Evening star. [volume] (Washington, D.C.) 1854-1972, 1923-07-02
Utilities Commission Told 8.
Cent Rate Is inadequate to
Give Reasonable Return.
BETTER, FASTER SERVICE
ASSURED BY OFFICERS
Statement Says Concern Has Been
Operated at $14, 900 Loss in
Last Two Years.

Application for ten-cent fare on all
its bus lines was filed with the Public
Utilities Commission this afternoon by
| the Washington Rapid Transit Com
pany. The present fare is cents.
| Through Attorney Conrad II. Syme.
| the company tells the commission it's
| present rate of fare is entirely made
quate to enable it to render the kind
| OF service it wants to give Washing
ton
! The petition reveals the fact that the
transit company, which is yet in it's
infancy. VIII contend for a return of s
per cent on its valuation
; IS the desire of the company"
! reads the petition, Ito place itself In
nnanclal position whore it can give
inc KIND and character of service
! %nlch Washington deserves by sub
stituting. from time to time. the most
improved type Of motors and motor
ousses and increasing in every way
| possible the efficiency Of its service.
! Must HIVE Increase.
+, This is impossible unless the re-
: turn on the capital invested from
time 10 time Is sufficient TO meet the
[ proper and necessary overhead and
operating expenses of the COMPANY.
me creation of sufficient depreci-
aIon reserve, the amortization of it's
! lesi'iinate expenses of organization
ana financing, the creation OF a fund
Tor working capital and payment OF
| investment" o
| The company is now operating
uosses from 9Th street and Penn3yi-
naula avenue northwest and fr,m
fotomac Park to LIST and Rhode Is
| iano avenue northeast to Grant cir
I cie ano TO 18th and Buchanan streets.
continuing the explanation of the
! tition states:
The present rate OF fare authoris-
eo by the commission is entirely In
aoequate FOR the above purposes. The
/ o 20 believes that an ircrea4e
or It's present rate of fare tn n
cents per passenger would enatIs il
20 accomplish the purposes above 81
! !ortn ana, therefore prays that .uch
increase may be authorized Inv the
&C mmission. ny VIC
| y oiainss Pics Jas,fs I'D
In connection. with this rsoue.,
snat me fare be increased for the
! aLoresaid purposes, the attention "a
e. com omission is directed to the
nf ,n ms, In al pioneer enterprises
! rlsk OF loss is attendant upon the IN.
! ccplion OF the enterprise, a hirhar "a
turn than that allowed a ions "a
aieiy estsbltshed public utility is mot
ANY Iustined but Is nee essary in or
! enterprise may be enlisted. and CT.
perience has demon strated that this
nigher rate is ultimately as much ~
.ne interest or the public as Of the
| 1T has been the experlence ., ..A
! company that great deal OF time
is lost in the motorman being cow
pelied to make change Were This
s en the Roadway between the
| the attention of the motormsn he
given more directly to the operation
or the ous and the convenience OF Tho
passengers greatly conserved. n 10
quite impossible to stress too strong.
/ ~ the delay occasioned by the necas-
slty Of the motorrnan making cb.nsa
| usually for each passenger and OF tn
addition to the quality of service
winch would ensue If this could be
Prom observation and the mast ex-
| perience of the company it Is he
iieVed that the patrons of the com
p nnrs vii not object to the requested
! terment of the service, both as 70
equipment and Roadway, which 1t will
enable the company to make
! the premises considered your
! tiles Commission will consider iris
petition and. after such hearing and
| investigation as it deems necessary
may grant unto the Washington
IA Rap pr, Transit Company the authority
! senger within the District Of CoIum-
sla. with transfer privileges as at
The application sets forth that the
+, administrative officers Of the com
pany have received practically no
; salary since operations were begun.
The company estimates IT should be
| allowed a working capital fund Of
ciai condition of the company for
1921. 1922 and part of 1928 as follows.
| On the 31st of December, 1921, it's
| total investment, exclusive of orEa1i-
cation expenses. was s163.140.43 Its
amounted to s116,2s722, while its ex-
! penses amounted to s12I,311.45, show
| ing a net loss of $6,024.24
| ION the 31st of December, 1922. it's
| total investment amounted to $685.
! 1854. exclusive OF organization OK
penses. For this year the gross earn
! showing a net profit Of s5,ss4.so'
! For the months of January, Febru-
airy, March, April and May, 1928, its
total net profit was $11.92634. Dur
! ing these two years and five months
its average invested capital amounted
! to $4,000. in round numbers, ex-
elusive of organization expenses, upon
which the company should have been
| permitted to earn at least s per cent,
o66. instead of which it has been
| operated at net profit of only sI2.-
737, leaving deficit on a fair return
at per cent of $14.321 for these two
years and five months"