Evening star., 1921-06-17
'W.R.&E.PR0TESTS
T CUT IN CAR FARE
Against Public Utilities Con-
sideration of Issue Before
. September /.


The Washington Railway and Elec-
tric Company today protested against
the announced intention of the Pub
lie Utilities Commission to consider
a reduction in car fare before Sep
tember 1, when the existing fare order
expires.
The commission yesterday evening
gave the companies notice that on
June 2S it would fix the date for
rate hearing. Ten working days must
elapse between the nxinG OF the date
and the opening of the hearing. Wnich
means that the hearing will be heid
about July II.
william F. Ham, president of the w.
r. and E., made public this morn
ing a letter he has sent to the COM
mission, questioning its right 10
change the rate during July or Au-
gust, when the existing rate order
was definitely fixed until September.
Congress Action Essential.
Figures worked out both by the
commission and the Washington Rail-
way and Electric indicate that not
much of a reduction in the existing
rate of fare can be made unless Con-
gress enacts one of the bills now
pending to change the form of rail-
from paying crossing policemen and
paving the track spaces.
The commission estimates that with
a straight Scent fare. or five tokens
for 35 cents. instead OF four Tor 80
cents. the rate of return on the COM
bined valuations of the Washington
Railway and Electric and the Capital
Traction companies would be 6.04 per
cent. IT has been construed by the
commission in the past that the street
railways are entitled to at least per
cent. If this change is made it would
amount to a cut OF only u cent in the
token rate.
According to Mr.. Ham. a straight =
cent fare. which also has been sug-
gested, would give a return on the
combined value of the two companies
Of SIG per cent.
Commission's Letter.
The commission. in notifying the
companies to prepare for a rate hear
Ing said:
I'm accordance with the provisions
of paragraphs 80 and 80 of section
8 of the act of Congress approved
March 4. 1913. making appropriations
to provide for the expenses OF the
government Of the District of Column
bia for the fiscal year ended June 80.
1914. and for other purposes. notice
is hereby given that the Public IT'LL
tiles Commission of the District OF
Columbia has made an investigation
OF the effect on the earnings OF the
several street railway corporations in
the District Of Columbia of the pres
ent rates of fare covering the opera
tions of the companies for a full year
from May I, 1920. on which dates the
present rates became effective. This
investigation shows that the compa-
nies. considered as whole, have
earned a return on the combined fair
value of their properties. as ascer-
tanned by the commission as of De-
cember 81. 1920. in excess of the
amount which the commission con-
siders reasonable.
Further investigation by the COM
mission of the earnings of the COM
panies for the first four months of
the calendar year 1921 shows that the
return for that period is at a still
higher rate than obtained during the
year beginning May I. 1920.
I'm view OF these increased earnings
and of the decrease in the cost Of
materials and the price of labor that
have obtained since the present rates
Of fare became effective. the commits:
of the rates should be considered in
advance Of the expiration of the
period for which they were esta blish-
ed in commissions order No. AIT, is
sued March %. 1921.
I'm accordance with the foregoing
provisions of law, the Public Utilities
Commission will on Tuesday. June
28. 1921. proceed to set a time and
place for a formal public hearing
upon the question of the reasonable
ness Of the present rates Of fare on
the lines of the several street rail-
way companies operating in the Dis
trict of Columbia.
AT this hearing consideration will
be given to the petition of the FEEDER
alton of Citizens Associ ations of the
District of Columbia. filed with this
commission on May 25. 1921. claiming
that the rates of fare on the lines Of
the Capital Traction Company are
unreasonable and unjustly discrimi-
natory and praying for reduction
thereof: 4 copy Of this petition is
transmitted herewith"
Mr.. Hams Reply.
In his letter to the commission. made
public today. Mr.. Ham states that since
the last hearing no material changes in
change at this time in the rate of fare
During the year ended May 81, 1921,
the total number of revenue passengers
carried by the Capital Traction and the
Washington Railway and Electric COM
panies within the District fell off nearly
fourteen million as compared with the
previous year, decrease of more than
per cent. Traffic is still decreasing,
and We can reasonably expect such de-
crease to continue. especially in view of
the reduction in government employees
scheduled to take place on or before the
first of next month.
"AS to the question Of separate
fares on the two railway systems. the
commission has constantly maintain
ed the policy of a uniform rate of fare
on all street railway lines within the
District Of Columbia. It,is needless
for US to refer to this. but we feel
that possibly the attached memo
randum may be helpful to the COM
mission. showing brief excerpts re-
lating to this matter from the orders
of the commission dated October 26.
1918: May 90. 1919: October Is, 1919
April Is. 1920: December 80. 1920, and
March 2S. 1921.
Further. the effect of separate
fares on the street railway systems
would be to create zone system and
impose higher fares on the suburban
lines. the system advocated by this
company as measure of relief
against which there was unanimity
of opposition on the part of the citi-
Gems associations. who demanded that
the same rate of fare be maintained
on all railways throughout the Dis
trict."