The Washington times., 1924-04-24
7 On
RAPS CUT
|NFARE
Capital Traction Co. President
Quotes Authorities Against
Scent Proposition.

The defense of the Capital Trac-
ton Company against the Nickel
lar scent fare resolution was
placed squarely before the Senate
District Committee today by
George E. Hamilton, president of
the corporation.
The traction magnate made a
frontal assault upon McKellar's
basic contention-that the con-
tract, or charter obligation Of the
Capital Traction Company to pro-
vide a Scent or six-for-a-quarter
fare was irrevocable.
Quotes Legal Authorities.
The regulatory function delegated
by Congress to the Public Utilities
Commission in subsequent legisla.
ton necessarily carried with it the
right to alter and fix rates of
fare, Mr.. Hamilton declared quoting
at length from legal authorities to
buttress his argument.
constitute an irrevocable contract be-
ment, so far as the rate Of far was
concerned?" asked Mr.. Hamilton.
I'VE contend that no such contract
was created or intended 20 be
created. .4
I'm the act of March Ia, 1913,
creating the Public Utilities Com
mission, the duty and the authority
to fix rates which would give to
the companies a reasonable return on
the fair value Of the property Of
the respective roads was stated in
clear and unmistakable terms.
Cites Congress- Words.
I'm this act Congress delegated. in
plain language, its right to regu.
late, modify, and change the rates
Of fare to the Utilities Commission
created by that act.
ITO contend that it was the pur-
pose Of Congress to bind these COM
panies to the rate Of fare estab.
lished when the charters were
granted is unthinkable, and 1t was
to give to Congress the right Of con-
troll and regulation that the reserva-
ton Of power to alter, amend, and
repeal was inserted in the charter"
Mr.. Hamilton declared that the
rate OF fare fixed by the charter
would have been confiScatory dur.
ing the war period because Of the
natural and inevitable change In
conditions and increased cost of
operation.
Can it be conceived that Con.
gress would commit itself to a con-
dition that would be clearly Illegal
and unconstitutional" asked the
magnate.
Rate Called COnfiscatory.
Can Congress fix any rate of
fare that does not yield a reasonable
return upon fair value? Can 1t say
to the Utilities Commission: You
must establish the fair value Of the
company as a guide for fixing the
rate Of fare, but whatever may be
the value established, you must not
go beyond scent cash. siX tickets
for a quarter fare. This Is, in eff.
feet. what would result from pas
Usage of the bill now under discus
sion."
Mr.. Hamilton further declared
that Conrad Syme, counsel for the
commission during the valuation
proceedings, and called by Senator
Mcclellan as a witness before the
Senate District Committee. gave 1t
as his opinion that 1t would he i'm
possible for the companies to live
on the fare contemplated in the
Mcclellan bill.
Not Rubber Stamps"
II do not believe that il the ad-
ministration Of the several Public
Utilities Commissions are exam.
med, 1t can be fairly stated that
they have been simply rubber
stamps for utilities companies"
said Mr.. Hamilton in reply to Nc
Kellar's charge that the tribunal
had been subservient to the local
traction companies.
Referring to Senator McKellar's
charge that "watered bonds" Of one
OF the old constituent companies
OF the Capital Traction Company
had created a fraudulent value upon
which the street car users Of Wash
lngton are forced to pay a toll,
Mr.. Hamilton said:
Plan Illegal. He Says.
by what reasoning or on what
grounds 1t can be asserted that the
$4,000, 900 in value Of bonds of the
Washington and Georgetown Rail-
way Company, over and above their
par value. was included in the find.
ings of fair value by the commits
sion is hard to understand, impos.
sible to find, and Is disproven by
the testimony Of Mr.. Syme, ty the
testimony Of Mr.. Hanna and by the
dissenting opinion Of Commissioners