Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-09-12
OFFERS EVIDENCE
.ON TRACTION STOCK
Fleharty Cites Capital Trac-
tion's Condition in Fight
on Higher Fare.

In an effort to refute the claim of
the Capital Traction Co. that it is en-
titled to a higher fare, Ralph B. Fle-
harty, peoples counsel, offered the Pub
lie Utilities Commission evidence bear
ing on the condition Of the companys
stock, quoted at 1o9, over the protest of
traction officials today.
He succeeded later in obtaining an
admission that the second year Of the
fare increase, if granted. would more
than cover all deductions previously
made from the company's surplus to
maintain payment of a per cent divi-
dend on its stock.
The Public Utilities Commission to-
day was concerned only with the case
of the Capital Traction Co. In accord
snce with Yesterdays decision, 1t issued
formal notice today that public
hearing would be held September Il to
determine if the increase in fare, II
granted, should apply to the Washing
ton Railway g. Electric Co., the Mount
Vernon, Alexandria & Washington
Railway Co. and the Arlington & Fair
fax Railway Co.
The Washington Railway 81 Elec-
trio Co. has not formally asked for an
increased fare, but its officials have
informed the commission their COM
pany wishes to share in any increase
extended to the Capital Traction lines.
The commission yesterday overruled
Fleharty's motion to dismiss the hear
ing and at the same time reversed
fromer decision by ordering the WASH
t,,~ OF ~
come a party to the proceedings.
Heberle Questioned.
Fleharty today questioned j. E. He
berle. assistant to the president of the
Capital Traction Co.. for charts show
ing the trend of stock sales. When
Heberle said he had none Fleharty
volunteered to offer the commission
evidence taken from the Stock EX-
change bearing on all transactions in
the company's stock and its quotations.
John H. Hanna. president, and G.
Thomas Dunlop, general counsel, i'm
mediately objected. The former de-
clared that the company had not ap-
piled for full relief. but had asked only
enough to protect its interest.
He contended the arrlication was
not based on the maintenance of a
ulN AuCIAus duQulS lIldt pICNIOuS
ment as to the desire to continue Z
per cent dividend was made simply as
an explanation of why the company did
not ask for all the relief it was entitled
to- in filing its application.
While the commission decided to
admit the evidence for its "informa-
tion," Chairman John w. Childress said
it would have no technical bearing on
the situation as affecting the Capital
Traction Co.
Then it would be useless to offer it,
Fleharty said.
The day was largely devoted to statis-
tics offered by Heberle in supporting the
application of the traction company for
a higher fare. Throughout his examina-
ton of the witness. Fleharty sought to
prove that the company wished merely
to keep up payments of a per cent
dividend.
He obtained from the traction official
the admission that the company Is
under no obligation to pay any given
dividend on its stock
If per cent instead of per
cent dividend had been paid in 1926,
he brought out that approximately $50.-
900 would have been added to the sur
plus. Assuming a 6 per cent dividend
had been paid, the company would have
lacked only $12,546 to meet an eQuiva-
lent dividend in 1927.
With straight 10 cent cash fare and
Continued on Page 2. Column 6)