The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1928-09-20
A(T, frs
0NNERCER
Plan, SAYS
CAPPER

The Public Utilities Cons
mission, in sharp letter from
Senator Arthur Capper, chair
man Of the Senate District
Committee, today, was warned
not to tamper with local street
car fares until Congress has
had q chance to pass uponthe.
proposed traction merger plan.
To grant an Increase in fares AZ
this time. Senator Capperf told tie
Commission. would be both unwise
unjustified. and contrary TO the
public interest as well ais injurious,
ultimately. to the companies inter-
ests''
Along with his letter. Senator Cap
per forwarded to the Commission
telegram he has jusH received from
Senator Arthur III Nandenberg, Of
Michigan, member TX the DISTRICT
Comniittee in which Senator Va
denkerg declared, y that the granting
Of a fare increase at the present
time would se9n to be contemptti-
( Gus both IF ptIhiic opinion and pub
he regulatory,
Eapdenbnrg's Wire
senator Nandenburg's telegram
folDws:
III Washington reports of present
stre6t railway fare increase are true,
i hone sou win emphatically protest
any aetion which disturbs the exist
ina status pending the outcome nf
our invest .gationS. Any silch in
crease at present would seem to be
COMMENTATORS both Of public opinion
and pubic regulation. All such ac-
ton should await findings OF pres
emf senate inquiry"
Senator Capper strongly condemned
the commissions apparent haste to
grant higher fares to the street car
companies. and suggested that after
postponing action ron the fare petit
tion pending the settlement of the
might well undertake new valua--
tion OF the properties of the two
companies. 1.a
"The questions involved in the
present rate case are Importance ana
intricacy." Capper wrote. There Is
no reason for any haste whatever
in passing upon them The financial
positions Of both street railway COM
panies is very strong. Their credit
is good and they have large reserves
"The commission would therefore
he fully justified in deferring It's
decision of the rate case until after
Congress has had opportunity 70
consider the merger proposal
THE commission can, of course.
In the mea ntime, If ii so desires,
undertake an inventory and valua'
ton of he street railway properties.
~n@k. yfr~ly oil nnU
this line having been done for IA
years
Senator Capper continued by sug-
costing that the commission could
also study the legal and economic
questions involved; such as whether
II has the right to raise the fares
of both companies when only one
has petitioned for raise, whether
Il would not be advisable to have
competition i'm rates and service he
tween the companies and whether
or not increased fares will bring
increased profits.
Question of Right
members of the Senate have in
the past seriously questioned the
right Of the Commission to raise the
= rates OF both companies when only
strated need of addition revenue"
Capper said.
He cited statistics to show that
the companies are not in urgent
need of increased revenue. pointing
out that the Capital Traction Com
pany Melted 1907 900 profit in 1927
and paid 7 per cent dividend on
its stock while the Washington
Railway and Electric Company with
it's subsidiary the Potomac Electric
Power Company earned $1,573,000
and has within the past year or
two increased its dividend rate from
4 TO z per cent.
'The Washington Railway and
Electric Company" Capper con-
tinued, has a surplus of more than
$4,000, 900. It's common stock has
sold recently as high as $433. Its
5 per cent preferred stock has sold
for $99% and other bonds for $l03.