The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1922-03-01
Hope OF SEPARATE.
RATES OF TROLLEY
FARES ABANDONED
Merger Offers Only Hope
Of General Reduction,
Citizens Believe.

Lower street car fares through
eparste rates for the two COM
Panies appears now a fruitless
hspe. leading citizens believe,
throush announcement OF the pol
cy of the present utilities commits
sion In its decision cutting fares
% Monday.
The announcement that "in as
Fqming and maintaining this policy
pr uniform rates the commission is
tskink precisely the same attitude
regarding the street railways OF
this city as Is enjoined by Congress
upon the Interstate Commerce Com
mission in its dealings with inter-
statercarriers. for which. regardless
Of Earnings. valuations and CAPT.
talfz9fion. equal rates are pre-
scribsd for carrying freight and
passengers between the same ter
|uinf." spells doom to pleas for
separate rates. it is assumed.
Merger Only Hope.
General reductions in rates is now
possible, in the announced opinion
Of the present commission, only
Through q merger of the two lines.
The commission has already re-
boUed to Congress its unsuccessful
Efforts to formulate a plan for a
merger OF the two properties. This
report followed a series of confer
|ences with street car leaders last
Fpring-
In spite Of the announced policy
bt saniform- rates for the two COM
|panies, 1t was indicated yesterday
by William Nick. Clayton, chair
blan of the public utilities commit
bee OF the Federation OF Citizens
that the fight to Sc
lure separate rates of fare for the
Two companies might be taken to
eourt.
Cites Traction Heads View.
The commission further protects
Ftself in assuming that there is no
present chance of a merger of the
two companies and consequent re-
|duction in farCes with announce
|ment that at the recent hearings
|on rates the president of the Capt.
|tal Traction Company. controlling
company in the dual combination.
declared that conditions likely to
lead to a merger are no different
now than they were following the
conferences between the commits
sion and the companies a year ago
and it is very doubtful IL any ma
|terial reduction in fare would re-
suit from a merger of the COM
panies'
The Utilities Commission, now
headed by Engineer Commissioner
Keller. bases its conclusions as to
a uniform rate also on the text
laid down in this matter on Oc-
tober Is. 1919. The commission at
That time decided relative TO sep
ate rates that:
Text Of Former Decision.
with practically every line of the
Washington Railway and Electric
Company within the city proper
paralleled by q line Of the Capital
Traction Company, the application
of discriminating rates to the two
'crmvsnIAs would. in the opinion or
the Commission. result in such q
disarranEement of the arteries of
city transportation as to make II
utterly impossible for the Capital
Traction Company to render ade-
quate service. while at the same
time. the reduction in the number
OF passengers on the Washington
Railway and Electric Company sys-
TEN would. to large extent. onset
the''effect on gross revenues of the
Increased fares. The two systems
are so related that II the present
character of service is to be main
taiRsd. much less improved. It -
deemed imperative that uniform
rates be maintained on the tw"
systems"
The effect of maintaining 4 uni
form rate Of fare for the two COM
paniss during the past three years.
including the effect for the present
year at the existing rates II this
policy continued. has brought IN
S24T.394I1 net revenue IN excess Of
the ! per cent return on the fair
value Of the two companies These
figures were presented to the Com
mission at the last hearing.
CompsnIes' Relative Earnings.
II was shown that the Capital
Traction Company earned in excess
of per cent return in 1919. s372.-
2sT.s4: in 1920. 1856. O15.62; in 1921.
lzs4, 3Os.IO. and an estimated amount
for 1922 of S517.47956. The total
for the four years above the per
cent return was s2.0IO.071.9s.
II was shown that the Washing
ton Railway and Electric Com
pany's system failed to earn Z
per cent return in 1919 by $780,
443.s7; in 1890 by s4o1.s1s.4S: in
1921 by x12I.7s1.23. and by estimate
for 1927 SI5s553I3