Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-07-29


Mr.. Dunlop sai6. could only show that
savings might, in the opinion of some
persons, be brought about II certain
changes in routing are made. and would
not be based upon any actual known
fact"
Mr. Dunlop expressed the opinion
that in fixing fare rctes the commission
cannot legally take 20 consideration
estimated savings in operating expenses,
which might result in an increase OF net
earnings in the future, provided certain
routing changes are made, unless such
routing changes are actually made ef-
fective and the savings are IAN accom-
pliShed fact and definitely determined"
The commission cannot, pending
such determination, legally refuse or
delay granting the relief to which the
company is shown to be now entitled"
If the commission should deny the
relief to the street railways from an IN
creased fare or postpone action upon
that question because a prospective
increase in revenue might result in the
future from unified operation and OBJ
viate the necessity for an increased
fare, Mr.. Dunlop contended that ire
parable injury to the Capital Traction
Co would be worked and the result
would be confscation of the property
of the company" depriving it OF its
rights under the Constitution.
Mr.. Dunlop insisted that the commits
sion has no authority to consolidate the
proposed inquiry into economics from
a unified operation with the question
OF rate increase.
Hartman Asks Questions.
After NJ. Dunlop had completed the
reading of his objections to the order,
Commissioner Hartman asked, Docs the
company deny that the commission has
jurisdiction to determine the reason
ableness of its operating expenses"
we cannot answer that categori-
caIlv" Mr.. Dunlop replied.
Does the Capital Traction Co. take
the position" Mr.. Hartman continued
that irrespective of the reaSonablene5S
of its operating expenses, it is entitled
to fixed return on what may be Its
fixed valued"
NO" Mr.. Dunlop replied, but we
do say that speculation as to what
might happen under certain hypothet-
ical conditions has nothing to do with
our present right to earn fair return
on our adjudcated value
At this point S. r. Bowen, counsel
for the Washington Railways& Electric
Co, stated that he Joined the objections
of the Capital Traction Co. and intend
ed to make a statement at the proper
time. He said that his objections we're
based on grounds substantially similar
to those of the Capital Traction Co.
There was a brief conference and
then Gen. Patrick announced that the
company's objections were overruled
and the hearing would continue. Mr..
Dunlop then began his opening state
ment for the Capital Traction Co. by
quoting figures from the petition pend
ing to support the company's conten-
ton that it is not making a reasonable
return on its fare value. He said its
value as of December 81, 1923, was in
round figures. S26,080,000 and that its
income was steadily dwindling. In 1927.
he said, the company earned, applicable
to return on value, 81 OOl 900; IN 1873,
1898 OO5 and in the IL months ending
April 80, 1929, s9l3,812, and that these
figures represented, respectively, 387.
$50 and $50 percentage return on fare
value.
Company Pleads Relief.
Since most of these statements we're
In the company's petition which was
already a part of the record Mr.. Hart
man tried to get Mr.. Dunlop to con-
dense his statement to avoid making
too long a record Mr.. Dunlop closed
his statement shortly after, saying that
the income the company expected to
receive under the increased fare would
still not yield them reasonable return,
but that they were content to wait for
such return until transportation con-
ditions improved.
Mr.. Hartman then asked: would
the Capital Traction Co. accept this in
crease if it we're denied to the Wash
ington Railway & Electric Coz"
Mr.. Dunlop replied: Il am not pre-
pared to answer
Mr.. Hartman then asked him to
"confer with your clients and give me
an answer"
There was brief conference among
Mr. Dunlop. George E. Hamilton. chair |
man of the board of company directors, |
and John H. Hannah, the company's |
president.
Mr.. Dunlop then SAID: we are seek |