Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-02-05
NEW CAR MERGER
PLAN IS PROPOSED
Rate Fixing. DecenniaI Val.
uations and s Per Cent
: Return Are Features.


Building last night but deferred &C
ton on il until the next meeting. in
the meantime directing that il ce print
co and copies sent 10 the delegations
II provides for laying down base rate
for the fixing of rates. includes pro-
vision for 6ecennial valuations, and q
SIX per cent return on the rate base.
The report OF the committee, sub
nniijed by William A. Roberts, vice
chairman OF the public utilities COM
mittee. says that the protracted ne
eotiauons negative the best interests
Of The District of Columbia, and
adds thai some OF the questions being
discussed BY the interests 10 obtain
favorable terms are unnecessary OF
determination prior 10 merger. 1t points
ont that a merger Of the two railway
companies ana the bus company Is m
clspenSable 10 the best interests % the
people OF the District.
Opposes Pay Raises.
The federation also voted against in
creaSss III pay for the police ana hre-
men. sent back 10 committee a report
providing for permanent commission
70 adjust the fiscal relations between
the municipal and Federal Govern
nlenis. adopted report of the school
committee recommending that a weeks
notice be given by the Board OF Eouca-
ton 10 citizens associations afecteo
by the proposed location OF school
sites. received report on the pro-
noseo smoke prevention law: further
approved the Fitzgerald and Capper
worku,en's compensation bills. and eX-
10
sic. 600 600 treasury loan for the pur-
chase OF parks and Fairgrounds for The
District
The report of the committee on public
utilities recommended that the pro-
posed consolidated transportation COM
pany be granted 8 preferential mo-
nopolv OF common carrier transporta-
ton in the city. 10 be contingent upon
acceptance Of proposed extensions OF
service within six months OF the APP
proyal OF such extensions by the Public
Utilities Commission. The committee
also recommended that upon agreement
o. the consolidated company 20 the
conditions as laid down in the fedora
ton plan for period OF so years II
be granted a franchise.
Terms of Merger.
laid down by the committee:
"tAb There shall be determined by
agreement OF the Public Utilities Com
mission Of the District Of Columbia and
the officers of a provisional consolidated
traction company. a rate base: agree
ment by the commission TO be upon a
sun determined by it after considera-
ton Of such data on the physical valu-
alton of the property owned and used
by The provisional consolidated COM
pany as are available at the time OF
agreement and consideration OF the
earnings OF the respective utilities dur
ing flve~year period prior to the de-
termination of the rate base and con-
sideration OF such other factors. includ-
ing condition OF the property and
sdap:ability for use in the consolidated
company as the commission shall see
fl. which II may lawfully consider
The commission shall after considera-
ton Of the above matters announce a
rate base. which. after hearing and
further consideration Of the evidence
in opposition there presented by all
psrties IN interest shall be adjusted in
the discretion Of the commission anc
become final
"fBD Upon acceptance OF this rate
, base by the provisional consolidated
company there shall be an ALLEGATION
Of its capitalization 70 the several con-
stitaent corporations 70 the amount OF
. the rate base.
"tC) To the rate base as above de-
terrined shall be added the mount Of
cash expenditures for additions and
betterments and there shall be deducted
therefroEa retirements al the cost OF the
property retired.
Id Al recurring periods OF 10 years
after the order Of the commission es-
"a nllthing the consolidated company be-
comes final there shall be a re-valua-
, ton Of It's property By the commission
. II accordance with the Law OF the land,
. unless the commission and the consoli-
Z dated company agree that the previous
~ established rate base modified as de-
: scribed in paragraph &C. hereof shall
. be fair and reasonable. in which case
the existing rate base shall continue
! for the next io-yeSr period except as
: modified in said paragraph co.
: "tEi Your coYnnlitte recommends
that there be established q rate o! re-
:uYn O! 6 per cent upon the rate base
as i1s fair annual return 70 the con-
Noiiozted company Tor the use OF It's
property. which may nevertheless be
naooahed annually in accordance with
the siding scale herein described
"(sp The base rate IN the sliding scale
shall be determined a. the mean Of
nose rates OF fare above which
patronage decreases and below which
patronage viii not increase as the re-
suit Of fare changes For the frs:
perioo Of 10 years this mean shall b.
scosrtec a. the weighted average Of
the present rateS Of fare IL effect on
tne several constituent corporations Of
the proposed cOf4SoilGztec company
THEREAFTER al Io-yeay intervals this
5slslc rate snaA De determined by the
eOgna. iSEiOn IN conjunction with It's
redetesnanatio3 Of the rate base. For
eacn cent Of cash fare charged by
t.ae oora1olldateo Company below the
mean or basic fare rate IL shall be per-
n1l,Dc " earn ] per cent IN excess Of
in> nasIc rate 0! return as herein
CsDc.ltec
10 Jhe rate 81 Dokfn fare shall
Way with ttle neS:eSt mutt G u ,
,eI.s ior watch I've czGh fare may be
3foc0Eec znc fof this amount the token
fare Ia sdoiLloD " tas number VI cash
fares contained therein must Le sold
~ When the earnings of the ON
Violated Company snail FEceed one
hsf OF ! PR cent St1DYe the current
rae VI return tfefe shall De ordered
5Y tne c9nnflsslof5 q reduction la 'he
tSSn fare " ] cent 2nd IL the fAH u
relirD for any annual pfrlod ~ iest
tnsp the base rate insn iu ffscct tha
rpnmiekaon sasll oTasr an increase III
fate In the sgfloatgt u ] CENT sJblet
y, ne following limitation That tHfTf
~ estzbia ,E3e6 Feo<rse fund Is 81
L'ygJyaU Gon3I1Jaec u net IeTen3lsA chi
flEo sDoys the tflen pTeScrlDsd rat.
~ return. accumulated win interest
which shall Ds available 10 aagmtn
Lel feYFn1eA ~ tie amount thai Tn
gtlUTn Il tsss lllaH tI4e current rate o.
Irt1fn UI.Efr CiIe siloiisg Scs.e 10 tni
amount tfASt this fund shall 81 sny tin1'
ezose6 81 900 900 II shall be ayai!sili
AHc shall Dr. preferred for ule con
a1FQct3Osl III ezLsnsID4s W the sHiAtin;
Inca upon winch no return shall h