Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-10-05
VALUATION LOOMS
IN TRACTION CASE
Utilities Commission May
Undertake Job of Fixing
New Income Basis.

A revaluation of the property Of the
Capital Traction Co., now regarded in
public utility circles as one of the last
remaining moves to forestall probable
increase in street car fares. may be
undertaken by the Public Utilities Com
mission, it was indicated today at the
District Building.
A valuation would take more than a
year to complete and would keep exist
ing car fares in check for that period,
it was pointed out, unless the company
in the meantime went direct to the
courts with plea for financial relief
on the ground that the present rate
of return on its existing valuation con-
StituteS confiScation of property.
Since the commissions refusal to dis
miss the petition on the ground urged
by Peoples Council Ralph B. Fleharty-
that the company is not in a poverty
stricken condition-the commission now.
it was said. likely will either be forced
to grant the increase or to make a new
valuation.
The commission, under paragraph 8
of the act creating it, is given authority
to make a new valuation on its own
initiative at any time But there is some
fear on the part of the commission. 1t
was intimated. that revaluation would
result in an increase over the present
value fixed by the commission and
thereby pave the way for the company
to demand n still higher fare than 1t
now asks This is the primary reason,
1t was said. why the commission has
been somewhat hesitant in taking this
action. Moreover. it was said. new
valuation would cost more than 100000,
which the car company would be re-
quired to pay. and which would ulti-
mately be borne by car riders IN the
form of higher fare.
However, William A. Roberts, vice
chairman of the public utilities COM
mittee of the Federation of Citizens
Associations, who has taken leading
part in the fight to prevent fare In
crease. i~sued a statement today de-
claring hat the commission is legally
bound to make new valuation with
each rate inquiry. Roberts also APP
pealed to the commission to suspend its
decision on the fare case until after
Congress passes on the merger agree
ment.
The commission does not plan to give
any further consideration to the case
until Monday. when it will proceed, 1t
announced, to consider it upon the
record.
I'm presenting my argument before
the Public Utilities Commission In OPP
position to any increase in the rate OF
fare" Roberts said II did not reply for
dismissal of the proceedings brought by
the Capital Traction Co. upon the tech
nical objection that the companys prin-
cipal contention was for revenue support
to pay dividends. Instead / placed
an issue of the question of val
uation which 1 have repeatedly insisted
Is the cruX of the whole matter.
'The law Is specific that concurrent
with each rate inquiry there must be
new and current valuation of the prop
erty of the utility. / stated at the hear
ing and now reiterate that the Public
Utilities Commission should suspend its
decision until after Congress passes on
the proposed merger, for iustif1able rea-
sons of public policy and further that
1t should decline to modify the rate of
fare until proper valuation, based on
legal principles, is completed for both