Evening star., 1924-04-15
100000 ABANDON
STREET CAR TRAVEL
Capital Traction Blames Automo
biles For Decline of Traffic
Since 1918.
HANNA BEFORE SENATORS
Says Mcclellan Bill Would Make
Fare Lowest in Nation.

The number of passengers carried
by the Capital Traction Company in
1923 was 6S.652.S .S6S, which is approx
mately 10,000.00G less than the mum
bcr carried in 1918, j. II. Hanna, vice
president of the company, told the
Senate District subcommittee today
which is considering the Mcclellan
five-cent street car bill.
Mr. Hanna attributed this decrease
in the number of passengers largely
To the increase in the number of auto
mobiles. He pointed out that lnspec-
tor Headley of the police department
had testified at the traffic hearings
that the number of automobile Ii
"enses had increased in the District
by $1,000 in the period from 1918 to
1923.
Discussing the MCKellar bill. Mr.
Hanna told the committee that the
proposed legislation would. in real
ity, mean an average fare of i
cents per passenger. This, he said,
would be the same rate as thal
10S. when the wages of trainmen
were under So a day for a fourteen
to sixteen hour day. AT present
Mr.. Hanna said. the company is pay
ing trainmen $3.50 for a ten-hour
day. He added that new rate OF
$3.50 a day has just been announced
by the arbitration board.
Proposed Rate Lowest in L. =.
The rate of fare proposed in the
McKellar bill, Mr.. Hanna continued,
is lower than that charged in any
othpr city of the United states. ac-
cording to information obtained by
the company. in spite of the fact
that the underground system here is
more expensive than in any other
city except New York.
Mr. Hanna said also that the bill
proposes to have the rate of fare tiXed
by legislation. a method which has
been abandoned generally throughout
Practically All of the states. he pointed
out, have created public utilities com J.
missions to fix rates. In the case OF
steam railroads, he said, Congress
years ago turned over to the Inter
state Commerce Commission the duty
of rate making, and this had proved
far better than fixing rates by legis-
lation.
Mr. Hanna contended that the own
erS of the street railways in the Dis
trict are entitled to earn d fair re-
turn on the capital invested. He in
sisted that the yield under the pres
ent rates of fare for the combined
valuation of the two street railway
companies mad DeEu less Lndn Il lar
rate of return.
Earnings During Five Years.
Senator Mckellar suggested that
the Capital Traction Company had
earned IL per cent on its S12,000,000
of capital stock during the last five
years Mr.. Hanna denied this and
produced figures to show that the
earnings on the capital stock in that
period had been somewhat less than
II per cent. He Contended. however,
that the fair valuation of the company
as fixed by the Public Utilities Com
mission was the basis on which the
fair return should be estimated. The
fair valuation is approximately sl6,
oOO 900
Mr.. Hanna referred to suggestions
by Senator Mcclellan that the Capital
Traction Company has added to its
valuation by investing for capital ac-
count money earned through its oper-
ations, and that this was unfair to
the people of the District. Mr.. Hanna
said that the industries of the coun-
try, including agriculture, have been
built up through the reinveStment in
those industries of part of the money
earned through their operation. If
this had not been the practice, he
said, the country would not have made
the progress it has. He mentioned
Henry Ford as an instance where the
money earned by the concern has been
turned back into it to build it greater
and greater.
Mr.. Hanna completed his testimony
today, and the hearings will be re-
Sumed a week from Thursday, with
George e. Hamilton, president of the
Capital Traction Company, as witness.