Evening star. [volume] (Washington, D.C.) 1854-1972, 1922-10-16
CAPITAL TRACTION
OPPOSES FARE CUT
AS UNJUST|F|AB[E
Objects to Providing Trans
p0rtation at Smaller Rate
Than Other Company.
CITIZENS CITE FIGURES
TO COMPEL REDUCTION
Attorney Uses Company's State
ment to Show Return on
Valuation.

The Capital Traction Company filed
objection with the Public Utilities
Commission today against a reduction
in fare on its lines at this time.
When the commission opened the
public hearing at the District Build
ing this morning on the application OF
the Federation of Citizens Associa-
tions for a cut in the Capital Trac-
tion rate only that company made
known its position.
The company's answer. filed by
George E. Hamilton. president. de-
clared that "a reduction in the rate
ington. under present conditions.
would be useless and unjustifiable
William NICK. Clayton, counsel for
the citizens federation, established
record for brevity in presenting the
evidence in support of reduction.
Quotes Company's Earnings.
He merely read into the record
what he said was the company's re-
turn on fair value for each of the
seven months since the present fare
has been in effect. His figures fol-
low:
Return on fair value for March, s.61
per cent: April 11.32; May, 11.46;
June, $50: July. 7.s1: August. 6.s2.
and September, 7.S9.
These figures. Mr.. Clayton testified.
the period Of 9.28 per cent The citi-
zens' representative then submitted
exhibits as to rates of interest in the
District at this time, after which he
rested the federation's case.
John II: Hanna, vice president Of the
Capital Traction Company. was the
next witness. He began by reading
into the record Mr.. Hamilton's answer
20 the request for a reduction.
Mr.. Hamilton's answer stated that
March to September, inclusive. the
company's earnings available for re-
turn on fair value amounted to $s4T,-
s1o.69. which is . per cent on the COM
missions valuation.
Mr.. Hanna gave the company's re-
turn Tor July. August and September
as 7.5. SIS and 10 per cent. respective
ly. He said there were slight varia-
tfons In his figures and those given
by Mr.. Clayton. probably due to a Diff
ference in the estimate OF fair value
used.
The vice president OF the company
then gave the fair value of the sys-
tenn as of September 80 at $l6.1ss.-
377.75
Mr. Hamflton's Statement.
Mr.. Hamilton's statement to the
commission. in part. follows:
THE Capital Traction Company
wishes to repeat at the outset it's
of similar nature. that it does not
expect nor does 1T desire to receive
more than a fair return on its prop
erty devoted to the public use.
'The petition Of the Federated Cit
izens' Association requesting reduc:
Traction Company makes no refer
ence to other street railway lines op-
Grating in the District Of Columbia.
and we presume that the commission
in mind the question OF reducing fare
on the lines of the Capital Traction
Company. At many previous hearings
this company has stated its reasons
for objecting to having different rates
of fare on it's lines from those apply.
ing on other lines in the District OF
Columbia.
Wants Uniform Fares.
Briefly, these reasons have been:
First. We submit that it is dis
elimination to require us to furnish
is paid for equivalent service FUR
nished by other companies.
second. a practical objection to two
different rates of fare is that the lines
Of the Capital Traction Company and
those of the Washington Railway
and competitive throughout the Dis
trict, and a differential in the rate OF
fare on the lines OF the two COM
panies would unQuestionably result
in q diversion OF a considerable por-
tion of the traffic now handled by
A. D..f nd arf fV~s
Company to the lines of the Capital
Traction Company. We are unable
to forecast the amount of trafic
which would be thus diverted, but II
would be sufficient to overcrowd our
cars during the rush hours and make
lines at least. so great that II could
not be satisfactorily handled. 1t
seems manifestly unwise not to make
full use of all available transporta-
ton facilities during the rush hours.
and a differential in the fare would
undoubtedly prevent this result being
attained. 1t is our opinion that IL
different rates of fare were to be
charged it would probably result in
decreasing the revenues of the WASH
ington Railway and Electric Com
Of the Capital Traction Company"
Although the Washington Railway
and Electric Company is not a formal
party to the proceedings. the commission
decided to hear testimony from it's
officials.
william F. Ham. president Of the
Washington Railway and Electric, fol-
lowed Hanna on the stand and testified
that for the six months ended Septem-
ber his system earned only 4.27 per
cent on its valuation. as compared with
6.19 per cent for the same period Of 1921.
Mr.. Ham gave the Capital Traction
return for the six months from March
to September as 9.27 per cent. He then
testified that the combined rate or re-
turn for the two companies. II consid-
cred as one. would be 6.65 per. cent for
the six months period.
w. r.. 4 e. Rate Of Return.
Thus, he said. the people OF Wash
at. less than z per cent on the value
in1ton are getting street car service
Of the two companies He said this
Is a lower return than is generally
considered reasonable for street rail-
Here is the w. r. and E. rate Of re-
turn by months from March to August
inclusive: March. 6.17; April. ASS;
August. 3.22. This gives the average
for the six months Of AT per cent.
Mr. Ham gave the fair value of the
w. R and E. system rs OF September
1 at $1as92.66s.61.
Charles T. Clayton Of the Columbis
Heights Association. assisted William
Mex Clayton in presenting the fed
eration's case and cross-examfned MT