Evening star., 1922-11-11
.C|T|zENSATTACK
RIGHT TTOCONT|NUE
|. PRESENT CAR FARE
CIayton's Brief Contends
Equal Rate for Capital Trac-
ton Will Be Illegal.
CHARGES DISCRIMINATION
IS VIOLATION OF LAW
Capital Lines Declared in Best
Financial Condition of Similar
Property in U. s.

To continue the present rate of fare
on the lines of the Capital Traction
Company would constitute discrimi-
nation, in violation of the utilities
law. William Nick. Clayton. repre-
Associations, contended In a brief
with the commission today.
.he discrimination, Mr.. Clayton
believes, would be the granting of
what he calls an excessive return to
the Capital Traction Company in order
to protect the Washington Railway
and Electric Company from competi-
tion.
Second Brief Filed.
The right of the commission to
both companies despite the fact that
such a fare gives one company a
greater return than the other also is
attacked in a similar brief filed by
Charles T Clayton Of the Columbia
Heights Citizens Association.
The briefs are in support Of the
petition of the Federation of Citi-
zens' Associations for a reduction in
fare on the CapitaE Traction cars on
the strength of testimony that the
present fare is yielding that system
a return OF per cent on its valua-
tion.
Warning on Discrimination.
'One of the strongest command
ments repeated over and over again
in various paragraphs of the public
utilities law" said Mr.. NICK. Clay
ton, lis that warning the commission
against discrimination in anv form or
phase, Of every degree and kind.
Yet. to compel 60.000.oo0 car riders on
the Capital Traction lines to pay more
than the law says is just and rea-
sonable In order that another 60.000.-
900 riders Of the Washington Railway
and Electric may pay less Is such an
ocean Of discrimination that no spot
Of land appears on the face Of the
waters."
Challenges CommissiOn's Right.
William NICK. Clayton challenges the
right Of the commission to consider
the affairs of the Washington Rail-
way and Electric. since the federation
applied for q reduction only to the
Capital Traction Company.
After declaring that the Capital
Traction Company today finds itself
in a financial condition unequaled by
any street railway in the United
States, Mr.. Clayton sums up that con-
dition as follows:
1T is in testimony that the COM
pany could finance any reasonable ex-
tension ordered without borrowing.
Its tracks and roadbed could not be
bettered: its equipment Of cars need
no additions: 1t Is paying its employees
wartime wages: it Is paying Z per
cent dividends on its stock and has
on hand now enough cash from sur
plus profits to guarantee such divi-
dends for two years in advance with
out going at all into its current
profits.
100000 Out of Surplus.
ut has paid from surplus profits
over 100000 carried on it's books for
years as a loss on the scrapping of
trailer cars; it has as one of its assets
over 100000 worth Of its bonds now
In the treasury of the company: it
contemplates at this time no further
ent issues are above par on the mar
ket: it Is financing its Virginia ad-
venture from surplus profits; its de-
probation fund has appreciated be-
yond reasonable needs or require
ments: 1t is able to finance and carry
its own insurance risks; to sum up
this portion of our inquiry:
Can any element of weakness or
deficiency be found in the financial
operating or business structure of the
Capital Traction Company to plead
for a continuance of the present abb
normal high rate of return or advo-
cate the unjust and unreasonable rate
Of fare producing that return?
Mr.. NICK. Clayton sets forth that
when the utilities act was passed by
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