Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-03-22
Period for Unchanged Rate
Would Be Cut to One Year
Under Amendment.
GEN. PATRICK is QUIZZED
ON TWO-YEAR CLAUSE
Says Commission Prefers Original
Plan to Establish Results
of Merger.

Acting Chairman Mcleod of the
House District committee, announced at
hearing on the street railway merger
proposal today that he would offer an
amendment reducing to one year the
proposed two-year period during which
the street car fares would remain I'M
changed after the merger on condition
that the companies would agree to free
transportation for school children.
Richmond B. Keech, peoples coun-
sci for the District, recommended an
amendment which would write into the
permisSive legislation requirement that
school children be carried to and from
school for half rate fare to be re-
duced later at the discretion Of the
Public Utilities Commission.
Most of the time of the hearing to-
day, which was attended by officials Of
the companies concerned and Of other
public utilities and by the Public Utili-
ties Commission and representatives OF
the legal departments of the District,
was confined principally to discussion
of the two-year clause. Acting Chair
man Mcleod questioned Gen. Mason
M Patrick, chairman of the Public
Utilities Commission, where this clause
originated.
Traced to MaItby Report.
He was told that the Public Utilities
Commission assumes responsibility for
all provisions in the permiSSive legisla-
ton, but explained that this particular
provision is a development out of the
Maltby report to the Senate committee.
He estimated that the net operating
revenues of the merged company would
be q million dollars greater than at
present, but said that the valuation of
the new company must be made as a
basis for fixing new rate of fare and
this would require at least year and
probably ID months. In the meantime,
he estimates that the merged company
would Immediately have a net saving of
$3.50. 900, so that he felt the companies
would be willing to continue at the
same rate of fare for two years rather
than to forego a chance to affect a
merger.
In reply to questions, Gen. Patrick
said that the one-year period, which the
Public Utilities Commission was agree
able to a year ago, was predicated on
fixed rate base. and that the two-year
period now proposed is based on the
necessity for revaluation Of the merged
company.
In reply to questions by Representa-
tive Mcleod of Michigan and Repre-
sentative Bowman of West Virginia, who
asked if the Public Utilities Commission
would be willing to accept a one-year
clause instead of a two-year clause in
order to bring about the merger, Gen.
Patrick said that whatever Congress
saw At to do would be acceptable to the
Public Utilities Commission, but that
the Commission would much prefer the
two-year period to establish more def
nitely what the results of the merger
would be, following which it could
determine better an equitable rate of
fare which would be just to both the
people and to the merged company.
Puts Loss at $4,000.
IF the companies agree not to ask
for an increase in fare for one wear and
offer to give free fares to the school
children, do you not believe that the
people of the District would really be
gaining more than by waiting for the
tWo-year period before a new rate of
fare is determined?" Gen. Patrick was
asked. He explained that according to
the best calculations the street railway
companies would suffer loss in revenue
OF $4,000 through establishment of
free fares for school children, and that
in addition they would be put to a con-
Siderably greater expense to provide
transportation for the increased humber
of children who would ride. He believed
that in fairness to the street railway
companies they should be granted some
offset on account of any agreement
they might make regarding this loss in
revenue and additional expense.
John j. Noonan, former stakeholder
In one of the street railway companies,
who has been waging an individual
campaign for free fares for school chill
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