Evening star., 1923-07-31
C|T|zENSASK CUT
IN Dc BuSfARES
Cite Alleged Earning of 20.2
Per Cent in Playing De-
mand for 10-Cent Rate.

a substantial reduction" in the
busses Of the Washington Rapid Tran
sit Company was urged by the Fed
Grafton of Citizens Associations in a
petition filed with the Public Utilities
Commission today by William Nick.
Clayton, chairman of its public utili-
ties committee. The federation's ac-
tion is preliminary to the vigorous
attack 1t will make against the bus
company's 10-cent fare petition when
1t comes up for consideration at
public session of the commission
Thursday.
The petition declares that the pres.
ent Scent bus fare rs unjust, unfair
under the public utilities act and con-
trary to the rules. orders, decisions
and the practice of the commission.
1t asserts the company Is earning an
annual rate of return of 3S.S per cent,
and its traffic is growing by leaps and
bounds
The net corporate income of the
company for the six months from
January to June 80, the petition
stipulated. amounted to s16.216.63.
company set UP for depreciation from
earnings, neither authorized nor ap-
proved by the commission" S26,-
049.74. The company also deducted
from earnings for insurance for the
charged in the petition.
The insurance item, gregating
$17,500 a year, has never been author
lied or approved by the commission"
the petition charged, but, alike with
the depreciation item, has been ar
bitrarily set up by the said company,
ex parte.
Call Amounts Excessive.
Both the depreciation and insur-
ance charges are excessive in amount,
and to the extent that they are ex-
cessive they are unjust and unfair
charges against the bus rider.
THE company puts the book value
of it's plant and equipment as of
January /, 1923. at s16O.1o4,92. Its
property has never been valued or
appraised by the commission, and
with book value when set up by the
party in interest as against real
value when ascertained by an in
dependent agency.
so that the basis used here. upon
which to figure the rate of return
earned by the company for the past
six months, Is the company's own
value of its property and assets This
book value Is $160,104.92. The net
corporate income of the company for
2I6.s3.
This shows rate of return en-
joyed by the company for the first
half of 1923 of .101 per cent.
Say Earnings 2O.c Per Cent.
hnr
Washington Rapid Transit Company
is now earning an annual rate of
return upon which it says its prop
erty is worth of 20.2 per cent, when
the depreciation fund accumulating
over the same period of time. viz,
6,049.74, is deducted from the base
as the commission in analogous cases
has said should be done. leaving
base Of return for a half year be,
rate of return of 1873 per cent.
I'm this forecaasted rate of return
for the whole of 1923 no credit is
given for increase in passengers.
s.5s5.7os; ' in the h' six % menths Of sisa 1928.
2.156.943; or, should only the present
ratio be maintained. the company
will carry In 1923 4.31s.886. or an
centage for the year of % per cent
This heavy travel increase now.
twinned with an increase of fare ask
ed by the company. leaves us a riddle
that must be passed on to the sphinx
for solution.
THE major traction Companies OF
the District insist to the commission
that they must maintaMstheir present
high rate, because their passenger
lists are steadily decreasing.
The Washington Rapid Transit
Company asks the commission to
award 1T a 25 per cent increase in fare.
with it's traffic growing by leaps and
bounds.
"In conclusion, your petitioner says
that the present rate of fare of
cents on the lines of the Washington
Rapid. Transit Company Is not the
fair, Just and non-discriminatory rate
of fare contemplated and allowed un-
der the statute made and provided.
THE premises considered, your Pc
respectfully prays the honor
able commission for such a substan-
tial reduction in the present rate Of
fare that will bring 1t within the pur-
view of the public utilities act, and in
accord with the rulings and orders
and decisions of the honorable COM
mission heretofore made"