The Washington times., 1924-01-21
NJ KELlA
ATTACKS
FARES.
Eight-Cent Rate Robbery
Senator Declares at Open
ing of Hearing.

Declaring that the financing Of
the Washington Railway and Elec-
trio Company was "the greatest
piece of buccaneering which have
ever heard" Senator Kenneth Nc
Kellar of Tennessee today scored
local traction operations in OPEN
ing his plea for a Scent fare be-
fore the Senate District Committee.
Opens in Bitterness.
Flashes Of bitterness marked the
hearing. Several times Senator
Mcclellan declined to be questioned
by Senator Ball, chairman of the
committte, whom he accused OF
being biased and prejudiced in favor
of the traction companies.
II resent the assertion by the
Senator from Tennessee that I have
prejudged this case" said Senator
Ball. "I have an open mind on
the subject"
Senator McKellar asserted that
he had had numerous conversations
! with Senator Ball, in which the
! latter strongly opposed the scent
fare proposition.
Throughout the hearing Senator
Mcclellan spoke with great heat and
| emphasis, at one time turning upon
William F. Ham, president or the
Washington Railway and Eiectric,'
and George e. Hamilton, president
of the Capital Traction Company,
and shouting in their faces:
"You gentlemen may not r1de
upon your cars. do. 1t is rarely,
if ever, that l get a seat. Charging
8 cents for service like that is rob-
berry,"
! Senator McKellar frequently said
there was "a greater amount Of
financial jugglery in the creation of
the Washington Railway and Elec-
tric Company than in any other
corporation l have ever heard OF.
He based his assertions on the Pub
lie Utilities Commissions report of
1919 dealing with the valuation of
! the two local companies. He de-
clared that he had hard work getting
a copy of this report, indicating that
efforts were being made to exhaust
the supply and conceal it from the
public.
Ham Tells of Earnings.
At one part of the hearing Sena-
tor Mcclellan took his seat and told
Senator Ball to proceed with 'his
speech" indicating great irritation
because he had been interrupted
with his presentation of the case.
After q while, however, a better
feeling was restored and President
Ham of the Washington Railway
and Electric Company analysed GER
tain of the figures submitted by
. Senator Mcclellan in the Public
| Utilities Commissions report. 3
President Ham did not discuss
the financing Of the w. r. and e.,
but contented himself with saying
that the company was now earn
ing and 2-10 per cent on what
the Public Utilities Commission
fixed as the fair value Of its stocks
and bonds. Senator McKellar had
centered his fire on the large
amount Of water stock which,
he said, was issued through the
Company of New York at the time
| about 1900.
! A speedy mathematical calcula-
ton by Senator McKellar brought
out the fact that the dividends now
being paid by the W. r. & e. Co.
are partly based upon the earnings
of the Potomac Electric Power Com
/ pany, but he declined to go into this
| phase Of the w. r. and e. financ.
ing until later.
Senator McKellar laid stress upon
the fact that the original compOA-
ent companies of the w. r. and F..
bought $10,695. 900 IN cash at the
time the W. r. and q. was formed
and that approximately $22 900
was issued against this purchase.
He declared the people Of Washing
! ton should not be forced to pay
1 cash fares for interest upon all Of
this excess stock "for which not
81 was turned into the treasury Of
the Washington Railway and Elec-
trio Company" e-G
Scores Commission. .a
Senator McKellar in conclusion
said that the Public Utilities Com.
Llate fares, ostensibly for the pur-
chase of decreasing them. Instead
of reducing fares. he said, the Com
mission has increased them, and
he thought It was high time to en-.
force the contract obligations Of the
two companies as contained in their
franchises and which call for a
5-cent fare.
| Senator Ball.. Capper and Cope
land attended the hearing. Senator
Copeland appeared sympathetic
with the stand taken by Senator
Mcclellan while Senator Capper was
noncommittal. The committee adj
journed subject to the call Of the
chairman.