Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-08-16

Hanna replied that the company nau
made a number of Improvements In
that respect.
Saws Curves More Expensive.
"Does a large number of curves add
to the expense of operatlon?" asked
Mr.. Clayton.
Mr.. Hanna answered in the aff1rma-
tive, saying that curves in tracks cost
more in the first place, caused more
wear, used more power and were gen
orally more expensive to maintain. Mr..
CLAYTON then referred to the tracks
in the vicinity of Fourteenth street
and New York avenue, where there are
a large number of turns, and asked
whether the Capital Traction Co. had
ever considered making any changes
there.
When Mr.. Hanna admitted that the
question of changing tracks IN that VI
entity had been considered. Mr.. Clay
ton asked: Would rerouting your cars
avenue over the tracks now used by the
Washington Railway and Electric Co.
be deSirable?"
Mr.. Hanna said such a change might
be an improvement under uniflcatlon
of the street car properties, but that IT
would not be helpful under separate
operation.
About so per cent of the passengers
coming south on Fourteenth street go
westward at Fifteenth street. Mr.. Hanna
declared, and he therefore held that 1t
would not be beneficial to reroute the
Capital Traction Co. cars down Four
teenth street to Pennsylvania avenue.
He thought that would add to the con-
2estion in the busy part OF the city, eS-
pecially since the traffic on the Wash
ington Railway g. Electric tracks pc
tween New York avenue and PennSyl-
vania avenue. and especially between
New York avenue and F street. Is now
very heavy.
Not Prepared for Changes.
Referring to Mr. Hanna's statement
that possible changes in tracks had been
considered, Mr.. Clayton asked:
rs your company now prepared to
make any cha1-:ss->'"
1T is not" replied Mr.. Hanna.
would you make them II the COM
nanies were merged?" asked Mr.. Clay
ton. ,,
Yes" answered Mr.. Hanna. Then
changes could be made that would UNI
doubtedly be an improvement"
DO you believe merger will take
place." asked Mr.. Clayton.
If it had not been for you. unlnca-
ton would not have been held up Tor
such long time" sharply rejoined Mr..
Hanna.
"Then it is up to me to make good"
snapped back Mr.. Clayton.
Just when it looked as if the attorney
for the Federation of Citizens Assocla-
ton and the Capital Traction chief
we're on the point of getting into Bit
ter controversy over the merger ques-
lion, Commissioner Hartman interfered.
ordering that Mr.. Hannas statement
bout Mr.. Clayton having held up the
merger plan be stricken from the record.
Mr. Clayton next asked why, when
he Washington Rapid, Transit Bus Co,
asked for a 10-cent. fare. the Capital
Traction Co. did not intervene. Mr..
Hanna replied that bus traffic and street
car traffic were not the same thing.
Quizzed on Effect of Rates.
Questioned about the effect of differ
ent rates of fare on the two street car
lines. Mr.. Hanna said: I'VE have
taken the position that street car fares
should be uniform. If they were not.
one line would suffer financially because
L received a less fare, and the other
inc would suffer because of inability to
lake care of the increased traffic. The
net result would be that the public
would suffer"
Mr.. Clayton wanted to know what the
Capital Traction Co. would do, for in
stance, if the Washington Railway &
Electric Co. had its fares reduced.
You stand for uniform fares" de-
clared Mr.. Clayton. Would you ask to
have your fares cut if those Of the other
company were cut?"
NO" answered Mr.. Hanna promptly.
Then it works only one way-in the
case of fare increases, doesn't it?" de-
manded Mr.. Clayton.
CO. ~
and into an argument?" interjected
Commissioner Hartman.
Yes. We are" admitted Mr.. Clayton.
Continuing his testimony Mr.. Hanna
said that ever since 1925 sums of money
had been taken out of surplus and
added to earnings to meet the per
cent dividends paid since 1924. The
sums taken out, he said, were 1925.
$51, 534; 1925, $37,137; 1927, $132,546,
and 1928. $219,594. In 1924, he said,
the company earned more than per
Dunlop Objects to Questions.
Mr.. Hanna said that the per cent
dividend had been continued until the
quarterly payment made on July /,
but declined to prophesy whether any
reduction would be made in the future.
Mr.. Dunlop objected to questions by Mr..
Clayton on this line, but Mr. Clayton
said that there was another method of
supplying funds for the company than
an increase in the carfare, and that he
was endeavoring to show that the
difference between the dividend earned
and the dividend paid had been made
up from surplus. He then sought to
learn what the results would have been
II during the years in question divi-
dends of less than per cent had been
paid, but Commissioner Hartman ruled
that this could be learned from simple
arithmetical computation based on
figures already in the record and over
ruled the objection.
rs your financial condition sound?"
asked Mr.. Clayton.
Yes"
do you have knowledge of any COM
pany paying per cent on its stockP"
L have no knowledge whether there
are or not.
This could not of itself be taken as
an indication of their financial sound
ness"
Does the dividends the company
yes"
do you contemplate at this time
any further issuance Of stocks or
bonds?"
No
rs there an immediate need for
money for reflnancing your company?"
Asked About Basis for Increase.
cit isn't on that basis that we are
asking for it,
"On what basis are you asking for an
increase in fare?"
"On the basis that we are not earn
ing a reasonable return upon our fair
value
was there any agreement between
YOU and the Washington Railway &
Electric Co. before you filed this pc
tition?"