Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-09-25
HAMILTON SCORES
CONGRESS FOES Of
CAR FARE INCREASE
Capital Traction Chairman
Denies Firm "Begs for
Consideration"
WOULD APPLY BOOST
TO BOTH COMPANIES
Hearings Closed Today-Childress
Promises Commissions Decision
at Early Date.

The kilograms of members of Con-
gress protesting against raise in car
fare at this time. which were received
in answer to a request from the Peoples
Legislative Service, drew the fire Of
George E. Hamilton, chairman of the
board of directors of the Capital Trac-
ton Co., in his closing argument to the
Utilities Commission today, bringing the
rate case to close.
Mr.. Hamilton summed up the case
by declaring the company is not beg
ging for consideration, but asking only
for relief to which it is entitled under
the utilities law, and he supported the
contention that in order to give effective
relief to the Capital Traction Co. the
increase should be applied to the Wash
ington Railway & Electric Co. also.
When Mr. Hamilton had concluded
John w. Childress, chairman of the
commission, announced the close of the
| hearings and said the commission would
| render decision at an early date. In
taking the case under Amusement the
F., commission has before it for action q
motion by Ralph B. Fleharty, peoples
counsel, to dismiss the Capital Trac-
| ton application for an increase. An
nouncement was m~de several days ago
| in the hearings that the commission
would decide whether valuation of the
railway properties Is necessary before
reaching final determination on the
| application for an increase III fare.
Opposes Postponement.
Mr.. Hamilton argued that the COM
mission should not postpone action on
the rate increase because the merger
agreement is pending in Congress, con-
| tending that the Capital Traction Co.
! already has delayed seeking relief for
several years and that there is no GER
tainty as to when the merger will be
| finally completed. It has been stated
during the hearings that If the fare
| should be increased now and the
merger should later be approved, the
present rates would be, restored for at
lest one year under the terms of the
merger plan.
Mr.. Hamilton declared that II, on the
other hand, the merger plan is not
! approved, the distress of the company
would be mounting continually if re-
! lief Is not granted at this time. Re-
ferring to the status of the merger, Mr.
Hamilton said:
viii Congress approve it? Who can
tell? No one knows better than you
the delays accompanying legislation.
The action OF Congress is as uncertain
as that of a jury. They may pass
! merger, but it may not be the merger
the companies have agreed to or would
accept"
Legal Action Seen.
| Mr.. Hamilton added that Congress
may inject into the merger plan con-
d1t1ons that would call for legal steps.
He took exception to the argument of
those opposed to an increase that L..
! application at this time is an affront
to Congress. He said it was possible
Congress might decide that the inves-
tigation now being made of the merger
IS not sufficient and that new valua-
| ton should be made for their guild
ance. If that should develop, he said,
the company would be penalized dur
ing that period of time If an increase
IN rates Is postponed pending settle
ment of the merger.
| Mr.. Hamilton asserted that the tele-
grams OF protest from members of Con.
gress were brought in by solicitation as
a result OF the telegram sent to them
| by Mercer G. Johnston, director of the
Peoples Legislative Service. Mr.. Ham,
| ilton also questioned the statements
| contained in Mr.. Johnston's message to
the members of Congress, which pro-
duced the protest. He added that those
who made the protests were not famil-
lar with the conditions before the Utili-
ties Commission for decision
The Capital Traction official said the
sending OF these protests was on a par
with creating court and then telling
! the court what it should do with a case
| pending for decision.
Recalls Valuation.
In support of his contention that the
! Capital Traction Co. is legally entitled
to relief at this time, Mr. Hamilton re-
| called that in 1925 the courts found
the commissions valuation of the Cap
ital Traction Co. was insufficient, and
| that the court decisions made the value
of the Capital Traction Co. about S26,-
! 100000. He said that at that time the
company was not earning quite per
cent on S26,000,000, and that it had
delayed applying for relief until a short
time ago.
just before the hearing closed, Ken
meth p. Armstrong. a member of the
utilities committee of the Rhode Island
Avenue Citizens Association and of the
Federation of Citizens Associations,
went on record against an increase in
fare. Mr.. Armstrong stated that he
also vas a member Of the committee of
the Board of Trade but on that COM
mittee he said he was on the minority
side In the consideration of the rate
case.
Closing Arguments Made.
For two hours yesterday afternoon
the commission heard closing argu-
mentS of both sides, in which peoples
counsel and representatives of the
Federation of Citizens Associations
predicted an increase In fare at this
time would endanger merger, while
lawyers fer the companies reminded
the commission that its duty under the
law Is to grant relief If 1t finds a prop
er showing has been made
Peoples Counsel Ralph B. Fleharty
and William NICK. Clayton of the fed.
Grafton. both laid strong emphasis on
the enect a fare increase might have
on the chances Of carrying out the
merger proposal pending In Congress.
and both urged the commission TO dis
miss or postpone the rate case until it
Is known whether Congress Is going
to approve or reject the consolidation
agreement.
Attorney c. Thomas Dunlop, for the
Capital Traction Co., said that If the
commission decides the case on its
merits 1t will find the company needs
the increase: Mr.. Dunlop previously
had urged the commission not to be
swayed by the kilograms Of protest re-