Evening star., 1923-02-08
iURGESABOL|SH|NG
D. C. UTILITIES BODY
Senator Says Commission
DereIict in Trolley, Gas
and Light Issues.

| In the Senate this afternoon Senator
Mckellar of Tennessee made a spirit
ed attack on the Public Utilities Com
mission of the District OF Columbia
! charging that it was exploiting the
| people in the interest of the stree
| car companies. He also said that the
| commission was not alone at fault in
| this regard, but might be found to he
derelict in gas and electric light rates
He favored the abolishment of the
J Public Utilities Commission.
! Some days ago." said Senator Nc.
! kellar, commissioner Keller of the
| District Public Utilities Commission +
published a reply to certain state.
ments ! had made about f1ve-cent
fares. in which he took occasion to
| say, i ought not to compla in of eight
cent fares here. when we have seven
! cent fares In Memphis, Nashville ano
chattanooga, and siX-cent fares II
Knoxville. In making this statement
| supposed Commissioner Keller must
! have thought l was in favor of such
| fares in Tennessee and was only op-
| posed to such fares in Washington
Mr.. Keller is very greatly mistaken.
Condition Parallels ID. C.'s.
+, Il am opposed to the high rate OF
! street car fares in Washington and
! am opposed to the present high rate
! of street car fares in Tennessee
| want to say that the same cause OF
! these high fares exists in Tennessee
| that exists in Washington, namely, a
| Public Utilities Commission. l think
| that three of these cities have a con :
! tract with their respective street rail-
! way companies for a fve-cent fare.
! know this is true in Memphis. II is a
f, charter contract just as it is In Wash
| ington.
However a public utilities law was
/ passed In Tennessee for the ostensible
purpose Of regulating public utilities,
! and there is here, instead of the COM
| mission regulating the public utili-
ties. 1t has permitted the companies
/ TO violate their contracts by raising
their rates of fare.
| Called Contract Violation.
! Il am in favor of abolition of the
public utilities commission in Ten
nesSee, just as | am in favor Of abol-
| ishlng the commission here in Wash
ington. In both places, without max
! ing any charges against the COM
missioners personally. the result OF
their action in regard to car fares
has been favorable only to the troll
Hey companies. In both places the
commission has assumed the right TO
permit the street car companies to
violate their contracts.
If the constitution and laws were
properly administered the action of
the Tennessee utilities commission in
raising fares in violation of contracts
would be unconstitutional and void
as contrary to that provision of the
United States Constitution which in
hibits the state from passing any law
impairing the obligation of the con-
tract
There is another similarity be-
tween the Memphis and the Wash
ington street car situations, namely,
that in each place the street car COM
panies are undertaking to secure
fares high enough to earn dividends
on watered stock.
Charges Stock watered.
"Ir Keller claims that the Wash
ington Utilities Commission is not
ington companies make dividends on
watered stock, but that the purpose
Of the commission is to keep fares at
such rate as will earn a reasonable
panies. We all know this is just
another way of providing for the
earning of dividends on watered
stock. The valuation is always mat
ter of opinion. The real question is
what amount of money has been in
1T has never been denied that much
OF the present stock of one of the
companies is watered and now is
selling at a very high price solely
because the commission has raised
the rate so high as to earn money
on such watered stock.
Other Lines Involved.
"The Congress owes 1t to the peo-
pie of the District to prohibit the
earning of dividends on watered
stock. regardless of valuation. The
Utilities Commission was created to
prevent the street car companies
from exploiting the citizens Of WASH
ington.
Instead OF carrying out the COM
missions purpose it is aiding the
street car companies in exploiting
the citizens. The Congress also owes
it to the people of the United States
to set a good example to the rest of
the country in prohibiting the ex-
ploitation of the people of the Dis
trict Of Columbia for the benefit of
these stock manipulatorS.
IL want to take this occasion also
to say that high street car fares is
not the only subject upon which our
Public Utilities Commission here is
at fault. 1 have no doubt that the
commission is permitting the gas
company and the electric light COM
pany and other public utilities to
charge higher rates than are permit
ted in their contracts.
\ aAu n a. Az -~sas