Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-06-23
Holds Capital Traction Can
Pay 7 Per Cent Several
Years From Surplus.
RECORDS SHOW TRAFFIC
DROPS AS RATE RISES
Peoples Counsel Awaits Return Of
Questionnaires Before Decision
on Revaluation.

Preparations for a vigorous fight
against the Capital Traction Co.'s latest
plea for o fare increase were started
yesterday by Ralph B. Fleharty. peoples
co6nsel before the Public Utilities Com
mission, and his assistant, James L.
Mettin.
Although Fleharty and Martin have
noe definitely mapped out course Of
action, the former indicated that it
would be substantially similar to that
Of last Summer when the commission
i1AId under consideration the companyis
original application for higher fare
which it later Withdrew to avoid
jeDpardizing the transit merger agree
ment.
Month to Perfect Case.
The peoples counsel has more than
month to perfect his case, since the
commission at his request has deferred
the public hearing on the car fare ap-
plscation until July 20, but he is de-
sifous Of completing it before that date.
For that reason, particularly. he hopes
the civic organizations will respond
early to his recent QUESTIONABLE on the
traction situation.
The questionnaires were sent out
early last week, but none has yet been
returned. He did not even receive the
report prepared for him by Capt. Ray
mond G. Klotz, engineer Of the Utili-
ttse Commission, who was removed
from ONCE for writing 1t.
TWN nfYtaka v1AiY10a rs0f1fe Pfy 10
expected to raise In objection to an
increased fare are that the Capital
Traction Co. Is not In q poyerty-stricken
condition since Its cash surplus amount
ing to more than 81 600 900 win con-
tinue to pay stock dividends for three
or four years to come, and that the
higher fare likely win not increase the
company's net operating income since
II win result IN . material falling on
In revenue passengers. Records In the
Utilities Commission show that fare
raises In the past we're followed with
q drop Of about Is per cent In business.
ReyaIuation Puzzles.
The question of q reyaluation Is one
which Is puzzling the peoples counsel
He said he had not decided whether
to request the commission to make a
new inventory at the forthcoming
hearing, although he believes that both
tAAC Nhpib6k 4IACCtuil 1IlQ LklS wash
ington Railway & Electric Cos. should
be Teyalued sooner or later"
II expect some of the civic organiza-
tions to which questionnaires have been
sent VIII request me to 1lle with the
commission petition to revalue the
companies before change In the rate
Of fare" he said. until I hear from
them, however, win not reach q deci-
sion on the question Of revaluation."
Fleharty already has made rather
comprehensive study of the financial
condition of the Capital Traction Co.
and said he found it In fairly pros
porous condition. THE company" he
declared has not failed to pay z
per cent dividend on its stock since this
rate was fixed back in 1921. It is true
that the surplus of the company has
been dipped into for that purpose, but
this fund on December 81. 1929.
amounted to $1,000, 1877"
A report prepared by Martin for
Fleharty's study showed that the COM
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