The Washington times., 1921-03-17
WOULD
CRIPPLE WIRE.
Company Admits Four Tokens
for Is Cents Provides
Over 6 Per Cent.
SEPARATE TARIFFS OPPOSED
Petitionins Officials Claim Pres
ent Charges Must Be Con-
tinued Again. ..
SEPARATE TARIFFS OPPOSED

The Capital Traction Company
can reduce street car fares to z cents.
four tokens for 25 cents and sUll
earn q return of more than 6 per
cent Of the company's fair value.
Such reduction would make q 10
cent fare necessary for the Washing
ton Railway and Electric Company,
as 1t is estimated the lower Capital
Traction fare would decrease the W.
n. & E. patronage.
These were the major develop
ments outside Of an announcement By
the Capital Traction that it favored
the zone system at this time, Of the
hearing yesterday on the application
of the w. r. 4 E. for continuation
Of present fares after March 81.
OPPosn TWO FAREs.
Both companies Oppose the estaS-
lished Of two rates of fare in WASH
EinGton. J. III. Hanna. vice president
of The c. r. Co., declares q voluntary
merger. permitted by law, is the only
real solution to the railway situation.
He urges the measured service" sys.
tenn as an alternative
MI, Hanna. after presenting to the
iCommission figures showing his com
pany had earned Q return Of more
than 10 per cent on its fair value
last year, declared he did not believe
the Capital Traction Company last
year, or the year previous earned
an excessive amount Of money.
Mr.. Hanna further declared the
company would earn this year, IL the
present rates continued. nearly IL per
cent. He said IL the fare returned to
nve cents. as provided in the existing
order OF the commission, the company
would earn about two and one-haif
rer cent
Throughout the hearing Mr.. Hanna
again and again mentioned measured
sersice." This system of fare eoilec-
ton is vigorously opposed by citizens
OF Washington and any intimatiou
that the commission is considering.
Measured service" will no doubt re.
suit In a storm of protests.
service, IL possible, should be paid
for In proportion to service rende red.-
said Mr.. Hanna. This means soms
form of measured service"
hanna declared a separate fare
would tremendously increase the
number of passengers on his line at
a time the company was least fit to
handle them.
- VIC ~ouiu not De able to care for
all the people wanting to ride on our
rare would be most satisfactory. not
only for the company. but for the
public as we'll"
HAS LARGE RESERVE.
The Capital Traction Company Of
ncials stated yesterday 1t had a re-
serve of 1902 ,30401, Of which x7OI
w N nA
deposited in banks. The company ad.
mitted surplus last year of S6O6.-
or and a surplus in 1919 Of S393. 4o2.
Mr.. Hanna testified that his com
pany had been spending their in
creased earnings in writing off the
books property no longer useful. He
declared that st0s,00O of last years
surplus was used in this way. He. also
declared that the company was not
distributing Its excess earnings, but
instead was making repairs to pres
ent property, buving additions and
writing off property not used or use
full.
President Ham, of the w. r. and r..
declared that since September, 1919
as a result Of the Public Utilities
Commissions failure to allow that
company rate sufficient to permit at
least per cent return. the company
had earned 1880 900 less than q 6
per cent return.
He declared further that the COM
mission has been slow in realizing the
necessity OF increased rates suffici-
ent to meet increased expenses. He
said the company had been brought
at one time during this period to ths
verge Of bankruptcy.
President Ham said the commission
was fundamentally and morally
wrong in limiting the company to
8 per cent return. He also criticised
the commission for allowing relief for
such short periods, declaring this pre-
vented the company from mapping
out plans for the year.
OPPOSE nus LINES.
The railway president also spoke Of
the competition the company had
been subjected to as a result OF the
operation on sixteenth street OF the
buses OF the Washington Rapid Tran
sit Company. The bus line caused con-
siderable discussion, and Mr.. Hanna,
when asked for his opinion, declared
he did not think the line would pay.
He said he long ago would have
recommended that the Capital Traction
Company start such line II he
thought II was a paying proposition.
William Mex. Clayton, represent