The Washington times., 1913-01-13
COMMUTERS LOSE
FIGHT TO INQUIRE
into CAPITALIZATION
Hearings on Old Dominion Line
Rate Increase Held Before
Examiner.

Attempt of the complainants in the
Old Dominion line rate increase hearing
TO go today into the capitalization of
the road met defeat. Edgar Smith, the
examiner for the Interstate Commerce
Commission, ruling in effect against the
commuters. In neighboring room in
the Commerce body's building, hear
ing went on at the same time over the
alleged increase in rates of the Wash
fngton-Virginia Railway Company.
This second hearing amounted to but
little because Z. b. Fox, clerk in the
Interior Department who was the COM
plainant at whose instance the rate
changes were suspended pending the
hearing, did not appear before Examiner
Prouty today. All that happened was
that ]. w. Rich, superintendent of the
Fails Church division, testified that
rates had been lowered instead of raised
from Alexandria to Washington. II
remains only for John S. Barbour, at
torney for the road, to file written
brief to the commission.
Mr.. Rich testified that a twenty-five
trip communication book is now being
sold for $50 instead of sl.7o as before,
and that the fifty-trip book has been
lowered from s3.I5 to $50.
Alexandria citizens have complained
that intra-Virginia rates on the line
have been increased since the merger,
but over this the Interstate Com
merce Commission has no jurisdiction.
At the other hearing the question of
capitalization of the Washington and
Old Dominion line came up as soon as
h. vii
President F. e. Wright again on the
stand. John B. Daish, attorney for
the commuters. promptly asked Mr..
Wright about the cost of coStruc-
ton of the road and the price paid
for q certain piece of real estate.
Wilton Lambert attorney for the
company entered objection and the
question was argued at length.
Mr.. Daish contended that Mr.. Wright
in his testimony last week raised the
issue himself when he testified that
no dividends had been paid and none
was in sight as the old rates stood.
Mr.. Wright and Mr.. Lambert return
ed this by saying that il was an in
cidental statement only, that the
question of the reasonapleness OF the
rates on the Great Falls branch bad
nothing to do with capitalization,
that it would have to be shown first
that they were trying to.raise rates
in order to pay dividends. whereas
vigorously, was to meet running eX-
penses and lay aside small sum for
badly needed repairs and mainten-
ance.
THE situation is unique" said Mr..
Wright. "On this line a large number
of persons are absolutely dependent for
transportation TO their business in
Washington, and punctuality of Sery-
ice is necessary. Now this road has
been in existence six years, and most
of its equipment has lived its natural
life. It must be replaced. We have
been making no money, and we must
have some for imperative maintenance
costs"
Nj. Smith, the presiding examiner
said he would rule that Mr. Wright
should answer Mr.. Daish's question.
though he personally concurred with
Mr.. Lambert that the question as to
capitalization was not proper. The
ruling was so made. he added, so that
1t could be certified up to the Inter-
state Commission and finally settled
there. Mr.. Lambert formally advised
his client not to answer, and the matter
was at an end.