Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-03-17
FARE TO NEARBY POINTS
Interstate Commerce Commission Is
sues Order Of Reduction.
COMPANY'S PLEA REJECTED
Declaration in Behalf Of st. Elmo, st.
Asaph, Del Ray and Other
Points Sustained.

The single-trip fare Of Is cents by
the Washington. Alexandria and Mount
Vernon railway from Washington to
Four Mile Run, ST. Elmo. s.. Asaph.
Mount Ida and Del Ray, in Virginia. is
unjust and unreasonable and for the
future must not exceed 10 cents.
A decision to this effect was handed
down today by the interstate COM
merce commission in the case Of o. c.
Beall against the Washington. Alex
andria and Mount Vernon Railway
Company.
Mr.. Beall. on behalf Of himself and
others. in his petition to the inter
state commerce commission. COM
planned that the present fares ex-
acted by the railway company between
Washington and the points named
are equal to those applying from
Washington to Alexandria. although
the distance to Alexandria is two miles
further than the average distance be-
tween Washington and the group Of
places mentioned.
Company's Plea for Present Rates.
The railway company contended for the
present fares on three grounds. namely:
First, that the passenger travel from
the points named Is light and, therefore,
q somewhat higher fare is justified than
would be maintained II the trarrlc were
Of greater density: secondly, that any re-
duction is unwarraured, because 1t Is
only within the last few years that the
stock or the road has ever PAID any divl-
dendS, and those paid nave been very
meager and have recently been reduced
II not abandoned altogether" and thiroly,
1t denies that the road is subject TO the
act 10 resuAaie commerce.
After reviewing the record and capital
tzation of the road, its revenues, the num-
Der or trips ana the numoer OF pas
Sensers, the interstate commerce COM
mission reaches the conclusion that II all
the trips between Washington and the
communities mentioned mad been charged
for a ten-cent fare and none Of sucn
trips under rOund-trip or commutatlon
fares. the net loss TO the railway COM
pany would have been but $l.UJu: but the
company would still have been able to
meet lis interest charges on its large
capital. pay all operating expenses. de-
clare dividend Of per cent on its
stock, and lay aside surplus Of $52.OOO.
Financial Condition.
The commissions review finds nothing
distressing in the financial condition OF
the railway. The total capital. the de-
cision states, issued against its nineteen
S5.95O,OOO. or 500. .S94.74 per mile of line.
composed OF $2.45O.OOO per cent bonds
secuI ed by mortgage on the entire prop
erty, of which $Iio,OaO Is held in the
treasury, and $1,OUOUUO OF capllal stock.
Neither the amount OF money Invested
in the property devoted to the service or
the pubic, nor the consideration received
from the sale of the stocks and bonds Is
disclosed; and in the absence of expiana-
| ton. this seems plainly a case OF gross
0v,sr l,0ot 81 -
clares. In 1yUs, the decision. recites. the
company paid interest on its bonds. /
! per cent dividend on its capital stock
and carried forward a net surplus Of
$l1. .452.21: in 13Uy, in addition to the in
terest charges paid. there was a dividend
OF per cent on the stock and a net
surplus of $29 1878 and III 1910, after
the payment OF interest charges and z
per cent dividend. there was a net surplus
Of $53, 466. IL.
Income Last Year.
Last year. the decision states, the in
come was SS3.466.4l, OF which $3OO0O
was devoted to dividends and $53. .4U6.4l
was credited to accumulated surplus
Therefore it adds, had no addition
been made to the existing surplus OF
$685. 1853, the company could have paid
a 3 per cent dividend on its S1,5OO,OOO of
stock, as well as the 8 per cent interest
upon the bonds. Assuming that the
actual investment in the property Is
$780, 900 per mile Of line. or $l,OOU,uOO in
all, the earnings in 1910 were sufficient.
after laying aside q surplus, to return
about IL per cent upon the investment.
Text Of the Order.
The order Of the commission reads as
follows:
"That the above-named defendant be.
and It Is hereby. notified and required, on
or before the 1st day OF May, 1911. to
cease and desist, and for a period OF two
years thereafter to abstain, from charg-
ing, demanding, collecting, or receiving
its present single-trip fare of 10 cents
for the transportation Of passengers from
Washington. D. c., to Four Mile Run,
st. Elmo. st. Asaph, Mount Ida and Del
Ray, In the state OF Virginia, or from
Washington to any Of said points: which
said fare Is found by the commission in
its report to be unreasonable.
1T is further ordered. that said de-
fendant be. and it is hereby. notified and
required, on or before the 1st day OF
May, 1911, to establish, and for a period
of two years thereafter to maintain and
apply to the transportation OF passengers
from Washington, D. c.. to Four Mile
Run. st. Elmo. st. Asaph, Mount Ida
and Del Ray, in Virginia. or from WASH
ington to any of said points. single-trip
fare not in excess Of 10 cents; which said
fare is found by the commission in its re-
port to be reasonable.