The Washington herald., 1922-02-02
w. r. & E. Co. President
Tells of Proposed Car
Line Extensions.
SNOWSTORM COSTS
COMPANY $50, 900
Urges Utilities Commis.
sion to Continue Pres
ent Fare.

MerScr OF washington two
street railway companies awaits
action on the part of Congress, ac-
cording to testimony given yester-
day by William +. Ham, presiden,
Of the Washington Railway and
Electric Company, at a public hear
ing before the Public Utilities Com
mission.
Being questioned by Commits
sioner James +. Oyster, Mr.. Ham
said, I'VE arc not opposed to a
merger. but there is no particular
purpose in going further into the
] merger proposition at this time.
Nothing can be accomplished now.
We arc waiting on Congress. ana
Congress is waiting on itself"
| The first day of the scheduled
street railway hearing consisted
largely Of testimony submitted by
Mr.. Ham to show why . should
be no reduction Of street car fares
on the Washington Railway and
Electric lines. He represented his
&C mpany as desiring a continuation
of the present schedule. both for
his company and for the Capital
Traction Company. The latter COM
pany probably will be heard today.
Extensions Are Discussed.
A difference of opinion developed
over the question of car line ex-
tensions for the coming year. Mr..
Ham proposed that between 100000
and S4oo.o0o new capital be raised
to pay for any new extensions.
William Nick. Clayton. representing
the Federation of Citizens Associa-
tlons. asked why extensions were
not made out OF the company's sur
plus funds. Mr.. Ham replied that
he believed extensions were in
reality new investments and should
come from new capital.
The testimony shows that Mr..
Ham has in mind two extensions for
this year. He suggests the extension
OF the Eleventh street line from
Monroe street, where IL now ends.
TO Spring road. thsa through two
blocks In the same direction 10
Kansas avenue. and on Kansas ave-
| nue. tc Upshur street and Georgia
avenue. For this extension Mr.. Ham
| proposes an overhead trolley sys-
tenn. He said that, II will cost sIo7.-
$40. providing the company is not
assessed Tor the expense of cut
ting through from Spring road to
Kansas avenue.
Asks s Per Cent FarninEs.
Another proposed extension will
continue the Lincoln Park line now
running Out Fast Capitol street. az
Tar as Seventeenth and East CAPITOL
streetc. SO as to care for the trafTic
needs arising out of the construc-
ton OF the new Eastern High School.
This extension Mr.. Ham estimates
will cost S97.250.
Mr.. Ham stated that the companv
1as book surplus of sI,3OS,6S6. Os
He said the company had sufficient
surplus TO pay a dividend on the
common stock. Clayton asked wbv
this surplus was not used for ey.
tensions. Further questioning d.
veloped that Mr.. Ham did mot have
with him the figures representing
his depreciation fund.
Mr.. Ham said he believed overt
public utility ought to earn sf-feast
per cent on its valuation to at
tract capital. He said->the last fare
reduction was uniustifed, but that
tnis was not the time to ask for in
creased faFes. He asked that the
Iresentfares be continued and fixed
tor|at ieast one year for the sake
Oh stability In earning power.
Difference I'm valuattor-
The question of the present e.rr
ing power of the washington P.;i-
way and Electric Company deveI-
oped that the company's vaIuatior
oiners from that reached nv Tho
Public Utilities Commission. The
Iatters total valuation is s174se
s2I.73. while that of the cor,pa nv
Is SSl,529,444.4S. Figured on the
FORMER. the earning power for the
past year Is SIT per cent, while
ON the latter figure II was only
5:I2 per cent. Mr.. Ham stated thai
tnis years earnings on the same
valuations would be 4.3S per cent
and Z.fZ per cent, respectively.
lhere should be no difference be-
tween the fares charged on the
Washington Railway and Electric
Company lines and those ON The
Capital Traction Company in com
retitive territory. according TO Mr..
liam In explaining why the Can't
tai Traction Company's earnings
were greater than those Of his
company, Mr.. Ham said that CapitsI
Traction Company has 6S.S miles of
tracks. 33S cars, and-in ls20-I.46a
employees. as compared with 13I
miles Of tracks, 464 cars and 1888
employees of the Washington Raj
way and Electric Company.
Not to Cut Wages.
The Washington Railway and
Electric Company does no. intend
to make any reduction III wages
Tor. the coming year. as>)rding to
the testimony. IE 1920 their p3y
roll amounted to s3,;d2 Id3: thst of
the Capital Traction Company was
s2.5sf,537.
Commissioner Charles Keller asked
Mr.. Ham whether the fair way to
determine the earning rate 10 be
allowed would be to figure it on
the combined valuation of the two
companies. Mr.. Ham replied that
II would, provided a fair return
could be figured in that way for
each company.
Commissioner Keller then asked
Mr.. Ham whether the rate Of 5h
per cent to 6 per cent set for the
national railroads by the Esch-
Cummings act would be a fair rate.
Mr.. Ham replied that. railroads and
street railways were different
propositions and the same condi-
tions did not hold.
The present fare of f1ve tokens
for ss cents or s cents cash will
OoHfsH.ed on Page Too.