The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1929-08-07
PRECEDENT
|SSET FOR
TEARING

The Public Utilities Commits
sion today made it clear that
il intends to waste no time in
effecting economies in the
operations Of the two street
car companies, now before it
asking for increased fares.
Completely departing from the
procedure Of It's predecessor. the
new commission today announced
that ii win hold 4 public heasing
Monday on the extension of the
Burleith bus line; reroutiIig the
Woodley Road bus line and redtics
tion of the large deficit in the opera
tion-of the Cleveland Park line.
Part OF Fare Hearing
The hearing will be Incorporated
with, and made a part Of the record
suf the hearings on the application
0f the Capital Traction Company.
and the Washington Railway and
Electric Company for increases In
their present rates Of fare.
After these questions have been
argued the commission win con-
tinue with the fare hearing.
Plans to reroute the WOodley bus
line OFF Woodley Road and onto
Cathedral avenue, between Twenty
seventh Street and Connecticut Ave.
nut. win be studied by the Commits
sion.
Precedent Is Set
The Cleveland Park lire, on which
fare OF Is cents Is charged. lost
approximately $40 900 last year, and
the commission will seek to cut
down this deficit,
incorporation OF these questions
with the fare hearings Is COM
plete departure from the practice Of
past commissions. When the sire st
car companies came asking for
higher fares, the commission an
noulced Ct would make an ex-
haustfpe study with the view to de-
termine IL the traction companies
could not be operated more ecOno-
mically.
John HI. Hanna, president Of the
Capital Traction Company, was on
the witness stand when the fare
hearing started this morning. He
launched into an explanation of the
operating expenses of the traction
company, explaining that they were
80 high the company was unable to
make q fair return on the money 1t
has invested.
Asks Labor Costs
Commissioner Hareligh Fl. Hart
man reached for the little block
book and Immediately started
shooting series of questions at
Hanna. Every statement Hanna
made brought d request for a sur-
Their explanation.
A the hearing progressed Hart
man fired q series Of highly tech.
meal questions at Hanna designed
10 show what part the cost OF labor
plays in the operating expenses Of
the company, and how much that
cost has varied since 1919
Quizzed BY FTeharty
Ralph b. Fleharty, peoples
counsel. endeayorefl to develop the
fact that the Capital Traction Com
pany is satisfied with an income Of
Az per cent on its investment in
securities, but is seeking q per
cent return on value.
F'leharty in his crOss-exannination
u Hanna asked il the company was
seeking an increased fare for the
purpose OF a fair return or for the
purpose Of continuing payment Of
per cent dividend.
The traction head was emphatic
In his reply that the company is
seeking an increase to come some
where near q fair return on valde.
Track Costs Fall
In regard TO return on company
investments Hanna explained that
such investments have to be in
securities which are ready market.
able at face value He also ex-
blamed that many securities give.
ing q higher rate of return are
not the kind which would be a safe
Investment of company funds.
II