Evening star., 1928-06-15
INCREASE IN FARES
ASKED IN PLEA BY
TRACTION COMPANY

Continued from First Page)
IT he declared that the action in seek
ing a higher fare was taken with re-
gret because of the postponment Of the
merger. The statement reads:
For more than three years this
company has failed to earn its dividend
of per cent. For much longer 1t has
not earned reasonable return on the
value Of its properties, legally estab-
lished. Entitled unquestionably to re-
lief, it has postponed applying for it,
hoping that traffic losses due to wide
spread use of private automobiles would
end.
Instead these losses have contin-
ued. Last September the directors de-
cided they could no longer refrain from
applying for higher fares. without In
justice to the stockholders. That deci-
sion was published generally and re-
peated references were made to it at
public hearings. Before fare increase
application could be filed, however, II
became evident that an agreement to
merge the three principal Washington
transportation companies might be
| reached.
Realizing the great possibilities foI
economies and improved service in q
merged company, the directors post
poned the fare application, believing the
advantages Of merged company were
so manifest that approval Of the merger
plan by the Public Utilities Commission
and Congress would be forthcoming. A
merger plan was worked out; 1t was ap-
proved by the stockholders and, with
some changes. indorsed by the Public
Utilities Commission. The House Dis
trict committee reported IL favorably
but Congress, nearing its end, took nc
action before adjournment. Congress
does not meet again until December.
the value OF our property In the
District used for public service has been
fixed by the courts at over $4,000 600
In 1927 our earnings. over and above
operating expenses and taxes, were con-
siderabiy less than per cent on that
value. The United States Supreme
Court has held that less than a z per
cent return on fair value is conhScatOry
Commissions and courts frequently have
held that 7i2 per cent to 8 per cent Is
reasonable return for utilities.
ITO enable us TO earn such a return
would require approximately fiat fare
Of 10 cents. We are very much dis.
inclined to ask for greater increase
over existing fares than is necessary tC
take care of the present urgent situa.
ton, but we are convinced that We
should no longer delay seeking neceS.
eary relief. An application, therefore
has been filed with the Public Utilitie:
Commission asking q straight fare of
cents cash, with an alternative sug.
gestion that it may rather direct us tC
establish q 10-cent cash fare with foul
tokens for 30 cents.
There Is provision In the merger
agreement that existing fares would
not be raised for at least a year after II
became effective. There was and Is also
present In the minds Of those concerned
very well defined hope that the econ
omies and the improved service only
possible with a merged system would
prevent any increase In fare for a much
longer time.
"The management Of this company
regrets, because of the p0stponement OF
a merger. 1t must ask for an increase
now. 1t is proud Of the esteem in which
It is held by thousands. 1t believes 9
majority OF its patrons know that 1t has
dealt reasonably, honorably and fairly
throughout long history. Public
esteem is an asset Of the highest value
but, confronted with the hard facts
stated, the company cannot continue 70
jeopardize the investment and income
of thousands of stockholders through
failure to seek relief to which 1t Is
legally and morally entitled.
There are 26 cities Of over 100000
population In the United States where
10-cent fare is charged. They are:
Albany, Atlanta. Boston, Bridgeport.
Buffalo, Cambridge, Cincinnati, Des
Moines, Fall River, Fort Worth, Grand
Rapids, Hartford. Houston. Lowell, New
Bedford. New Haven. Norfolk. Omaha,
Pittsburgh. Salt Lake City, San An
tonic, Seattle, Springfield. Syracuse,
Toledo and Worcester.
mo individual or corporation owns as
much as per cent of the Capital Trac-
ton Co.'S stock. The bulk of 1t belongs
TO Washington men and women, who
depend largely upon 1t for their living.
The directors Of the company are
merely trustees for the stockholders.
They believe the public generally, when
they become familiar with conditions,
will be willing TO pay the moderate In
crease in faro requested"
VIII Oppose Increase.
william Mex. Clayton and William A.
Roberts. chairman and vice chairman.
respectively, Of the public utilities COM
mittee of the Federation OF Citizens
Associations, have previously served no.
tice that they would oppose any change
In the rates of car fare. In q supple
mental statement today, MIR. Roberts
said:
"It is my intention to offer q vigorous
protest on the part OF the organized
citizens OF Washington against the Cap
ltal Traction Co, demand for an increase
In fare without q sincere inquiry into
It's operating expenses and valuation
"The Federation OF Citizens Associa-
uons has neither the money. nor is 1t
their duty TO present an affirmative VAL
uation case, Members Of the Utilities
Commission and the peoples counsel
arc paid literally out of the public reve-
nue to protect our interests. and have
the personnel and data 10 show that an
increase Is absolutely unwarranted That
ts their duty"