is impounding, under a
court order. 11a cents of every 10
cents collected. The amount impound-
CD n 10 tn t.
Mr.. Ham stated that a 10 per cent
rate would not be unreasonable. and
insisted that inasmuch as the Wash
ington Railway and Electric Com
pany owns tn estock of the Pepso,
the commission could. with all legal
ity and propriety. permit the power.
company to charge a fair rate for the
service it renders. which. in the opin-
ion the witness. would be 10 cents,
and at the same time allow the rail-
way company to meet it's difficulties
through the use the electric COM
pany's revenues.
The witness stated that the sub
urban lines of the railway company
are being operated at a loss and that
this condition cannot be kept up in
definitely. Some way will have to
be found, he said, to meet this loss,
and the best way. apparently, would
be to permit the railway company
to use the profits of the power COM
pany, which accrue from the sale of
electric current at reasonable rates.
Clayton Questions Claim.
Mr.. Hams statement that the sub
urban railway lines are being op-
Grated at loss was questioned by
commission should investigate to de-
termine if this is fact. The attor-
ney for the Federation of Citizens
Associations frequently challenged
statements by Mr.. Ham.
He charged the company with hav.
with the prime object in view of OBJ
tanning a 10-cent electric rate, al
though it's petition would imply that
it desires only a continuation Of the
present S1a cent rate.
At the railway hearing before the
Saturday Mr.. Clayton was
in preventing consideration
Of the plan to bolster up the railway
earnings with power company's reve-
nues. He blocked consideration of the
plan on the ground that the question
of power rates was not before the
at that time.
Efforts to Block Fail.
Todays efforts by Mr.. Clayton to
definitely block consideration of this
proposal failed. because Chairman
Kutz ruled that the petition filed by
the Pepco was sufficiently broad in it's
terms to permit of the Introduction of
for ten-cent rate. The
petition is so worded that doubt is
created as to whether the company
had in mind the eight-and-one- half
cent or the ten-cent charge when it
referred to the existing rates.
But the company, elsewhere in Its
petition leaves no doubt as to it's de-
sire for adequate relief by praying
the commission to grant it whatever
it believes may be necessary to en-
able it to function efficiently.
VIII Install Storage Battery.
When the hearing began today Mr..
Ham made an announcement which
was received with every satisfaction
by representatives of the large num-
Der Of business houses who were
present. He said that the company
had placed a contract for q storage
battery to cost 100000. which will be
installed before November in it's sub
station on 10th street. This improve
ment is expected to go far in prevent
ing Interruptions in the service. The
company also is spending $4,000 on
to the Benning plant.
These improvements, together with
the new storage battery. will remove
the principal causes of service inter-
ruption, Mr.. Ham said.
Base Plea ON Figures.
An array of figures presented by Mr..
Ham in the early part Of his testi-
mony formed the backbone of the
plea for continuation of
existing rates. These showed net in
come during the year ended May
81 last. to have been $1,311, 1880.
which is equivalent to a return on
the investment of 7.64 per cent.
During this period the present Sx-
cent electric rate was in effect only
between September Is and May 81,
the old rate of 8 cents having been
in effect prior to September Is. Mr..
Ham stated that had the charge Of
Sk cents applied throughout the
year the company's net earnings
would have been $1.417,735.37. This
would have given a return of SIC
per cent.
A statement also was presented by
the power company head showing
what situation would have obtained
had the former Scent charge ap-
piled throughout the twelve months
ended May 81. The net income would
have been $1.027,735.37. or a return
on the investment of 5.91 per cent.
Discussing operating expenses, Mr..
Ham said it cost thirty-three hun
dredths Of cent per kilowatt to
generate power at the Benning plant
In 1917. In 1920 the cost had advanced
to sixty three hundredths, and in 1921
10 seventy-eight hundredths The in
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