Evening star., 1932-07-10
Commission Studies Reveal
Gas, Phone and Electric
Services Prosper.
TRACTION COMPANIES
SEEN NEAR SLUMP END
Improvement Expected Through
Reduced Competition and Fed
eral Workers Economies.

Oesplte depressed economic condi-
tions, the earnings of every District
public utility corporation, with the lone
exception Of the long-struggling street
car companies, is headed for unex-
pected gains in 1882.
Financial studies made at the Public
UTILITIES Commission yesterday showed
that the net income OF the telephone.
gas and electric companies for the first
I flVe months Of this year ran far ahead
Of the corresponding period of 1891
The condition is considered even more
remarkable in view Of the fact that
gas and electric rates are lower.
For the almost pauperized street car
companies. however, prosperity is still
walking backward. The losses of the
Capital Traction and Washington Rail-
way and Electric combined were
S2l0,0o0 greater than in the first i've
months Of last year.
Public utility experts have drawn
two conclusions from these studies:
First, that the depression has had no
apparent effect on the use Of tele-
phones, or the consumption Of gas and
electricity, but the reduced rates, on
the other hand, have resulted in in
creased sales.
Second, that the traction companies
| VIII soon face the specter. of receiver
ship unless there is marked advance
in net operating income.
Betterment Expected.
There is a feeling at the commits
sion. however, that the car companies
have just about reached the depth of
the depression and that the advent OF
Fall will see turn for the better. Sum-
mer always has brought a slump In
street car riding.
The optimism at the commission is
based on the belief that a number of
| the low-rate taxieabs, which have cut
deep into the revenues Of the car COM
| panies, will go out of business rather
| than pay the higher license fees de-
manded under the new District license
| code. Another ray Of hope for the car
! companies is an expectation that Gov
| ernment workers, in economizing to
! Offset the 8.3 per cent pay cut, will
/ use the street cars instead of private
| automobiles in riding to and from
4 work.
| Although reduced electric rates did
/ not go into effect until February, the
net earnings Of the Potomac Electric
Power Co. at the close Of May, accord
! ing to commission records. were $685.
| TAO in excess of the first five months
| of last year. The present domestic
| rate is SO cents a kilowatt hour,
! whereas the former rate was AZ cents.
! The increased return IS the direct re-
suit Of greater consumption. the records
| showing that the power company sold
| 17,647,000 more kilowatts of electricity
in the first five months of this year
than it did in the same period Of 1881.
Gas Company Smiling"
The gas company likewise, fgura-
lively, is smiling at the depre5-
sion with its reports to the COM
mission for the first five months Of
1892 showing an increase in net oper-
ating income over the first f1ve-month
period of last year amounting to S69.-
| eco. Increased consumption also is
responsible for the gas company's i'm
proved earnings, the figures showing
365s,000, 900 cubic feet of gas sold in
the first five months of 1882, compared
with 3,417,430,000 cubic feet . in the
same period last year.
The net income Of the telephone
company jumped from S3,836,000 in the
first five months Of 1881, to $4,0l4,000
for the same period this year, an in
crease of S176,000. At the same time
the number of phones in service ad-
vanced from 170,531 to l8l ,2l2, an m
crease of 10,681.
panies. however. tell a different story.
The Washington Railway and Electric
dropped S152 900 more in the first five
months of the year than it did in the
same period last year, whereas the Cap
ital Traction showed a further decline
of $50 900. Altogether, the two COM
panies reported a loss of nearly 100000
revenue passengers in comparison with
the total carried for the first FIVE
months of 1881.
w. r. G. E. 1881 Losses.
In the first five months Of 1881. the
Washington Railway g. Electric lost
26, 500 900 Passengers. In the same pc
riod this year the loss totaled 30.196,000.
For the Capital Traction the first FIVE
month loss last year was 100000,
compared with 100000 for the same
period this year.
The net return Of the power company
may be cut down slightly in the re-
manning months Of the year, If the COM
mission is successful in a plan an
nounced yesterday to make the utility
pay the 3 per cent sales tax on elec-
tricity instead Of passing it on TO con-
sumers
Mai. Gen. Mason NJ Patrick, chair
man of the commission. said that from
the legislative history of the sales tax
on electricity in the revenue act adopt
ed last month, he is satisfied that "the
true intent of Congress was that the
power companies should pay the tax
and not the consumers"
Change In Conference.
Such was the wording Of both House
and Senate bills when they went to con-
ference, but in conference the wording
was changed so as to make the con-
sumerS pay. A point Of order was made
against this in the Senate, but Vice
President Curtis ruled it out of order.
On an appeal from this decision, the
ruling was sustained.
The effect of the present wording Of
the bill, Gen. Patrick said, is to in
crease electric rates to consumers. He
said the commission is unwilling to
enter any order at this time on the
subject, since the whole question Of
electric rates here is tied up in litiga-
ton over the consent decree under
which rates used to be adjusted, but
that the question has been submitted
to counsel for opinion.
The commission has informed OFF,
cials Of the power company Of its stand
in the matter, but has not asked for
the power company's views. The COM
pany is charging the tax to the con-
Sufners 1t became effective June 81.