The Washington herald., 1920-04-16
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granted by the Capital Traction
Company to its employees. This
indicates that the Washington
Railway and Electric Company
will fall short OF earning a per
cent return on the fair value of
it's property by s91S,O00.
Experts Zone Report.
At the request of the commits
sion, the Washington Railway
and Electric Company presented
information through it's expert,
Prof. Albert S. Richey. Of the ap-
pIication of a zone system to its
lines. Decided opposition was
manifested by individual citizens
and by representatives of various
civic bodies to tho adoption OF
any form Of measured service
system, and while the eommissioa
believes that IL 10 right and just
In principle that the users OF .
public service should pay for
that service as far ms possible in
proportion to the cost of furnish-
ing IL to them. IL Ii OF the opinion
that under present conditions Il is
inadvisabIe to adopt . sone sys-
TEN OF street car fares or amy
other form OF measured street
railway service.
The company in its petition asks
that the additional revenue be
provided in part by the imposi-
ton OF a charge of cents for
intracompany transfers. A charge
for intracompany transfers in
wolves many inequities and makes
il almost impossible to effect op-
Grating economies through the
rerouting of cars from time to
time as may be necessary to meet
changing traffic conditions. While
a small charge for transfers does
not tend to eliminate the abuses
which exist in any system of free
transfers, the objections to the
charge are believed to outweigh
the advantages it's adoption is
therefore, believed to be inadvis-
able.
The company's estimates as
to the increased revenues that
will result from an increase
in the rate of fare are based
on a traffic load of S0.0O0,00
pay passengers annually. II
the rate of fare were increas-
ed to seven cents cash with no
tickets, the company esti-
mates a traffic loss of 81. per
cent; with the fare Increased
to s cents cash, with tickets
at -. cents each, the traffic
loss is estimated at 6 per
cent; with the fare increased
to cents cash, with no tick
cts. the traffic loss is esti-
mated at S per, cent. Under
these assumptions, the reve-
nues would be Increased by
100000, S617,o00 and ss25.0oo.
respectively. The largest of
these amounts is less than the
amount which the company
estimates il will require TO en-
able the company to earn
per cent upon the fair value
of its property.
Expects Congregational Relief.
Tho commission is Of the opin-
ion that only a part of the RELIEF
asked for should be secured by an
increase in rates of fare, and that
in fixing rate the commission
should assume that. Congress viii
also grant relief through n modi-
fled form of taxation.
A ticket fare of IA cents with
a cash fare of cents yll yield
an additional annual revenue or
approximately s625.o0o. If to
this is added the relief which
would follow the enactment of
the proposed Legislation. the
amount of the cumpany's reve-
nues would he sufficient to yield
a per cent return on the fair
value of its property as ascer-
tained by this commission.
To give this relief to the WASH
ington Railway and Electric Com
pany and it's subsidiaries with
out at the same time establish
ing the same increased rates on
the lines OF it's competitor. the
Capital Traction Company. would
mean that SO much trnfIlc would
be dcfiected from the Washington
Railway nnd Electric System to
the Capital Traction Company
thot the revenues Of the former
would be decreased probably to
point below actual operating
expense, thus defeating the pur-
pose OF the grant Of relief, and
nj the same time destreyfng the
service stsndard Of the Capital
Traction Company by an over
whcining trnalc load which II
could not pessibiy accommodate. /
In other words, n Is necessary
IN the public interest to maintain