Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-12-30

Basis OF Claim.
THE companies' claim that q reduc-
tion OF at least 2 per cant In volume
or traffic may be expected Is based
primarily upon the probable further
reduction in the number Of govern
m mel employees. While the volume Of
tranc during the six months period
ended October 81, 1920, is S.5 per cent
less than during the corresponding
period or 1919. large part Of this
loss may be attributed to the lower
rate Of fare and to the greater activi
the latter period. The Congress was
not in session during the summer OF
1870 ana the exodus from the city
during the months of July, August
and a. ,S September was reflected directly
month of October. 1920. the volume OF
trafhe was 7.S per cent greater than
the average for the preceding three
months. while in 1919 the October
traffic exceeded the average for the
per cent: Traffic data covering other
periods during which there has been
an appreciable reduction in govern
mental forces show that such changes
DO not necessarily create q CORE
spending reduction in the nuHaber OF
passengers and that any such tend
ency is more than offset by the in
crease due to the normal growth OF
the city.
Rates Analyxed.
The commission has carefully ana
lyZed the rates submitted by the petit
TONERS for special and chartered cars
and Is of the opinion that the proposed
new rates are reasonable and just ana
bring the charges for this service more
nearly in conformity with the rate paid
for individual transportation The total
revenue from this source is small. ap-
proXimately 81, 900 per annum within the
District OF Columbia. which will be ia
new rates. II these adjustments are
made the estimated net revenues for
the ensuing Six months will amount to
approximately $451 1885, 49,
'ln arriving at the fair value of their
properties for the purposes Of this case
laid down by the commission in its
previous orders, adding to the amount
announced by the commission in Its
valuation order number 339 as of June
~, 1919. the net additions to property
since that date at their actual cost,
taxing the weighted average of the
amounts added during the past six
months. The allowance for materials
and supplies has been increased by
SSl,709.32. which is the actual increase
over the commissions allowance in Sep
TENDER. 1919. as shown by the books.
Sasn worrying capital has been increased
py $l27.09O. based upon one-twelfth OF
the operating expenses Excluding taxes)
for the year ended October 81, 1929. The
total fair value on this basis as of the
last mentioned date. as estimated by
the petitioners, amounts to SIC 1853, 563. So.
fnis amount Is not accented by the COM
mission as final, but Is used for the
purposes Of this case
Rate OF Return.
The rate of return on this fair
value. using the estimated net reye-
nues given above, will equal 5.35
in the rate Of fare petitioned for were
granted 1t would Increase the com
panies' revenues on an annual basis.
according to the testimony of the
companies by $33S.55670 and the
per cent.
The evidence shows that during
the seven months in which the pres
ent rate of fare has been in effect
the net income of the Capital Trac-
ton Company available for return,
is SS57.43s. representing an annual
rate of return of 11.2 per cent on
the fair value of the comrany's prop
erty as determined by the commits
sion. If the rate of fare asked for
by the petitioners were granted and
Street
railway companies the effect on the
sssum ahs c ts
OF trafhc AZ has obtained during the
past seven months and the same
opsrai1E expenses would be to in
per cent TO 1915 per cent.
In the argument in this case by
representatives of citizens associa-
tons the commission was urged to
authorize q continuance Of the pres-
emit rate of fare for the washington
Railway and Electric Company and
its subsidiary COMPANIES. viz. 8 cents
cash. with four tokens for 80 cents
and FIX the rate Of fare on the lines
OF the Capital Traction Company at {
cents cash OF four tokens for 25
cents: The commission was also
urged to abolish the charge Of 3 cents
for intercompany transfers In de-
ton to the first Of these two susses-
tions the commission 10 Of the opinion
that it Is inadvisable to depart from
its position in this matter, to viii CHI
1t has referred at length in previous
opinions The commission firmly be-
!ieves that 1t is necessary in the pub
lie interest to maintain a uni form
rate of fare on all street raiiwav
lines within the District OF Columbia
to prevent disarrangement or fhe
service that would be disastrous to
the companies and the public alike.
Order No. 3d.
'In its order No. 373 the commits
sion referred to the legislative meas.
ures pending before Congress which
seek to equalize the disparity in net
earning power of the petitioners. and
that Of the competing company (the
Capital Traction Company by a re-
vision Of the method Of taxation on
action on these measures has yet
been taken by the Congress. The
commission is of the opinion that no
appreciable relief from present con-
ditions whereby one system receives
"IIkICI 1OR" IN LIAA