The Washington times., 1924-12-12
Utilities Depreciation and
Higher Car Fares
BY BILL PRICE.

Because the Public Utilities Commission saw fit to grant
small increase in bus fares to the Washington Rapid Transit
Company, conditioned upon the purchase Of modern bus
carriers the suggestion has been advanced that the street
railway companies Of the District may apply for increased
fares
Our street companies wouldn't have leg stand on
IN any such application and the idea may well be
dismissed Traction operators pretty sensible of
folks ANYHOW and realize that there practical fare limit
beyond which it is not safe to co.
There street railway extensions in contemplation
here forced construction of subways relieve congestion
such will be necessary in the future Consequently
new financing material increase in capital expenditures
will have to be met by further burdens upon riders
That Washington street railway companies may meet
losses in gross due to the increased auoo
bes the Public Utilities Commission has consented many
economies that not the interest Of the public and rapid
transportation one Of these being the which
Showdown quick service and tie up automobile and other
traffic the streets
The main why there will be no fare increase
that both street railway companies doing exceedingly we'll
The Capital Traction which, like all traction through
out the country hauling decreasing number of passengers
has waxed financially Fat for years owing to the neouitabe
street railway conditions here 1t continue to lose gross
Cial shape
The Washington Railway and Electric Company is through
Its ownership of the Potomac Electric Light Company such
prosperous condition that it is paying good dividends on
common stocks which few years ago often labeled by
utilities experts virtually water upon which dividends
regarded in the local stock to bring about frequent
news stories of steady upward in prices on the
local exchange the suppoon being that there plenty of
money in sight still further increase dividends to holders
Revelations in the affairs of the bus company point to the
eCSSSy Oh COMMISSION adopting
tons for depreciation by all public utility
Whatever the technical be of treating depreciation
the general public understands that the allowance of epreca
ton to public utilities for the sole purpose of repair and
rebuilding 50 that properties may be kept up maximum
standards The public cannot understand any plan by which
depreciation may be added to capital expenditures and the
people forced to pay reasonable returns upon it.
When local public utilities permitted to deduct heavy
depreciation reserves from earnings the public fails to
comprehend why the Public Utilities Commission does not
require that these deductions go back into utilities
properties in the shape of busses cars new rails
and other equipment
Up to this time Washington public utilities have done about
as they pleased as to depreciation reserves setting aside the
amounts that suited hem and making of them in almost
any way they desired
The time has arrived for the Utilities Commission to adopt
clear regulations to depreciation its uses and to bear
IN mind that methods by which each company sets up its
own system OF depreciation suited own plans
are not in the interest of the public and comprehensive under
standing
The people of Washington compelled do Just what
tney are told in the matter of and fares electric
gh gas and telephone rates The other side of proposition
should be compelled to live to standardized plans de-
probation modern economies etc What is sauce for the
goose should be for the gander.