The Washington times., 1921-02-05
MERGER SCHEMES
CALLED W.R.E.R RU&
Designed to Block Consolidation
of Two Street Car Lines,
Mapes Declares.
(Continued from First Page.)

Continued from First Page)
many copious tears over the financial
condition of the Washington Railway
and Electric Company" Mapes re-
minds suggestively,
Going into the fiscal conditons OF
that system, he refers to the htiga-
ton now pending in District court
over the decision of the Public utii-
Ties Commission changing the rate for
electricity from 10 cents per kiiowat
hour to 81 cents, involving an I'M
pounded fund amounting TO over
81 .6oO. 900. which would have TO Do
repaid to the consumers for over
charge. IL the court should sustain
the fndings of the Public Utiities
Commission. ,,.
"In uly, 1917, the Public Utilities
Commission of the District, the re-
port states, acting upon its author.
ity to regulate and fix the charges OF
nublic utility corporations doing busi-
ness within the District of Columpia-
reduced the rate charged for electric
current by the Potomac Electric
Power Company from 10 cents 10
cents per kilowatt hour.
.aThe Potomac Electric Power Com
many opposed that action OF the COM
mission and appealed the matter TO
the courts, where Ii Is still pending.
Pending the final settlement OF the
case, the Potomac Electric POWER
Company collects ten cents per ktlo-
wat hour from it's customers for its
service, but 1t is required to impound
the difference between the ten cents
and eight cents, or two cents, per
Kilowat hour. On September 8, 1s2o'
the Public Utilities Commission
change the rate from eight cents to
eight and a half cents and ordered
that one and one-half cents be I'M
pounded after that date. On January
IA, 1921, this impounded fund
amounted to over 81 SOC. 900. and II in
creases at the rate OF about S4ooo,ooo
per year.
"If the court sustains the finding
of the commission, this impounded
fund is to be repaid TO the customers
OF the power company. II the court
finds for the power company, the
fund is retained By the company.
ADMITS DISADVANTAGES.
'-The Washington Railway and
Electric Company operates at some
disadvantages WITHIN tue District OF
Columbia as compared with the Capt.
tai Traction Company. At the same
time, Il Is not necessary to shed too
copious tears over the financial con-
dition of the Washington Railway
and Electric Company. Some OF It's
subsidiary lines, at least, were hrst
Installed quite as much for the pur-
pose Of enhancing real estate values
as for anything else.
The company never paid a dtvi-
dend on its preferred stock until
December /, 1904, nor upon It's com
mon stock until December 1, 1909. 1t
is submitted that II has come
through the past few years much
better than the average street car
company throughout the country.
According to it's own report made
to Congress January 81, 1921. cover
ing the year ended December 81,
1870, Il paid interest on all of Its
outstanding bonds and mortgages,
per cent dividends on it's preferred
stock OF ss.5o0,ooo and put into sur
plus during the year the additional
sum Of s22i,lss,t0,
"The common stock of the company
Is $4,000, 900, but how much OF IL
represents actual value, II any, It Ia
difficult to ascertain, II IL easy to
see, however. that II the court should
sustain the contention OF the company
in Its contest with the Public Utilities
Commission relative to the charge for
electric current, the company would
be enabled to pay very substantial
dividend upon this common stock.