Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-07-19
1O-CENT CAR FARE
APPROVED FOR D. c.
Utilities Commission to Ap'
peal DeCiSion-TokenS
Will Be Sold.
Continued From First Pagel

show the value at the date of the hear
ing and that the rate of fare in force
produced an entirely inadequate re-
turn upon the value of the propertie;
and sought to have the rate of fare fixec
at 10 cents cash, or 4 tokens for sc
cents.
THE commission held that the fare
value of the properties could not be
determined save by a new valuation,
that there was no valuation upon which
rate of fare could be fixed: that dif-
ferences in the accounting methods OF
the two companies and certain errors
rendered it impossible to ascertain with
a necessary degree of certainty the
actual operating expenses of the COM
panies, and that the evidence OF the
result of the proposed increase IN RATE
of fare was conjectural. The commits
sion left the proceeding open Ior tur-
ther testimony, but denied the request
for increase in fare. A motion had
been made for a revaluation OF the
property, but no action was taken on
this motion. The railways have APP
pealed to this court.
Question of Return.
"This is not a proceeding for the val
nation of the properties of the railways,
and the question of value involved is
only important upon the question OF the
rate of return upon the properties. H.
then. it should appear that allowing LOT
any errors on the part of the compa-
MES the rate of return under the pres.
ent rate of fare is conflscatory, as paSeo
upon what the evidence shows 10 pe tne
minimum value of the properties, the
errors and overvaluations may be ais
regarded. While the commission APP
narently thought an entirely new Valla-
fion should be made, it took no steps
to have it done. 1t has the autnorlty
tn order one made, but II ola not 40
so and failed to act upon the motloh
for that purpose. / think that tneSe
valuations are intended as STANDARDS
and bases upon which subsequent val
nations can be made, taxing INTO COLI
sideration subsequent changes, cerCailly
for a reasonable time, unless sutfclent
cause be shown for a new valuation
But here none was ordered:
'Takinp the valuation OF the Capildi
TRACTION Co. fixed by the Court OF APP
meals as of January /, 1925, and the
testimony as to net additions since tnat
time. and excluding those items WIllcn
the commission claims should not De
allowed, the value OF the propeIIle5So zoo %
that company as of December 81, 1873,
would be SOS, 728,683 The income, COM
n,,ted in the same manner, was 500
1851. a return of 3.57 per cent OF TINS
valuation.
Claim of Company.
"As to the Washington Railway d
Electric Co., the company claims ti Ina.
there should be added to the valuation
Of June 80. 1919, $16,106,368.14, the sum
Of 81. 98e, 9OS IS. which, with certain de-
auctions. would total $19,2l0,899. 49,
That there have been net additlons
there is no doubt, but taking the COM
missions valuation of December 81,
1921. $I7,236, 40958, the income for the
wear 1928, $S16,19643, would produce
return Of 4.73 per cent on this Valu-
alton.
'sThe present rate of fare therefore
furnishes a return which is clearly in
ADEQUATE. The commission makes no
real question but that the railways are
well kept UP and economically managed
No merger can be had without the con-
sent of Congress.
1.-The public is interested in the
proper maintenance and operation OF
the railways and the owners are en-
titled to a reasonable return. An m
crease in rate of fare is in my opinion
necessary for these objects.
THE commission objects that the
amount of income from an increase in
rate would be speculative. This is
necessarily true, but such an objection
would prevent an increase in rate at
any time. Under the proposed new
fare of 10 cents cash or four tokens
for so cents, it is reasonable to suppose
that the proportion of tokens sold VIII
be increased. the difference in the cost
of token and the cash fare being 2l2
cents, while under the present fare 1T
is only Ia cents.
Percentage of Tokens.
'If as estimated by the railway, IS
per cent of the passengers will buy
tokens under the new rate. If the num-
Der of passengers remains the same,
would on the minimum valuation of the
Capital Traction Co. furnish return
of 495 per cent and on that of the
Washington Railway & Electric Co.
6.e6 per cent. OF course, If the pro-
portion of tokens sold should turn out
tos be less. the increase in income ano
rate of return would be somewhat
greater. On the other hand, the m
crease in fare will undoubtedly cause
a decrease in the number of passengers.
I'm my opinion, the increased rate
of fare asked for, together with the
abolition of the charge for transfers,
VIII furnish a return that is certainly
not unreasonably high. 1t is true that
the return to the Washington Railway
81 Electric CO. will be higher than that
to the Capital Traction Co., but even
then it is below the rate frequently APP
proved by the courts as minimum.
That a difference In rates between the
two companies would be impracticable
is shown clearly by the reasons ad-
yanced by the commission In its order
No. 344 Of October 19, 1919.
THE appeal of the railways viii be
sustained and the increased rates OF
fare granted.
t"As to the motion for revaluation,
It appears that the commission has
under its consideration motion for
that purpose, and / do not think that
this court should act upon such mo-
ton primarily, unless it be necessary
for the determination of the matter
before it, and do not think that it is
necessary
IF the commission should order re-
valuation, as it unquestionably has the
power to do, it would have the power
also to pass upon the reasonableness OF
the rate of fare fixed by this court, in
view of the new values fixed by such
reyaluation.
THE right will be reserved, however,
to fix the price of tokens at three for
IS cents and at the same time an al
tentative TO the passenger Of buying Z
for so cents"
"a