The Washington times., 1922-11-11
ION
DEMANDS
]. RA7ECUT

files Brief in Which He Alleges
Millions In Access Of Lawful
Return Are Taken.
II the Public Utilities Commis-
sion continues the present rate Of
fare on both street railway lines
In Washington it is acting con-
trary to law by permitting the
Capital Traction Company to earn
. rate of return which is unjust,
unreasonable, and discriminatory.
Such was the contention today
Of William NICK. Clayton, repre-
sentative of the Federation Of
Citizens Association, when he
filed with the Commission a brief
outlining the legal aspect of the
fare question.
Asks Separate Treatment.
The brief of Mr.. Clayton supple
ments a recent petition of the fedora
tion for a reduction in fare on the
lines of the traction.
The chief feature of Mr.. Clayton's
argument today Is that the commits
sion must deal with the Traction
company separate and apart from the
Washington Railway and Electric
Company. He further declares that
the commission Is violating the law
In falling to lower fares on the Trac.
ton company.
Mr.. Clayton portrays the Traction
company as a corporation reaping
millions of dollars from the patrons
to which 1t is not entitled to.
1.-THE company has received since
1912" said Mr.. Clayton. COLLECTED
from it's car riders by authority of
the commission. over $3,000,000 In
excess of a per cent rate Of return.
Whether this large sum of money
taken from a class of people least
able to pay Is to be regarded as un-
earned increment or as a subsidy. 1t
Ia now lost to the people, and, as we
contend, without warrant for such
exaction being found in the charge
Of the company or In any statute OF
Congress"
Mr.. Clayton points out that the
commission has the authority to es.
tablish two fares.
The petition says:
1T is the right and duty of the
commission in this case to reduce the
present fare on the lines Of the Capi.
tai Traction Company.
THAT such reductions should be
made without considering in this
case the rate of fare or the rate OF re-
turn to any other street railway COM
pany or system now operating In the
District under the jurisdiction OF the
commission"
The petition points out that the
traction company admits earning
return of more than 8 per cent since
last March and further says, the
federation contends, 1t earns more
than II per cent. 1t says that for
the years 1919-1920.1921 the company
received an average rate Of return OF
1882 per cent.
Is In Excellent Shape.
Mr.. Clayton declares the traction
company finds itself in a financial
condition unequaled by any other
etreet railway operating in the
United States. He points out:
''It is in testimony that the com
pany could finance any reasonable
extension ordered without borrowing.
Its tracks and roadbed could not
be bettered.
Its equipment Of cars need no
additions.
1T is paying it's employees war
time wages.
''It is paying per cent dividend
on It's stocks and has on hand now
enough cash from surplus profits to
guarantee such dividends for two
years in advance without going at
all into its current profits.
It has paid from surplus profits
over 100000 carried on it's books
for years as loss on the scrap.
ping of trailer cars.
II has as one of Its assets over
100000 worth of bonds now In
the treasury Of the company.
1t Is financing Its Virginia ven.
ture from surplus revenues.
Mr.. Clayton says after pointing
out these conditions:
"Can any element Of weakness or
deficiency be found In the financial,
operating or business structure OF
this company to plea for a con.
tinuance of the present abnormal
high rate of return or advocated
the unjust and unreasonable rate
OF fare producing that return.
Charles T. Clayton, also repre-
scented the federation, filed brief
yesterday declaring the commission