The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-05-29
P R0POSAL
IS BEATEN
BY z TOT
VOTE
Senator vainIy Reviews Tes-
timony Taken Before Dis
trict Committee

ITlCI NOmmIII69
The Senate today rejected the
Mcclellan five-cent street. car fare
resolution by vote Of A to 81.
The vote came on a point Of
order made against the resolu-
ton in the form of an amend
ment to the District appropria-
tion bill, by Senator Ball.
The point of order was sus-
tanned by Senator Cummins, the
presiding officer, and the Sem
ate took similar action on an app
peal taken by Senator Mcclellan.
Debate Hour and q Hall.
This move was made by the SEN
ate following a debate Of an hour
and a half. in which Senator Nc.
Kellar stated his position to the
Senate. He reviewed The testimony
taken in hearings continuing over a
five months period before the Sen
ate District Committee.
Senator Mcclellan declared that
the Capital Traction Company was
making II per cent on its capital
and said that at least $500, 900 of
its present capital is watered stock.
Watering Of Bonds.
Way back in 1895 a littIR com.
pany called the Rock Creek railway
followed a big company br tho
name Of Washington and George
town railway, said Senator Mcclellan.
"This peculiar action was taken in
order to validate the watering Of
bonds held by the larger company"
Reverting from the question of
capitalization to fair value, Senator
Mcclellan said that the Public Util-
tiles Commission had found the
Lair value OF the Capital Traction
company in 1919 to be $13,255, 900.
In addition to that the company
has been putting its earnings into
capital account and was asking the
street car riding public of Wash.
ington to pay dividends upon itG
increased value.
""The people Of Washington are
being mulcted by the street car
companies" said Senator Mcclellan.
Il have never heard of a more
flagrant case of exploitation Of the
public" Mcclellan paid tribute to
wee President Hanna Of the Cap
ltal Traction Company, saying he
had made g. frank and complete
exposition Of all the facts before
the District Committee. He told
the Senate that If they were &C.
quainted with the facts they would
undoubtedly support his fivA-cent
fare proposition.
Attacks Commission.
His earlier attack upon the Public
Utllties Commission was renewed
by the Tennessee Senator.
Ihe commission has performed
no duty since 1919 except to do the
things the company wanted Il IN
do" he continued. 1.-THE commission
Is Of no value to the people Of
washington now"
+ Turning to the Washington Fail.
way and Electric Company. Senate.
Mcclellan declared that frenzied
finance of the worst sort had beeh
employed In the organization a
the company. He said that So.
100000 had been divided annon,.
the promoters and stockholders
without cash equivalent being paid
In, at the time of reorganization.
He also accused the company OF
having attempted to cover up Ger.
tain dubious transactions"
Debate is Stopped.
Senator Mcclellan was cut off
from further debate upon his propo-
sitioh at IL o'clock; and Senator
Ball, after making a brief defense
OF the local traction companies,
made point of order against the
amendment. He was supported by
Senator Phipps, chairman Ut the
District Appropriation subcommit-
tee.
After citing presidents, Senator
Cummings ruled in favor of the
point of order.
The debate upon the District APP
preparation Bill thereupon con.