Evening star., 1927-12-01

| railway companies are operating one.
man cars exclusively and are using a
total of S,743 cars. Two hundred and
sixty-six companies supplement their
| two-man car operations with one-man
cars and are operating total of H.
COS, and, all told, there are 468 COM
| panies in the United States operating
Il ,351 one-man cars. Every one of our
large cities has extensive operations
Of this character and many of the
most important ones may be cited as
operating one-man cars exclusively.
THE general statement can be
made that we can see no reason why
modern, efficient, and safe one-man
cars may not be operated upon all
street railway lines in the city of
Washington and that their operation
will supply good service in every way
the equal of that supplied by the two
man operation and in many cases
superior; that the additional man is
not justified by necessities: that his
compensation constitutes an econo-
mic waste, but if the citizens do not
desire the operation of such equip
ment and feel that their city is de-
preciated by its use, they should be
entirely excluded, but the citizens
should understand that to obtain the
service of two-man cars 1t will cause
perhaps a decided increase in car
fares"
A section of the report devoted 10
the elements affecting valuation for
purchase of the transportation com
panies explained that the situation in
regard to the w. r. & Il. Co. was very
much beclouded by reason of it's asso-
citation with an ownership of the Po-
tomac Electric Power Co. "ConSidera
ton of this ownership brought to light
the fact that the only reason that the
company has been able to continue its
corporate existence and pay its divi-
dends," the report declared. lis be-
cause of the liberal contribution made
to it through the earnings of the Po-
tomac Electric Power Co, whose stock
it owns, and not through any earnings
brought about from street railway
operations.
Under present-day methods of
regulation, it is decidedly in the public
interest that there be a complete
enforcement of power and railway
companies. While the car rider has
been benefited to an extent by the
Substituting of the railway company
| by the power company, 1t is always
questionable whether the power user
has been so benefited. There is no
reason why power company investors
should be deprived of their return in
order to help the car rider.
Recognizing these facts, one of the
fundamentals of any plan should be
the complete separation of the power
company from the railway company.
Capital fractions Position.
''The Capital Traction Co., however,
is in a vastly different condition and
its book records are unhampered by
charges and counter charges. This
company is able and has been able for
period of years to earn per cent
dividend upon it's outstanding capital
stock, and the fact that in the last two
years it failed to earn the full amount
by a sum of $4,000 is not a matter
for great consideration, but merely an
indication that it is receding from it's
exceptionable position IN the transit
scheme of this community"
The general basis of merger agree
ment, as outlined in the report, fol-
lows:
In any plan of merger we recon-
mend the community and the company
should agree for a term Of SO years
that the operation of the transporta-
ton lines should be conducted along
the plan hereinafter described, and it
is the hope that this agreement will
remove all cause Tor litigation and
that henceforth all parties will ear
nestly strive for the success of the un-
dertaking. The company to agree not to
sue for nor attempt to obtain the
valuation to which, from recent court
decisions, it is manifestly entitled,
viz, s61 ,000, 900. but will negotiate 70
determine not valuation, but a rate
base for the purpose of this agree
ment, the community, after having
agreed to the establishment of a rate
base, to agree that such rate base will
continue through the life of the con-
tract.
'The community to agree that COM
petition with the company, whether by
rail lines, motor bus lines, or by other
means OF transportation, shah not be
permitted; and to effect this agree
ment and still guard the community
against the possibility of being de-
prived of additional service which
might be both necessary and con-
venient the company should be given
a six-month option on any franchise
which it is proposer to grant. If, in
such an event, however, the company
declines to accept the franchise and
exercise it's privilege under this option,
then the community to be at liberty to
grant the franchise to any other
party which is willing to accept it at
the same terms as 1t was available to
this company. The company also to
agree that as new capital becomes
necessary the rate base shall be in.
creased only by sum sufficient to
pay the charges on the new capital
and, on the other hand, the commun.
ity to agree that such additions to thu
rate base are proper. Having reach.
ed this agreement, both parties agree
that the standard of service to be
rendered in the future shall be in ac.
cordance with the standard promul
gated by the Public Utilities in their
| order, No. 1SS, as amended by their
| order No. AIT.
Provides For Reserve.
These regulations are sufficiently
| stringent and yet flexible enough to
assure a satisfactory service and OBJ.
viate that additional expense which SO
often occurs in agreements of this
kind, which provides for the setting
up of a separate board which must
| deal with these matters and from time
| to time determine the service.
| Furthermore, it does not destroy the
company's initiative and interest in
| supplying service Of proper quality
| in the most economical manner. II
is not generally recognized that in
supplying such service considerable
amount of ingenuity may be exer.
cised, with surprising results, in the
elimination of waste and unnecessary
expenditures"
| According to further details Of the
merger plan, the consolidated com
pany should agree to appropriate from
it's surplus surplus reserve fund OF
81 ,000, 900 which would be placed in
the custody ard under the control OF
the Public Utilities Commission. AL
excess net income of the company
above the agreed return would be
paid into this fund and when il
reached total of $1,500,000 the stree1