Evening star. [volume] (Washington, D.C.) 1854-1972, 1925-12-28
Companies Would Be Ruined,
Commission Tells House
Committee.
FIGURES ARE OFFERED
TO SHOW RATE UNJUST
Effect on Service Would Be Disas-
trous, Statistical Report
Declares.

District committee on the 3-cent car
fare bill is recommended by the Pub
lie Utilities Commission of the Dis
triCt on the ground that IT would
he ruinous To the street railway com
panies and disastrous to the service
now furnished by these Compa MES.
This report by the Public Utilities
Commission was received today by
Chairman Zihlman of the House d.
trict committee, who had asked the
Commissioners to report on this
measure which carried provision for
tickets at the rate of six for 25 cents
with school tickets, to be sold on all
days of the week expect Saturday
and Sunday at the rate of fare OF
three -fourths the regular fare charged
adults.
The reply came from the Public
Utilities Commission of the District
because the District Commissioners,
ex officio. comprise the commission.
Figures Are Offered.
The report points out that the
Capital Traction Co. has carried dur
ing the first 10 monUns OF the present
calendar year l5.421. .S02 cash pas
sengers and 37.S72.7s1 token pas
sengers. Had these passengers paid
the rate of fare described in the D.
cent fare bill. exclusive of the reduC-
uion for the school tickets, the com
pany's revenues would have been
S2349l22.60. The company's actual
operating expenses for this period.
not including taxes, have been 81
5S4 .48Os5. as shown in its statement
y to 10 n IN
Utilities Commission. which amount
is s235,35S25 in excess of what the
receipts would have been at the rates
prescribed in the scent fare bill.
The report shows similarly that the
Washington Railway and Electric co.
dncluding its subsidiary street rail
way companieS) carried for the same
10-month period 1890. $50 cash pas
Sengers and Al, ,462 .541 token paSSen-
gers. Had these passengers paid the
rate of fare prescribed in the scent
fare bill. exclusive of the reduction
due to school tickets, the comDany'S
revenue would have been s2.724 .635.37.
The company'S actual operating eX
penses for that period, not including
taxes. have been s3 92S .265.04. as in
dicated in it's statements submitted
monthly to the Public Utilities Com
mission. which amount is 81 ,203 .629 67
have been al the rates prescribed in
the scent fare bill if in effect.
Passenger Total DwindIes.
The effect of the rate of fare pro
posed under the scent fare bill is set
forth in tabular form for both of these
street railway companies for the cal
endar years 1922. 1928 and 1924. show
ing a steady decrease in the number
of passengers carried The effect on
the revenue of the two companies
through reduction in fare to cents
cash or six tickets for 25 cents,
proposed in the bill, is shown for each
of the years 1922, 1923 and 1924, the
deficit for the Capital Traction Com
pany being in 1922, s95 1854 for
1923, S136,19S.05. and for 1924, s226,
67744; for the Washington Railway
and Electric Co, in 1922. the deficit
would have been 81 1852 1897: in 1923,
slo9o. .566. .27. and in 1924. S1.2S6 ,665.59.
President Rudolph of the Board of
Commissioners. in his report to Mr..
Zihlman, emphasizes that no attempt
has been made in preparing this data
to- estimate the additional loss in reve-
nue. that would result in further
reduction in the rate of fare for school
children.
He says: "It is the duty of the Pub
lie Utilities Commission. under the act
of Congress creating it, to observe
closely the operation of these corpora
tons, a duty which it is constantly
exercising.
The commission is unable to see,
from its analysis of the operating eX-
penses of these companies, how they
can be reduced sufficiently to offset
the deficit that would result from the
imposition of the rate of fare pre-
scribed in H. r. bill 1905, and at the
same time enable the companies not
only to maintain the present high
standard of service, but in addition to
these expenses, to earn enough to pay
taxes and interest on bonded debt, to
say nothing of dividends. The only
possible way in which such defclt IN
operating expenses could be met would
be through substantial reduction in
wages and extensive curtailment of
service neither of which measures
would be in the interest of the public.