Evening star., 1920-03-24
To Grant Fare Increase it
Shown 1t Is Imperative to
Continuing Operation.
Is REPLY TO CITIZENS,
WHO SUGGEST RECEIVER
Strong Protest Is Made Against
Zone System-Hearing Adjourns
to Next Wednesday.

ing an increase in fare. II 1t is shown
that the company needs additional
revenue to continue operating.
this clear at today's session OF the
hearing on the application OF the
Washington Railway and Electric
Company for a seven-cent fare with
a two-cent charge for transfers:
Commissioner BroWnloW foiao"ea .
expressing the belief that the pubic
would suffer a greater hardship II
the company were forced into re-
ceivership than II it were given the
revenue 1t needs.
Point Ii Brought Out.
This point was brought out when
George A Ward of the Mount Pleas
ant Citizens5 Association and w. l.
Swanton of the Columbia Heights
Citizens Association suggested a re-
ceivership for the Washington Rail-
way and Electric Company as a solu-
ton of the local traction problem. Mr
Ward said he thought recefversnip
would result In wiping out the oeots
Of the company ~ as1 s1anton took the
view that If the road went into the
hands of a receiver 1t might hasten
a merger Of the two local companies
At this point Commissioner Kutz
said it was useless to consider this
question further because the COM
mission would feel it had failed In
it's duty If it took such action. Com
mi missioner Kutz suggested to MT.
Swanton that one Of the advantages
1t would equalize the earning power
of the two companies and thus make
a merger more probable. He asked
Mr. Swanton If he favored zone
system as a means toward bringing
about a merger. The witness replied
Suggestions Are sought.
|, The Commissioners sought from the
citizens who testified suggestions for
and Electric without zone system
or without increasing the rates of the
Potomac Electric Power Company.
Mr.. Ward protested against q
further raise in fare to the Capital
Traction Company, since that COM.
pany' 10 not seeking such increase
Commissioner Brownlow asked Mr..
Ward what he thought the effect on
the comfort of the travelling public
would be II the Capital. Traction Com.
pany vent back 70 @ e @ii, nxs.osns ns,, asre
way and Electric Company went up to
I cents on that dGte. Mr.. Ward re-,
piled that such action would un-
doubted1y Inconvenience persons VINO
had to walk several blocks to Cap
ital Traction line. but; said he be-
lieved the Capital Traction has shown
ability to handle its trafhc. Com
missioner BrownIow pointed out that
one of the most congested lines In
the city at present Is a Capital Trac-
tion line.
Protests Zone System.
A strong protest against the zone
system was lodged by Miss Gertrude
NJ. McNaIly, representing the employees
ing.
hardship upon virtually every employe
at the bureau, because they come from
business district and down to the bu
reau." said Miss McNally. There is
another thing we do not feei that the
people of the District should pay. That
is the expenses incurred during the
strike on the Washington Railway and
Electric Company. We feel the stock
holders should pay for that. and the
resultant loss should not be placed on
passengers Of the line"
Shortly before Commissioner Kutz
adjourned the hearing, which will be
resumed next Wednesday at 10 o'clock,
he assured William NICK. Clayton, rep
resenting the public utilities commit
tee Of the Federation of Citi3ens' AS
sociations. that at that time he would
be granted ample opportunity to pre-
sent evidence and argument regarding
the zone system or the legality of the
establishment of such a system by the
Commissioners.
Mr. Ham Again Testines.
Mr.. Ham resumed the stand at tho
opening of the hearing today to be
cross-examined by William Nick.
Clayton Of the Federation of Citizens
Associations.
In answer to a question from Mr.
Clayton. Mr.. Ham said the recent re-
routing Of the cars of the Washington
Railway and Electric Company has
resulted in an economy in operation.
although it has not materially
changed the financial condition of the
company. He said the rerouting also
has made room for future improve
ment of service.
DO you regard service on your lines
as good now?" Mr.. Clayton asked.
Excellent" Mr.. Ham replied. He
added that it was not as good as the
company would like to make 1t, but
good in view Of the conditions under
which the road Is operating. He re-
cited the difficulties which made good
service impossible during the war
period.
will a 7-cent fare and a 2-cent
charge for transfers improve service ?''
Mr.. Clayton inquired.
Mr.. Ham replied that 1t probably
would put the company in q position to
continue it's present standard Of service.
He said that rate Of fare would not put
the company in a strong enough hnan-
cial condition to develop as it should.
ReconstructinE Summer Cars.
Asked If the company anticipated add
ing to the number Of cars 1t is now oper-
ating, Mr. Ham replied that number
of summer car bodies are being recon-
structed into modern cars.
Mr. Clayton then asked whether, If the
| company would cut in half the approxi-
mately $945,000 1t expects to spend on
| improvements to track and equipment
! this year, it would earn the per cent
! on it's valuation as fxed by the commits
sion without a fare increase.
Mr.. Ham replied that he did not think
this would be true. because II the i'm
provements planned by the company for
this year are not made the cars will
not stay on the tracks. He emphasized
| that ali of the improvements proposed
are imperative to safe operation Of the
road.
| Mr.. Clayton called attention to the
fact that the company paid dividends to
stockholders in 1918 and 1919 by draw
| ing the surplus fund. but did not make
the last semi-annuai payment He in