Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-13

Companies Make No Comment.
No comment was Forthcoming from
either Of the petitioning companies as
to the opinion today. The board Of
directors Of the Capital Traction Co.
will consider the matter at its regular
meeting at 10:30 o'clock tomorrow.
President John H. Hanna of the COM
pany said that statement would be
forthcoming after the meeting.
Vice President 8. r. Bowen Of the
Washington Railway 4 Electric Co. said
not had time yet to digest kaae opinion,
He said that the matter would normally
come UP at the regular meeting c1 the
board Of directors November az, but
that it was possible that the executive
committee Of the board would call .
special meeting earlier to give the mat.
ter consideration. He said that 9
decision would probably be reached
tomorrow.
The commission summarized Its find-
ing of facts under seven heads, as
follows:
(D There is no valuation, as Of to-
day, on the properties Of the two street
railway companies, ano. therefore, no
rate bases upon which to determine
either the return now earned or that
which would be earned II the increased
fare is granted.
Differences in Accounting.
(2) Wide differences in accounting
methods used by the two companies ana
certain errors in the accounting records
disclosed by the evidence render 1t I'M
possible to ascertain with the necessary
degree of certainty the actual operating
expenses or the net railway operating
income of the companies. .
foN rYt1a aviSay1Ra az the rate nj
return which would be produced by the
proposed increased fares Is conJect1ral.
"a The commission has the right
and it is its duty to insist that the
companies effect all reasonably possible
operating economies before authorizing
them to swell their gross revenues by
exacting higher fares from the street
car riders.
(5) The commission has the power
to compel the companies to make joint
use of each others tracks and facilities.
This might result in lesser cost Of oper-
alton and in q measure bring about the
relief sought by means of higher fares.
without the whole-hearted cooperation
of the companies, the fun possibilities OF
such a forced unification of operations
could not be realized. and, therefore,
this procedure might result in little or
even no improvement In existing con-
ditions.
Merger Would Aid Service.
(6) A corporate merger now autho-
rized by law, would substitute unified
for dual control of street railway opera
tions in this city, would better the street
car service, and would undoubtedly
bring about economies, which, with the
present rate of fare, would probably put
the new merged company in better con-
dition financially than that of the two
separate companies II they are granted
the increased fare and If their eXpecta-
tions of its monetary results are fully
realized.
CD Under such circumstances the
commission is not justified in compel
ling the street car riders of this city TO
pay nearly 81 100000 more per year for
the benefit of the two competing street
railway companies.
In holding that no adequate showing
Of the valuation of the companies as
Of the date OF the petition for relief
had been made, the commission said:
Entitled to Reasonable Return.
"a public utility is entitled to rea-
sonable return upon the fair value Of its
used and useful in the public
service. However. the determination of
whether or not specific fares are con-
1scatory must be made upon the basis
0f the fair value of the properties at
the time of the inquiry. CHere sew
.ral cases were quoted In support of the
ioctrine). 1t is not suficient for these
purposes to set up a fair value deter
mined at some time in the past and add
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