Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-07-29
Car Fare Raise Hearing
Starts Before Public UtiIi-
ties Commission.
ATTEMPT TO SEPARATE
ECONOMY FR0BE FAILS
Companies Seek to Divide Rate Case
and Investigation of Joint Opera.
tion Results, but Lose Plea.

Marked by verbal clashes the open
hearing before the Public Utilities Com
mission on the request of the Capital
Traction Co. for higher fares n all
street car lines in Warrington started
in the board room of the District
Building today, and the first prelimi-
naries of offering testimony on behalf
of the petitioner were completed when
the hearing recessed at noon
Two clashes, both between Commits
sioner Hartman and G. Thomas Dun
lop. counsel for the petitioner, enlivened
the early stage of the proceedings. but
later they settled down to reading of
statements of preliminary evidence.
Separation Move Creates Clash.
The first move was an effort on the
part of Mr.. Dunlop to have the carfare
hearing separated from the investiga-
tion into the probable economies that
would result from joint operation and
reciprocal use of tracks by the two COM
panies. This move was Joined by S. r.
Bowen, counsel for the Washington
Rallwsy & Electric Co., but the COM
mission overruled the company's objec-
tionS and the investigation remains a
part of the case. 1t was this that led
to the first brush between Mr.. Hart
man and Mr.. Dunlop.
mfr. Hartman asked if Dunlop denied
that the commission had jurisdiction to
determine the reaSonablenesS of the
companys operating expenses. Dunlop
would not answer categorically and
several efforts to obtain direct answer
failed. Following this MIR. Hartman
sought to find out if the traction COM
pany would refuse an increase in fare
II the same increase were not granted
to the w. r. & E. Co. This led to
skirmish in which George E. Hamilton,
also counsel for the traction company.
Joined but it proved inconclusive. After
his question had not been answered
and Mr.. Hamilton said that it had.
Both Companies Seek Raises.
The fare sought by the Capital Trac-
ton Co.. which was joined by the Wash
ington Railway g. Electric Co.. is 10
cents cash and four tokens for 30 cents
The present rates are cents cash, six
tokens for 40 cents. Both companies
in their petitions stated that the in
crease was necessary, as under the pres
ent rates their return on their valua-
ticns is so low that it amounts to con-
fscation of their property without due
process of law.
At the end of the first morning ses-
sion Chairman Mason NJ. Patrick of
the commission announced that the
hearings would be held each week day,
except Saturday, from 10 am. until
midday and from to 4 pm.
Only about a dozen persons not OIL
rectly involved in the case were present
during the hearings this morning. DR..
George c. Havenner. president OF the
Federation of Citizens Associations, was
among this company. William NICK.
Clayton was present to represent the
interests of the federation.
Clayton Gets Into Fight.
He got into the picture early by OBJ
iecting to the Washington Railway dc
Electric Co. being made party to the
proceedings without previous public
hearing. but, accepting the fact that
the company was now party, he
moved to make the Washington Rapid
Transit Co. also party. This motion
was held in abeyance and will be ruled
upon later.
The Washington Railway & Electric
was represented by S. r. Bowen, its
vice president and counsel, and the
Capital Traction Co. by Hamilton d
Dunlop. Presidents John H. Hanna
and William F. Ham of the traction
and railway companies respectively,
also were present to testify, accom-
panied by staffs of minor officials from
the two companies.
Asks Evidence of Economies.
AS soon as the hearing opened Mr.
Dunlep entered an objection to the
order of the commission directing that
an investigation be made to determine
economies that might result from uni
fled operation of the street railway
companies, insofar as the commission
directs that such an investigation be
made a part of the rate case OF the
Capital Traction Co., which is now on
hearing before the commission"
In explanation of the objection, Mr..
Dunlop said that the application of
the Capital Traction Co. for an in
legal right to receive now a reasonable
return on its established fare value
unobscured by assumed future condi-
tions undetermined and problematical."
Mr.. Dunlop contended that the pro-
posed investigation of economies from
unified operations and any evidence
which might be offered based upon the
result of such an investigation would
be immaterial and irrelevant to the rate
question now before the commission,
since no unified operation of street rail-
way companies is now provided for by
law.
Says Application Has Basis.
"The application of the Capital Trac-
ton Co., for increased rates of fare now
pending before the commission" said
MIR. Dunlop, lis based on actual existing
conditions and failure Of that company
under existing rates of fare and exist
ing conditions to earn a reasonable re-
turn on the face value of its property
used and useful for street railway opera
tionS in the District of Columbia, and
no investigation purporting to show
savings, necessarily undetermined, hypo-
thetical and speculative, which might
be obtained through unified operation
has any bearing on conditions as
they now exist. and any evidence of
such hypothetical or speculative savings
would be irrelevant, incompetent and
to the matters and questions
to be considered under the petitions of
the Capital Traction Co., herein, and its
or consideration by the
would be in violation of the
legal rights of the Capital Traction
Co. to present reasonable return upon
its present fair value and to fair con-
sideration of the questions involved in
this application"
An investigation to dstermine pos
sible economies from unified operations.
(Continued on Page 8 Column Ii