Evening star., 1924-04-07
.5CENT-FARE VOTE
IN SENATE PLANNED
Mcclellan Gives Notice of In
tention to Offer Amend
ment to D. c. Bill.

Senator McKellar of Tennessee,
author of the five-cent street car fare
bill for the District, upon which hear
ings have been held before the Senate
District committee for several weeks,
gave notice at the hearing today that
he intended to offer a five-cent car
fare amendment to the District ap
preparation when that measure is
presented to the Senate.
Senator Mckeilar's statement was
made when he was seeking to obtain
from J. II. Hanna, vice president Of
the Capital Traction Company, infor-
nation as to when he would be
through with his testimony.
II want to make my position clear"
said Senator McKeliar. 1T is get
ting close to the time when the Dis
trict appropriation bill will be before
the Senate and 1 am going to offer
my amendment to that bill"
May Not BE In Order.
Senator Ball, chairman of the Dis
trict committee, said that of course
Senator Mckellar had right to offer
his amendment to the District ap-
preparation bill, but that the Senate
would have to decide whether his
amendment was in order.
Personally 1 do not think it would
be in order" said Senator Ball.
Mr.. Hanna said that he had only
short summing up to make to his testi-
mony, and that then George E. Hamil-
ton, president of the Capital Traction
Company, was to be heard. Mr.. Hanna
pointed out that he had been on hand
to testify whenever the committee had
asked him to be. and that there had
been no effort TO prolong the hearings.
The Washington Railway and Electric
Company and the Potomac Electric
Power Company officials are still to be
heard after the Capital Traction Com
pany completes its statement.
The next hearing on the Mckellar
bill will be at 10 an next Monday.
Sees Deficit I'm Fare.
Mr. Hanna presented to the com
mittee today a detailed statement
showing the effect of the scent cash
fare with six tickets for 25 cents ON
the Capital Traction Company, had
that rate of fare been in effect dur
ing the year 1923, provided the same
number of passengers had been car
ried 1t was shown there would have
been a net deficit of s5S7,463.42.
Mr.. Hanna then produced figures
to show what would have been the
result Of the scent fare had the
company carried just double the
number of passengers, because of the
lower fare. Even with the 100 per
cent increase in business, he said.
the company would have been able
to earn only 5 per cent on its fair
value, which is less than a fair re-
turn.
Mr.. Hanna asserted that it was alb
surd to think that five-cent fare
would result in doubling the number
of passengers, that the Capital Trac-
tion Company with its present equip
ment could not have carried such an
increase in passengers, and that Is
per cent increase was a liberal esti-
mate. He told the committee that in
Seattle, Wash, last year, where the
street railway is municipality owned
and operated, the fare had been re-
duced from 10 cents to cents and
that it resulted only in 42-10 per
cent increase in the number of pas
sengerS carried
Returned to 10 Cents.
After operating at the five-cent
fare che Seattle street railway in a
few months returned to the ten-cent
fare, he said, and is now charging
that rate. Another statement sub
mitted by Mr.. Hanna showed the op-
Grating revenue and revenue pas
sengers per car mile on the surface
lines in New York and in Brooklyn
as compared to the Capital Traction
Company.
In New York the operating revenue
was sos cents and the passenger rev.
enue 1872 cents; in Brooklyn. 4S.s
cents and 9.53 cents, and the Capital
Traction Company, 4s.S cents and 7.O6
cents.
Mr.. Hanna submitted detailed fig
ures showing the depreciable property
of the Capital Traction Company and
the rates of depreciation allowed
Senator McKellar sarcastica1ly asked
if the Public Utilities Commission had
ever ventured an opinion as TO what
was the proper rate of depreciation
to be allowed. The commission is di-
rected by the public utilities act to
fix such a rate.
Rate of Depreciation.
Mr.. Hanna replied that the commits
sion had fixed rate OF 2672 per cent
as compared to the rate of 3.4S1 now
used by the company. Mr.. Hanna said
that the company had called the atten-
tion of the commission to the great in
crease in business, and that a higher
depreciation percentage should be al
lowed The commission, he said, agreed
to the suggestion.
Mr.. Hanna also insisted that the
higher the depreciation rate allowed, and
the greater the depreciation fund ac-
cumulated, the better it is for the travel
ing public in Washington. Eventually,
he said. the company would have to buy
many new cars to take the place of