The Washington times., 1924-04-14
BUSINESS
HURT, IS
CLAIM
William Nick. Clayton Gives
Figures at Traction
Value Hearing.

Operation Of the Rapid Transit
bus lines retards the lowering OF
the street car fares on the trac-
ton lines of the District, William
Nick. Clayton, representing the
Federation of Citizens Associa-
tions, declared at the final hear
ing before the District Commits
sioners today on the Transit lines
application for an increased fare.
Opposes Increase.
Mr.. Clayton vigorously opposed
the allowance of an increased fare
and declared that he was surprised
to find the Rapid Transit Company
in an even more Furnishing posi-
ton than he had expected.
"The company has made money,
although it has not paid dividends
he said, land has made it largely
by granting enormous salaries to
its officers, all of whom are Sc
lected from the stockholders of the
company"
Every UuS EtuOF rs pOISHlIdL1y d
street car rider" Mr.. Clayton de-
ciared. IF all of the bus riders Of
last year had ridden on the traction
lines we could have today a de-
creased car fare"
Cites Figures.
Mr.. Clayton cited figures which
he said showed that the company
during the three years of it's ex-
perience had showed a profit of
nearly 100 per cent. 1T has not
paid dividends" he said, but It has
turned back into the assets OF the
company the profits it has accumu-
lated"
Mr.. Clayton intimated that he
would also oppose any attempt to
replace the obsolete buses now in
operation with double deckers."
Such a substitution, he, suggested.
would necessitate the cutting OF
the trees along Sixteenth street tc
allow the buses to pass beneath
them.
The hearing today, although pri.
marily on the valuation of the
Rapid Transit Company, developed
quickly into a discussion of the
application for an increased fare.
Syme Speaks for Company.
Conrad H. Syme, outlining The po-
sition of the company, declared that
the company had never been able
to pay dividends, that it had been
compelled to use its depreciation al
lowanceS to insure operation of the
buses, and that the company was
unable to borrow money unless it
could show a prosperous position
+ end could pay dividends.
A 10-cent fare would enable the
company to get it's feet on the
ground and to continue in exist.
Once, he declared.
Fifteen of the thirty.siX busses, ne
said, are unfit for passenger service
and must be replaced within the
next six months, and the remain
ing tWenty-one are obsolete and
must be replaced within a year
or two, he declared.
Figures presented by Secretary
Allen, Of the Public Utilities Com
sion, showed that with a 1O-cent
fare on the valuation of the COM
pany, as made by the commission
of approximately 1927, 900, and es-
timating that the number of pas.
sengers for the coming year would
be the same as last year, the COM
pany would receive 3.24 per cent
rate of return.
Estimate Is High.
Estimating the return on an in.
creased fare of 10 cents straight and
six tokens for so cents, showed the
company would receive rate Of
return of 1888 per cent. Allowing
on the latter figures an additional
expenditure of $114,0OO for new
buses, the rate of return would bc
4.6 per cent.
1t was estimated that only Is per
cent of the riding public would pay
a straight fare, the remaining SIS
per cent taking advantage OF the