Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-10-17
Efforts to ForeStaII Increase
Believed to Have Failed
Before Commission.
THOUGHT TIED BY LAW
TO GRANT FAIR RETURN
W. R. & E. Complaint, However,
May Check Granting of Cap
ital Traction Appeal.
BY JAMES E. CHINN.

The likelihood of a higher street car
fare for Washington increased today
when it was learned that the Public
Utilities Commission had virtually cast
aside every suggested means to forestall
approval of the Capitol Traction Co.'s
application for financial relief.
The commission will meetin execu-
tive session again tomorrow morning to
dispose of the car-fare case if possible,
and will find itself in the position, it
was said, of being compelled by law to
grant the increase because the car COM
pany urges it on the ground of not hav-
ing earned a fair return on the valua-
ton which the Court of Appeals IN 1925
fixed at $26000,000. The company now
is earning 3.8 per cent on that valua-
ton and it claims that per cent is
fair rate of return.
w. r. & E. May Influence Action.
The only remaining practical move
that the commission now has to pre-
vent fare increase without going
around the law governing its action,
it was pointed out today, is to grant
the higher rate to the Capital Trac-
tion Co. and deny it to the Washington
Railway e. Electric Co. The latter did
not ask for the increase, but it in
formed the commission that If the Cap
ital Traction Co. is given a higher fare,
it wants to be similarly treated.
John H. Hanna, president of the Cap
ital Traction Co., at the outset. Of the
public hearings on the higher fare petit
fOI ice INof
increase is given to the competing COM
pany, his corporation would refuse to
accept it. Thus the commission could
by giving the Capital Traction Co. au-
thority to raise its fare defeat the
higher fare move.
There is a strong impression at the
District Building, however, that the
commission leans toward the policy Of
a uniform rate Of fare on both car
lines. 1t was recalled that some years
ago. when the Washington Railway &
Electric Co. asked for higher fare
the increase that followed was likewise
applied to the Capital Traction Co.,
which did not seek it, merely for the
purpose OF keeping the rate OF fare the
same on each line.
Instead of granting the increase the
commission can, it was explained, con-
tinue to mark time over the higher
fare application, as it has done in the
last several weeks, until Congress re-
turns and disposes of the pending tram
sit merger agreement. There was some
indication several days ago that such
a step might be resorted to but this
has been diSSipated by recent develop
mentS.
Congress Reckoned With.
The comission had hoped, it was learn
ed, that the Capital Traction Co. would
not press its plea for financial relief
until Congress had made known its at
titude with respect to the merger agree
ment. In fact, overtureS were made to
the company some time ago to have the
application withdrawn, but 1t declined
to do so.
Should the commission refuse to apply
any increase it might grant to Capital
Traction Co., to the Washington Rail-
way s. Electric Co., it is believed in
public utility quarters that the latter
would have no basis to appeal to the
courts. If so. on the other hand, the
Washington Railway & Electric Co.
did later apply for an increase the
commission would be forced to revalue
its property, as no court valuation has
ever been fixed on it. This would con-
sumo year or more and defer action on
the petition for that length Of time.