Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-09-09
CAR-FARE HEARING
OPENS TOMORROW
w. R. & 6. Co. Not Made
Party to Application by
Utilities Body.

Hearings on the application of the
Capital Traction Co. for an increase in
street car fares, granted by the Public
Utilities Commission under unusual
circumstances, will open tomorrow
morning at 10 o'clock in the board
room of the District Building.
Whether the proceedings will be
halted in view of the failure of the COM
mission to take steps to bring about a
revaIuation of the street car company
properties in connection with the ap-
plication is one of several decisions
which may be reached at the outset
of the hearing. Ralph B. Fleharty
peoples counsel, is understood to take
the same position as the Federation Of
Citizens Association, that the granting
Of increased rate should not be con-
sidered at this time, partly in view also
Of the pending merger case before Con-
gress.
The commission ignored the precedent
established by the former commission
by issuing a formal order without max
ing the Washington Railway & Electric
Co. a party to the application. Under
the policy of recent years all traction
companies in the District have been
made parties in rate increase cases
whether they wished to be or not.
Did Not Join Plea.
The Washington Railway g. Electric
Co, for reasons of its own, did not join
in the recent application made by the
Capital Traction officials, who made
good on their threat to do so, when the
merger agreement was blocked at the
last session. Owing to its affiliation
with the Potomac Electric Power Co.
the return for the Wreco system, under
the present fare, is higher than that of
the Capital Traction Co.
Oficials of the Washington Railway
g. Electric Co. will be on hand tomor-
row to state the position of their COM
pany in the immediate case. The atti-
tude of the federation opposed to the
encounter before the Commission.
Whether the Washington Railway &
Electric Co., in view of the dual system
in Washington, will be made party to
the rate hearing now or afterwards, is
q matter which the Commission prob
ably will decide at the outset of the
hearing. Members of the Commission
gave no reason why the order did not
include the rival company, though they
admitted the Commission was flying in
the face of precedent. They agreed,
however, that if the Capital Traction
Co. is granted an increase the new rate
would have to be. extended to the rival
company. A situation wherein one
al q
rate than another could hardly be al
lowed to exist, it was declared.
Provides Continuance.
The proposed merger agreement
which extends to June !, 1929, provides
for a continuance of the present rate
of fare for a period of one year after
the effective date. This guarantee can-
not be displaced even should the COM
mission grant higher fare before Con-
gress ultimately acts on the merger.
It was pointed out that a Decent cash
fare. for instance, would continue only
until Congress approves the merger
when the companies would avert to the
present scent fare or six tokens for
40 cents for period of one year. All
this, however, is based on the super
sition that Congress would enact the
merger before expiration of the agree
nlent next June l.
The Capital Traction Co. has asked
for a straight 10-cent fare or four
tokens for 80 cents, in lieu of an Scent
cash fare, existing transfer regulations
20 remain.
1t is estimated that a 10-cent straight
fare would provide an increase Of $780,
600 gross, or about $500, 600 after de-
Quoting for franchise and income tax
This would represent q return Of 5.33
per cent as against 3.88 per cent for
last year.
Coupled with the company's request
for a higher fare is an application for
the adjustment of free transfers be-
tween the street cars and the bus line
operating to Randle Highlands from
Pennsylvania avenue and Seventeenth
street southeast. A third proposition
is involved in the petition of citizens to
abolish the second zone fare to Hill
crest.