The Washington times., 1928-05-07
/ RE RAISE II
H RGER FAILS,
Threatened

IT the traction merger Is not APP
lrroved during the present session Of
congress. the Capital Traction Com
pany will Immediately asked for q
higher fare. John H. Hanna. presi-
dent Of The company, amounted to-
day at the merger hearing before the
House District COMMITTEES.
Hanna said he was not in a posi-
tion to state whether the Washing
ton Railway and Electric Company
would make q similar application,
hut pointed out that fare increases
have applied to both companies I'M
the past.
The traction head denied that his
announcement. was threat, but ex-
plained that ii would be impossible
for his company to withhold the APP
plication an longer IL the merger
negotiations fail.
He pointed out that the Capital
Traction Company has not asked
for higher fares yet. in spite of
the fact that 1t has earned less
than per cent on its valuation
for seven years.
X
application, first, because they had
hoped that the inroads on their
patronage by automobiles would
stop and, secondly, because of the
merger negotiations.
Autos Cut Receipts
Last fall, he said, the board of
directors of the Capital Traction
Company authorized him to apply
for higher fares but the applica-
ton was delayed because of the
merger negotiations. He said the
delay had caused stockholders to
criticize the company management
and for that reason the application
would be made as soon as nego.
tiations failed.
Hanna predicted that the Public.
Utilities Commission will have to
grant the increase, as the Capital
Traction Company is now earning
less than per cent on its yalua-
ton.
y The Capital Traction head was
the only witness at the hearing to.
day. Either he or William F. Ham.
president OF the Washington Rail.
way and Electric Company. is ex.
pected TO testify this afternoon at
the first afternoon session of the
hearing.
Wilson to Testify
Harley p. Wilson, owner of the
washington Rapid Transit Com
pany, and originator of the merger
plan, Will testify tomorrow. He
was called at the opening of the
nearing today but was not
present.
Most OF Hanna's testimony TODAY
was devoted to answering the at.
lacks on the merger plan which
have been made by William Nick.
CLAYTON and other civic leaders.
Hanna asserted that the plan
would result in great ADVANTAGE to,
the public and that the advanta ges
TO taxpayers would more than oft.
weigh the additional burdens trans.
ferred to them In paving costs and
policemen's salaries.
Hanna defended the s26. 900. 900
valuation of the Capital Traction
Company by the Court of Appeals.
on which the $50, OO0. 900 merger
valuation Is based.
II new valuation of the com.
pany were made today, the prir.
ciples followed by the court in the
old case would have to be followed
again and the valuation would be
as high or higher than now" Hanna
declared.
Hanna said that the most i'm
mediate benefits to the car riders
through the merger would be the
fact that for at least a year there
would be no increase in fare and
possibly there would be no increase
in fare at all, while without a
merger there would have to be an
immediate increase.
Want 10.Cent Fare
Hanna said that II would take
lucent fare to give the stockholders
1 fair return on the company's
valuation.
Many loose endss II, the pro-