Evening star., 1922-10-24
HOLDS scent FARE
WILL SHOW PROFIT
William Mex. Clayton Cites
Capital Traction Returns to
Samuel Prescott.

Maintaining that the Capital Trac-
tion Company could now operate on
hVe-cent fare and make money"
William Mex. Clayton. chairman OF
the committee on public utilities
Federation of Citizens Associations,
mas written an open letter to Samuel
prescott, chairman of the joint COM
hhittee of Commercial and Civic Or
CARNATIONS. disagreeing with the lat
Ter over merits of the carfare situa-
ton in the city.
Mr.. Clayton took issue at several
points with letter recently address
eu ny Mr. Prescott to the Public
otiiltles Commission, which is con-
s!uerlng applica ton of the Fedora
tion or Citizens Associations for re-
,ru., Tueo,3n m carfare by the Capital
traction Company.
Has Surplus Equlpment.
noiaihs that the fare should be re-
Capltal Traction has now more cars
''ah h IL operates, all equipped to the
second; It's rails are at least o. ncr
eehl ei'clent Last year it had and
:1,t p9ut IRON its car riders over one
aaiii.oh dollars on rail renewal and
.ai paipi,ient' ~ Where could it now spend
ana where imprOveo With oyer a nil
non dollars surplus and another Nil
non dollars in depreciation fund the
,apitai Traction Company could now
operdte on Il fve-cent fare and make
money " many
heierrlng to Mr.. Prescott's declara-
tlon that the Public Ttilities Com-
iSsion must guarantee a return
upon the investment of each ,,iIity
ana any difference in carfare wonid
immediately operate to DESTROY even
.ne possibility of such return. which
must De guaranteed under all con-
sideratons." Mr.. Clayton branded il
as in serious error of both tbn i.
ana the announced position of the
commission" 'ie
No direction to Com ixsiOn.
lhere is positively no direction 10
! me commission" Mr. Clayton said.
~ hA rate of return and guar
a@ntee @ the same: the sole basis Of fix
S d return must be derived solely
tn on ,i Inc airecnon to the commission
70 'aiue the property of the utility
acIuailE used and useful at the fair
aiue thereof and to fix rates. tolls
ana charges that shall be reasonable,
.TS' 5m ana non on-dIscriminatory. That is
aii and nothing more"
y pronouncement of the comris
SON Itself; Mr.. Clayton said. had de-
cidfed the commission does not
guarantee or attempt to guarantee
any rate OF return. Its sole duty is
20 estah hlish rates which shall be fair
~ 'o'h the utility and the public"
Profits Steadily Increase.
returns to the Capital Traction
oooMHipany, M Mr.. Clayton said had been
20. per cent in 1919, 1850 in 1920
Io,s9 in 1921. and in six months Of
w, l0.l4. For the seven months
SINCE the present rate became effec
i've March to September Inclusive"
sa.a S,a Mr clayton. I'VE claim the evil
sne SHOWS rate Of return ap-
prox1mately II per cent.
Arguments concerning the WASH
ston hallway and Electric Com
pahS Dy Mr. Prescott were said by
Mr; Clayton to be both "immateriaI
ana irrelevant to our issue"
After three years tryout of the
commissions traction-twin policy"
continued Mr.. Clayton, "the strong
support the weak, the Washington
Railway and Electric has grown so
poor that it uses one-man cars and
secondhand buses, and the Capital
Traction Company so rich that it in
vades Virginia and annexes the Old
Dominion as Capital Traction terri
tory"
Quotes From Opinion.
To support his contention that the
Capital Traction had made all improve
ments justified and should now reduce
its fares instead of spending further
funds for construction, MIR. Clayton
quoted from the commissions opinion,
refusing petition to install under
ground service for trolley on Connecticut
avenue.
"A reduction in the present rate of
fare" said the commission, "onO the
street railway lines is of paramount i'm
portance to the travelling public and the
commission is making every effort pos
sible to accomplish this desirable re-
suit. To require the company Capital
ing the underground system at this time
will result in no increase in revenues
and will only tend to lessen the amount
of the possible reduction in fares'