The Washington times., 1923-08-02
W|NSPO|NT
ON FIXING
RATES
Commission to Value Property
Later, But Refuses to Ad-
journ at Present

An unsuccessful attempt to pre-
vent the Public Utilities Commits
sion from holding a public hear
ing to consider the application Of
the Washington Rapid Transit
Company's application for a fare
increase from 8 to 10 cents was
made today by William Nick. Clay
ton, representing the Federation
of Citizens Associations.
Scores Partial Victory.
Clayton scored a partial victory,
however He objected to the hear
ing on the ground that the public
utilities act required that before any
rate changes could be made the COM
mission must first value the utilities
property.
Commissioner J. Franklin Bell,
chairman of the commission, answ-
cred Clayton to the effect that the
commission felt that there was no
harm in holding public hearing to
receive information. Colonel Bell
did not however, refer to Clayton's
statement that the commission had
no right to change rates until the
/ transit company had been valued
by the commission.
In ignoring this claim of Clayton,
Commissioner Bell indicated that
| such objection would be taken up
later by the commission itself.
Bitter In DenOuncement.
Vigorously flaying the Washing.
ton Rapid Transit Company, Clay
ton declared that their application
for a 10-cent fare was 1.-The most
audacious petition ever presented to
the Public Utilities Commission OF
the District"
1.-The men who drew up that petit
ton must take members of this com.
mission for fools or apes" Clayton
heatedly asserted. Nero himself,
whose motto was 'audacity, audac
ity,- audacity' would never have
had the nerve to have brought such
a request before the commission"
Clayton declared that a 10-cent
fare would mean a 40 per cent
return on it's investment to the
bus company. He said that the
figures of the Commission would
bear him out in this assertion.
A witness very favorable to the
bus company took the stand and
vigorously declared himself in
favor of the higher bus rates. He
| was Robert H. Phillips. Phillips
also indicated that he would favor
raise in street car fares. In
fact that he was favorable to an
| increase in profits of every utility
| in the District.
When questioned by Clayton he
admitted that he had nc figures
showing what the result of the
10-cent fare would be.
Cites Law.
Clayton offered his objection at
| the opening of the hearing. He
quoted the public utilities law on
! the question of rates and recalled
which held that it was without
authority to change rates until a
valuation had been made.
The objection of Clayton may re-
suit in immediate action on the
! part of the Commission to hold a
| public hearing to value the bus
company's property.
| Another objection raised by Clay
ton was that the Commission had
not authorized the bus company
to set aside depreciation fund
ton for depreciation fund Is
made by the Commission, the bus
company is without right to set
aside such fund.
Syme Presents Case.
Conrad H. Syme, special counsel
Of the Public Utilities Commission
in the Pepco rate case, outlined
the bus companys case He pre-
scented several reasons for the need
of increased fare. They follow:
l. The company is not earning an
s per cent return on it's investment
to which return it is entitled.
2. The company is so poor that
only small salaries are being paid
administrative officers. He pointed
out that for the first six months this
year only $500 in salaries had been
paid to administrative officers,
whereas their work entitled them to
salaries totaling at least $4,000
year.
3. That practically every bus Of
the company is obsolete and should
be replaced with new and more
modern busses.
Six For 50 Cents.
Informally, Syme offered one sue
Restion. That was to the effect that
in addition to a 10-cent fare, it
might be wise for the company to
sell six tickets for so cents.S
Syme stressed the time lost when
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