Evening star., 1928-10-25
.TEN-CENT CAR FARE
BID IS DISMISSED
Application Is Disposed OF
Pending Congress Action
on Transit Merger.

Dismissal of the long pending appli-
cation Of the Capital Traction Co. for
a 10-cent fare was finally ordered late
yesterday by the Public Utilities Com
mission, which at the same time def
nitely disposed of the question of higher
car fares pending action of the coming
session of Congress on the transit mer-
ger agreement.
The commission turned down the pc
tition without prejudice to the company
to renew its plea for financial relief
after next March S, following the ad-
journment of Congress, and without
passing upon any of the issues involved
with which 1t has struggled for the last
several weeks. This included the ques-
ton Of revalaiation Hnd the right of the
company to earn fair return: The
Capital Traction Co. and the Wash
ington Railway a. Electric Co., both
agreed to accept the order and to make
seek any increase until Congress passes
on the merger pact.
Procedure Surprising.
The procedure followed by the COM
mission in disposing of the case came
as distinct surprise in view of plan
tentatively agreed upon earlier in the
week. This plan, suggested by Corpora
ton Counsel William w. Bride, the
commissions general counsel, proposed
first to deny the increase to the WASH
ington Railway and Electric Co., which
did not ask for it, but was made a
party to the case in the interest of a
uniform rate of fare. The commission
then would notify the Capital Traction
Co. that since its president, John H.
Hanna, had publicly stated that 1t
would not accept higher fare unless
it was applied to the competing COM
pany, it would be idle to grant its ap-
plication.
The procedure adopted was radically
different, however. 1t was framed at a
hurriedly arranged conference between
members of the commission and off,
cials and legal representatives of the
two car companies. These included
President Hanna of the Capital Trac-
ton Co., George E. Hamilton, chair
man of that company's board of di-
rectors. and George T. Dunlop. the COM
pany's general counsel; William F
Ham, president of the Washington
Railway and Electric Co., and S. r
Bowen, vice president and general
counsel. The conference also was at
tended by Corporation Counsel Bride
and James L. Martin, who represented
Peoples Counsel Ralph B. Fleharty.
Believes Merger Vital.
The commission pointed out in a
statement issued at the close of the
meeting that it's action was predicated
solely in the interest of a merger of the
car companies. The statement read:
This commission has approved and
recommended to Congress a unification
agreement to which both the Capital
Traction Co. and the Washington Rail-
way and Electric Co. are parties, which
is now pending, and which will prob
ably be acted on at the session of Con-
gress now but five weeks away. The
commission believes that a merger is
vital to the interests of both companies
and to the people of the District of
Columbia, and that to enter an order
raising the rates at this time might
seriously interfere with favorable action
by Congress.
upon a full consideration the COM
mission, without passing upon or de-
termining any of the issues involved,
have reached the conclusion to dis
miss the application of the Capital
Traction Co. for an increase in fare,
without prejudice to the company's
right to renew its application at any
time subsequent to March S, 1929"
In subsequent statement the COM
mission explained that the companies
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