Evening star., 1920-02-15
MUST SOON DECIDE
| ON TRACTION FARE
Utilities Commission Faced
by Expiration of Order Pro-
viding Present Rate.

The Public Utilities Commission is
still undecided what it will do with
the plea of the Washington Railway
and Electric Company, submitted
more than a month ago, for straight
7-cent fare. This was stated yester-
| day by Lieut.. Col. Charles w. Kutz
chairman of the commission.
Even if the commission should con-
clude not to grant this request of the
Washington Railway and Electric
IN the next two months what the rate
| OF rare shall be after May !. The
order fixing the present rate of fare
| at four tickets for a quarter expires
the end of April and provides that the
fare shall go back to 5 cents, with a
charge of cents each for transfers.
| on May ] unless otherwise ordered in
! the meantime.
| The commission has ruled that the
companies are entitled to a return of
| o per cent on their valuations. With
the Washington Railway and Electric
! Company claiming that it is earning
only little more than 8 per cent with
the existing rate of fare, it is declared
to be foregone conclusion that that
road will protest vigorously against a
! return to the f1ve-cent rate with a
two-cent charge for transfers on
May /.
Will Seek Pay Raises.
The union employees of both roads
have announced that they will seek
an increase in pay within the next
two weeks, which makes it even more
UNLIKELY that the fare can be reduced
on May l. William F. Ham already
has stated that the Washington Rail-
| way and Electric cannot possibly grant
a further increase to it's employees at
| the present rate of fare. much less at
1 the old Of fc oho
| for transfers
/ If some street car legislation can be
enacted by Congress before May as a
| result of the hearings now being held
by the House District committee,
| either to bring about merger or to
relieve the financial dilemma of the
Washington Railway and Electric
Company. it is declared. it might
| change the outlook on rate of fare
| after May /.
1t is extremely problematical, how
ever, whether both houses of Congress
will be able to act on any local street
| railway legislation within two months.
Still Favor Their Bill.
There were indications at the Dis
trict building yesterday that the Com
missioners still believe their street
car bill is better than any other solu-
tion to the traction problem that has
yet been suggested at the hearings
before the House committee.
The Commissioners bill abolishes
| the present form of railway taxation
and provides that the District shall
| collect SO per cent of earnings above
| s per cent and IS per cent of earnings
above z per cent.
Since the Washington Railway and
| Electric Company is not earning even
the per cent return to which the
| commission says it is entitled, it
would have no tax to pay. whereas
the Capital Traction Company would
pay substantial tax. if it's earnings
| exceeded a 6 per cent return.
! j. HI. Hanna, vice president and
general manager of the Capital Trac-
| ton Company, is expected to be the
first witness when the House COM
mittee resumes hearings on the street
| car situation Tuesday morning The
Capital Traction Company, through
President George E. Hamilton. has
voiced it's protest against the Com
missioners' bill as being unfair to
that road.