Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-12-17
viii have to meet large expenditures
Tor paving between the tracke
Asks q Rate Of Fare Neeaed.

VIII have to meet large expenditures
Tor paving between the trackA
Asks q Rate Of Fare Needed.
When Mr.. Ham was presenting evil
dence to show that street railways
should be allowed return of 8 per
cent on fair value, Nj. clayton asked
him what rate of fare the Washing
ton Railway and Electric wouhi need
TO earn 8 instead of 6 per cent
The witness replied that he had not
estimated what rate Of fare an per
cent return would require. When MIR.
Clayton reminded him that he had spent
considerable time presenting evidence
IN support Of an per cent return MI.
Ham replied:
II am arguing for il. but invent
Mr.. Ham said that in deciding this
case the commission should bear in
mind that the several rates of fare fixed
IN the last two years have fallen short
by approximately 81 2f5 goo Of giving the
company Per cent on its valuation.
matter OF justice this should be made
up at some future daIe.
Mr.. Ham became involved in col
loauy with Col. Kutz when he declared
equity six months ago when it assumed
that part of the relief needed by the
Washington Railway and Electric would
be made up by Congress through a
cnanSe In the tax law.
Question Of Relief In Courts.
"Why didn't you seek relief in the
-courts?' replied Chairman Kutz.
Mr.. Ham replied that the rates Of
fare have been fixed for such short
periods that the company could not
hope to get relief FROM the courts
before the rates expire.
Chairman Kutz then told Mr.. Ham
that the commission six months ago
fvNyN ExAA
seek part of the relief needed by the
Washington Railway and Electric
through change in the tax laws or
to fix appropriate rates of fare for
each COMPANY The colonel told the
witness that it would have been far
worse for the W.. r. and r. if the
commission had given that company
the rate of fare its conditions war.
ranted and the Capital Traction Com.
pany a lower rate Of fare.
Both Mr.. Ham and Mr.. Hanna tes-
titled. in answer to q query from
Chairman Kutz. that the income taxes
of the two companies are claSSed the
same as local taxes as An operating
expense.
Col. Kutz told the company officials
that one court and several commits
sions have decided recently that the
income taxes of street railways
should be taken out OF net revenues
and not regarded as an operating ex-
pense- He served notice that the local
commission intends to consider this
question in the present case.
W., h. 4 A. Allowance.
Col. Kutz indicated by questions put
to Mr.. Ham that the commission also
intends 10 consider the reasonable
ness of the Accent allowance coll
lected by the w, X. and Z on pas
sengers carried by the W, B. and A.
within the District.
Mr. Ham reminded the commission
that this payment Is axed by a per-
petual contract between the COM
panies. The chairman said the COM
mission would not attempt to inter-
fere with the contractural relations,
but that it could consider the reason
ableness of the contract in connection
with its decision on the fare question.
George A. Ward of Columbia
Heights asked Mr.. Ham whether if
at some future date the W., r. and e.
needed 10-cent fare he would be in
favor of giving the Capital Traction
that rate also.
The witness replied affirmatively.
adding that such a situation could be
corrected by the new railway tax
law advocated by the Commissioners.
That the Capital Traction Company
has been losing passengers heavily
during the past six months was shown
by the testimony Of MI. Hanna He
gave the percentages Of decrease in
follows: May, IL ITO per cent: June.
IL 7-1a; July. IL lie: August, Is 1-1o:
September IS: october. is Tie: No
vember. 1910 per cent.
Mr.. Hanna told the commission he
expects there will be further de-
crease Of to 8 per cent in business
during 1871