Evening star., 1924-05-12
HAM SAYS sc FARE
HERE IS IMPOSSIBLE
W. R. & E. Would Have Lost
$I.O0G,00O Last Year by Cut,
President Ayers.
FIRST TIME AT HEARING
Capital Traction Case Completed
by Senate Committee.

Electric Company would have fallen
more than n million dollars short OF
earning expenses. with no provision
for interest on debt or return to IN
vestors. William +. Ham, president.
told the Senate District committee
today.
This was Mr.. Hams first appear
ance on the witness stand in the
hearings that have been in progress
for several months on Senator Nickel
iars bill TO restore the nickel rate of
fare.
Previous sessions have been devoted
70 the testimony of the Capital TraC
tioa Company, which concluded its
case this morning with a statement
from President George T.. Hamilton
TO the effect that the companies could
not maintain the present high stand
ard of service on Il 0-Cent rate.
In closing his presentation Mr.
Hamilton thanked Senator Ball for
his constant interest in the proceed
ings and thanked Senator Mckellar
for his searching inquiries, because,
Mr.. Hamilton said, they enabled the
company to present its true condition
20 the committee.
Radio Cuts Traffic.
President Ham of the W. r. and Il.
testified that in addition 20 the auto
mobile and the motor bus the radio
has now come into the situation as a
contributing factor in reduction of
street car traffic by keeping folks
home at night. summarizing the
testimony he will give, Mr.. Ham as
serted street car fare cannot go down
~
traffic rises.
Wages. Mr. Ham continued. con-
stitute about half Of operating eA-
penses AMI the increases IN pay
been II large factor in the raises III
fare that have occurred.
"f we had the same operatrns
conditions we had in 1913 ana l9io
we could so back 10 the o-celi' ia'e'
the witness testified. :.
Senator Mckellar observed tnat II
the rate of fare was doubled the
company would probably go INTO re-
ceivership. Mr.. Ham replied the com
pany did not want TO double the
fare. :..s
Hastily studying charts submitted
by the company. senator McheiIaI
said il appeared the company haa
been forced TO stop paying diNldehos
on common stock since the fare De
gan to go up, which he referred
10 in support Of his contention that
increased fares hurt the company
Costs of Operation.
Mr.. Ham contended this was an
erroneous conclusion to draw from
the figures He said the increases
in wages, coal and all other items
entering into railway operation were
so great during and following the
war that the company was almost
constantly before the Utilities Com
mission seeking higher rates. which
he said, came very slowly.
The president of the w. Il. & E.
then pointed out that there have been
two reductions in fare 9y the Utilities
Commission in the past few years.
Senator Mckellar suggested that
they were reductions without diff
ference in the situation.
Mr.. Ham countered with the state
ment that if the reductions ordered
by the commission had made no diff
ference in the situation the COM
pany would like to have them back.
Although it will hardly be possible
10 complete the hearings in time for
the committee to pass on the bill If
Congress is to adjourn early in June,
Senator McKellar has indicated that
he may try to attach the 5-cent' rare
provision to the District appropri-
Senate.
To show that a scent fare would be
ruinous to his company. Mr.. Ham
testified that for the year 1923 the w
r & f earned only 424 per cent
on the Utilities Commissions valu-
alton of SIS, S,042,2S9.65.
Income Last Year.
He indirectly contended the COM
pany was entitled to per cent
return on valuation, by stating that
the income for last year available
for return was s49S,6So.7 short of
per cent on the valuation. 1t was
at this point he revealed that had
the scent fare been in effect last
year the company would have. show
ed a deficit of 81, 1865 in operat-
ing expenses.
Mr.. Ham said that next to wages,
coal is one of the main factors in
The present rate of fare. Last year
The average cost of coal was $3.50
per ton as compared with 1925 a ton
In 1914. The freight rate alone on
coal, Mr.. Ham continued, is s3.13 per
ton, almost as much as the total
price delivered in 1914.
Notwithstanding the additional
cost of construction and maintenance
of the underground system and the
added difficulties and expenses in
connection with the operation of that
system, the present rate of fare
within the District of Columbia COM
pares favorably with that Of other
cities OF similar size equipped with
The overhead trolley" asserted Mr..
Ham.
Average Dividend Shown.
One Of the charts submitted showed
that since the organization of the
Washington Railway and Electric
company in 1902 the average annual
rate of dividend on preferred stock of
Ss,5OO,00O has been 4.43 per cent The
average annual rate of dividend on
common stock of s6,5O0,0 has been
al per cent, giving an average rate
or dividend on all stock for the
twenty-five years of 3.55 per cent.
When the values of our various
properties are finally ascertained. -
said Mr.. Ham. sit is our confident be-
lief that said values will exceed our
total Capitalization, proving con-
cluslvely that there is no overcapi-
talization or So-called watered stock.
However, the question of capital
ization does not affect the rates
charged the public, as such rates are
fixed, regardless of capitalization,
erty."
The hearing adjourned until next
Monday. when Mr.. Ham will resume
the stand. When the Capital Trac-
ton Company completed it's presenta-
tion Senator Ball thanked Mr.. Hamil-
ton for the complete and thorough
history of that company given to the
committee.
SCOUTS TO SEEK FINDS