The Washington herald., 1922-10-17
CITIzENSURCE
CUT IN CAPITAL
TRACTION FARES
Federation Agent Points
To Company's 9 Per
Cent Return.
INSISTS TRANSFER
CHARGES ILLEGAL
Railway Head Pleads Two
Rates Would Injure
w. r. E. Co.

Declaring thai the Capital Traction
Company had been earning at the rate
Of more than . per cent by the admis-
sion of its officers since the Public
Utilities Commission established the
present street car fares seven months
ago. William Nick. Clayton. represent
ing the Federation of Citizens Asso-
Citations, yesterday called on the
commission to reduce this company's
fares.
when the commission was asked
to have the Capital Traction Com
pany extend it's conduit system along
Connecticut avenue several months
ago it was pointed out that such an
expense would postpone reduction in
street car fares" said Clayton. He
stated that the citizens were either
entitled to Improvements or reduced
of the company.
Capital Fears w. r.. 4. Loss.
The reply OF the Capital Traction
Company to the petition was declared
by District officials to be an unusual
one In that 1t set forth that under a
reduced fare on the Capital Traction
Company. assuming the fare to re-
main the same on the Washington
Railway and Electric Company. the
rival company's revenues would de-
creaes and the patronage on its own
lines would increase.
According to George f. Hamilton.
president OF the Capital Traction Com
pany. this company does not expect
nor does II desire to receive more than
fair return" He voiced objection
to- different fares on the two lines on
the grounds that 1t was discrimina-
tory to require the Capital Traction
Company Ito furnish service at a less
rate than that which is paid for equiv
alent service by other companies"
"A differential in the rate of fare
on the lines OF the two companies
would unQuestionably result In d.
version Of a considerable portion or
the traffic now handled by the wash
ington Railway and Electric Com
pany to the lines of the Capital
Traction Company" he said. This
he declared would overcrowd the
latter company's cars during rush
hours and would probably result
in decreasing the revenues Of the
Washington Railway and Electric
Company to a greater extent than
those of the Capital Traction Com
pany."
Charges shifting Of Tax.
william Nick. Clayton stated thas
the Capital Traction Company was
subtracting the Federal income tax
paid by the company from the earn
ings and thus putting the charge
directly on the shoulders OF the car
rider.
The earnings with the tax prop
erly figured would be more than II
per cent" he declared. Clayton
further intimated that this was the
first group of Commissioners that
thus permitted the company to pass
the income tax on to the public.
The Commission has adopted a
policy of uniform fares and it hasn't
worked out" said Clayton. A state
ment that the Commission was act
ing on the desire to force a merger.
but was actually forcing the COM
panies further apart brought quick
reply from Col. Charles Keller.
chairman of the Commission.
Keller Denies Merger Block.
THE effort OF the Commission to
force a merger was contained in a
proposal to put a surtax on the ex-
cess earnings OF the Capital Traction
said Keller In pointing
out that the merger did not enter
into the question of determining
fares
Clayton argued for a reduction
in the cash fares even below the
reduction in the charge for tokens.
and when asserting that he was
speaking for the cash fare riders
drew the question from Keller as
to how he came to represent this
group.
The cash fare riders are men,
bers of the submerged class who