Evening star., 1928-06-15
INCREASE |NFARES
ASKED BY CAPITAL
|. TRACT|ONCOMP ANY
Straight Scent or 10-Cent
Charge, With d Tokens for
80 Cents, Requested.
W. R. & E. Is NOT A PARTY
TO COMPETITORS ACTION
Ham Says There Is Little Likeli-
hood His Firm Will
Join in Plea.

A straight S-cent cash fare, or an al
Tentative of 10-cent cash fare, with
tokens for 80 cents, is sought by the
Capital Traction Co., in an application
for relief filed today with the Public
Utilities Commission. The Washing
ton Railway e. Electric Co. was not a
party to the request.
The existing rates are cents cash.
or s tokens for 40 cents, on both of
the street car lines. The s-cent cash
fare proposal would raise the present
rates 1-3 cents on the token charge.
In the alternative proposal the cash
fare would be increased cents and the
token rate raised from 62-3 cents to
7ia cents.
There Is little likelihood that the
washington Railway g. Electric Co. will
Join the Capital Traction in seeking A
Iare raise. William F. Ham, president
of the former, said today that neither
the directors nor the stockholders had
even considered asking for a higher
Iare, put ne mad no further comment
10 make on the action Of the opposition
company.
Situation in 1918 Recalled.
Thus, the Capital Traction Co. finds
itself IN the same position that tI1e
washington Railway & Electric Co. did
n 1913 when the latter appealed 10
the utilities commission for a higher
iare and the Capital Traction Co. de-
cnned 70 become a party to the re-
GUEST. The commission, however. raised
The fares at that time, and applied the
increase to both companies. Whether
the commission viii follow this pro-
cedure IN the Capital Traction Co. case
IS purely matter Of conjecture
Tne Capital Traction Co, through
us president, John II. Hanna. announc-
ed that because Of the poxtuonement
oI the proposed transit merger. IL has
been forced to appeal for relief as for
more tnan three years now II has failed
company pointed out, however. that a
nat 10-cent fare would be necessary 10
enable 1t TO earn that return, but that
u Is very much disinciined 70 ask for
greater increase over existing fares
than Is necessary to take care OF the
present urgent situation" In its peti-
ton. 1t reserves the right to apply for
such rate OF fare as VIII allow rea-
sonable return" on the $26. 6.e0O. 900 VAL
uatlon OF the courts should the merger
negotiations fail.
In support Of its application for a
higher fare. the company explained that
there are 26 cities of more than iOO,-
600 population In the United States
where a 10-cent fare is charged. and
that the bulk Of its stock Is owned by
Washington men and women. who de-
pend largely upon 1t for their living.
The directors Of the company are
merely trustees for the stockholders"
said Mr.. Hanna
Text Of Application.
They believe the public generally.
wnen they become familiar with con-
ditions, VIII be willing to pay the mod
crate increase in fare requested"
The companys application to the
commission, which was authorized by
tne directors at a meeting yesterday,
follows: ~
The merger agreement entered into
between the Capital Traction Co, the
Washington Railway & Electric Co and
Mr.. Harley P. Wilson. owner of the
majority OF the stock of the Washing.
ton Rapid Transit Co., contains the fol-
lowing provision:
But the existing companies shall not
be precluded from requesting a change
in fare II this agreement IS not an
proved by the present session OF
Congress
=, AAS tAlS CuuISe OF the hearings
the statement was made on behalf N
the Capital Traction Co. that II Con-
greSS tailed u approve the merger
agreement in the session just closed IL
could no longer postpone application for
an increased rate Of fare without seri-
ously leopardizing the rights Of It's
stockholders.
Testimony offered TO the commits
sion during consideration Of the merger
agreement showed that the Capital
Traction Co. during the calendar year
1927 earned only 3,ss per cent on the
Iair value OF Its property. as determined
ny the court OF final resort In the Dis
trict OF Columbia Our records show
that during the l2 months ending May
81, 1928. our earnings were $40 per
cent on that value, To enable the COM
pany 10 earn reasonable return on It's
value as thus determined would re-
Quire q rate OF fare approxiInating 10
cents nat. But, In view OF the situation
respecting the merger and our expecta-
ton that Congress will approve the
recommendation Of the commission for
the enactment OF legislation authorizing
IT, the Capital Traction Co. has decided
70 ask now only for such relief as Is
required to meet its present urgent
needs.
Accordingly. We respectfully petition
your honorable body 70 establish either
one OF the following rates OF fare IN
lieu OF the existing rate OF 8 cents cash
or tokens for 40 cents, on all street car
and bus lines operated by us I'm the Dis
Tict OF Columbia. where such fare Is
now In effect:
"(a) 8 cents cash. Or
"tb) 10 cents cash, tokens for 80
cents. Existing transfer regulations 20
remain unrhanCed
AS stated previously. this application
Is based on the expectation that the
merger, as provided IN the agreement.
VIII be conSummated Should Il fail 81
consummation. the company reserves
the right 20 apply for such rate OF fare
as viii allow II reasonable return on
the value OF It's property as judicially
determined
This application Is made BY dlrpe-
ton OF the board Of directors OF the
company at It's regular meeting held
June IL
Hanna's Statement.
Mr. Hanna pictured the plight OF his
company IN q statement addressed %
the street car riders Of Washington, IN
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