Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-04-14

way equipment. deteriorated from the
neglect and overuse of war time, must !
be restored; to accomplish this reSto-
ration the railway must be able TO |
borrow money on favorable terms 10 |
make good the railways credit II
must be doing a paying (even II only
paying) business. No one VIII
lend it money on endurable terms II IL
is compelled to do business at 4 loss
In this respect the community WEI
fare and the railway interest merge
and become Identical.
That the city may expand whole
somely into a healthier, more attrac-
tive and more prosperous capital II IS
necessary that a rapid-transit system
of transportation shall extend IN every
direction into the suburbs, renewing
urban congestion and eliminating or
minimizing Slums.
LonE-Haul Traffic Carried at a Loss.
In the beginning and sometimes for
many years these suburban rapid
transit extensions, so beneficial to the
whole community, are not in them
selves profitable. The carrying of the
long haul suburban passenger Is at
loss, to be met by somebody, as. 1or
example, by the urban street railways,
to which the suburban roads serve as
feeders; by the city short-haul pas
sengers; by the community as whoie
as taxpayers or by some combination
of these contributing factors.
In the case of Washington TINS
loss has in the past been borne mainly
and primarily by the Washington
Railway and Electric Company, Wnich
combined into one system two urpah
paying lines, and dozen or more IN
profitable lines, mainly suburban. Inc
company has been strengthened TO en-
dure this drain in the public interest
by the use and enjoyment OF large
possibly excessive, electric lisnt pro-
it's, and by the savings which resulted
from the payment of low wages 70
employees. Thus. the company, in ell
feet, shifted it's burden to the electric
light users and poorly PAID empIoyes'
But the workmen's wages nave
since the early days of the company,
cent, over 100 per cent in the last rev
wears. and the electric light rates and
profits have been cut down; Inc ran,
road stockholders are no longer apie
under existing conditions TO pear aio.e
this community burden. In the com
pulsory attempt they have ceased 70
earn dividends, SO far as the common
stock is concerned, and are even men
aced with indirect connscatlon OIL the
principal of their investment.
The nroblem is not solved if, through
or compulsory merger on
ineuuitabIe and conhscatory tcrnIe,
ruin comes to the seVeral tnou2au
men and women, largely Mashins
tonlanS, VINO CoHSliIutc - Tss.nopx,
ton Railway and Electric Compah!
stockholders.
No One Wishes a Losing Business'
Nobody will rush to assume the
nublic service burden which mas
proved so disastrous to these sIoch-
holders, neither the Capltai Irac
ton Company nor the municipality
municipal or government ownership.
In 1915 in opposing the purchase
and ownership of the local street
railways by the municipality, calleu
attention to the dlfnculty Oh nALns
price for the compulsory purchase
IF railways which would be fair to
both taxpayer and stockholders.
said:
ineton street railways are the men,
women and children who own street
Washing tonians. OF the 2,OO2 Capital
Traction stockholders, 1,551 reside in
the District, and LILO OF the Z,5oo
Stockholders are residents of Wash
ington. Some are large owners;
many are small owners. They nave
paid all sorts of prices for their STOCK
A few still remain who bought as
gamble at low prices in the period
of no dividends, experiment, failure
and pessimism. Most of the present
owners have bought after the losses
and anxiety of the pioneer and ex-
perim rental period had been endured
and some returns in dividends were
in evidence or immediate prospect
Many Influenced by a confidence, per-
haps foolish, in the future prospects
of the property, have paid excessive
prices for nge-manlpulateu ana
inflated stock.
Confiscn ton of Franchise Values.
sTf the Washington taxpayers will
buy the street railways from the
Washington stockholders who now
own them, how much will they fairly
pay? Will they give back to the
for inflated stock the money which
they have invested? Or will they dis
regard entirely the money paid in by
the present owners and confiscate the
future franchise values (Which the
stockholders thought they owned), by
paying only the amount necessary to
replace the existing equipment and
plant?
taxpayers either cheat Washington
ians as stock owners or cheat them
selves?
"If the taxpayers reimburse the
stockholders, including those who
they will be foolish. If they do not
reimburse the stockholders and con-
fiscate the future franchise value that
entered into the stockholders invest
ment Wnen ne bought, the transaction
will be in essence dishonest. III i'm
buying one must he either a fool or
a knave, one should mot buy.n
The same difficulty that arises in
connection with the compulsory sale
of both roads to the municipality is
met when the purchase, compulsory
sale or confiscation by involuntary
merger of one road for the benefit
of the community, another road, or
anybody else whatever is proposed.
Distribute Burden EquitabIy
Our problem today is to distribute
equitably the burden of bearing this
obligation among all upon
whom any share of it in fairness falls.
Under these circumstances what
ought each of the several groups of
Washingtonians concerned do in the
public interest?
Those who have profted by the
wise policy of carrying Iong-hauI
mt n loss in order that the
capital might expand over the whole
District and become the greater
are Cd some Of the
Railway and Electric
Company stockholders, CD the long
haul passenger, md (3) the taxpay-
ing community as a whole-the gen
eral public.
Ito Be Continued