Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-07-20
TEN CENT CAR FARE
STARTS THIS WEEK;
APPEAL |SFORECAST
Courts Decree Will Establish
New Schedule of Rates
to Bolster Revenues.
OPPONENTS OF INCREASE
PLAN TO FIGHT RAISE
Retaliation May Be Ordered as
Additional Litigation Is Studied.
Effect Is Predicted.

Some time this week District street
car riders must start paying 10 cents
cash for their rides. A decision making
this certain was handed down in Dis
trict Supreme Court yesterday by JUS
tice Jennings Bailey. He upheld the
contention of the two Washington street
railway concerns that the present rates
are so low as to amount to confiscation
Of their property and granted their Pc
tition for the increase.
Justice Bailey, in his decision. gave
the companies choice OF selling tokens
at four for 80 cents, three for Is cents
or seven for so cents. The companies
decided to accept the four for -3O-cents
rate, and decree establishing the new
rates will be presented to the court
PROBABLY next Tuesday, with the rates
going into effect the next day or few
days after.
The present rate, which has been In
effect since March, 1922, is 8 cents cash
six tokens for 40 cents. The new rate
VIII involve the abolishing of the trans
Ter charges asked by the companies a,
some points for transfers between feed.
en- puSSes and street cars, and vice versa
since the result of the charges now Is
that patrons on those lines paw a tota]
OF 10 cents for their rides, the price OF
tnelr rides will remain unclaimed un-
der the new rates.
Appeal Is Planned.
Meanwhile, two lines of attack are
under consideration by those lighting h
Drlng the rates back down. The Public
UTILITIES Commission, which Is the arbi-
ter OF street car rates in the District ex-
cept when the courts take q hand, is
planning an appeal to the District
Court OF Appeals. Peoples Counsel
Richmond B. Keech plans to file a pc
tition with the commission asking for
complete revaluation of the properties
OF both the street railway companies.
Neither OF these courses will have the
effect OF producing any change in the
rates Tor many months to come, IL then
Mr.. Keech'S proposition for o new
valuation Is based on the finding by the
court that the two companies are worth
$44,9S9,582 in valuation for rate-makine
purposes. Based on this valuation, the
present returns Of the companies are
admittedly below the level of q reason
able return" on fair value. But If he
can show that the valuation is excessive
he would then be in a position to de-
mand lower fares. A revaluation would
probably need 18 months to two years
to accomplish, with the prospects of a
long court fight at the end of that.
A motion for revaluation was made
during the proceedings before the COM
mission by William NICK. Clayton,
counsel for the Federation of Citizens
Associations. The motion was not dis
posed of. and is still open for action.
Mr.. Keech may urge action on this mo-
ton. or introduce q separate petition
for a revaluation.
Justice Bailey's decision reviews the
history of the street car legislation back
to the time of their first valuations, in
1914. He recalls that their petition for
increased rates In 1927 was dismissed
without prejudice on account of the
tendency of merger legislation, and how
1t was reintroduced when the merger
legislation failed.
Awaited Committee Action.
Merger legislation was again intro
duced in the last session of Congress,
and on the day that the House District
Committee finally killed 1t by voting for
indefinite postponement, the company
lawyers were waiting in Justice Baileys
court to begin the argument on their
second petition.
Justice Bailey points out that while
the Utilities Commission claimed that
1t was not satisfied with the figures
presented by the companies as to their
valuation, it failed to order a revalu-
alton, which it had the power to do.
Continued on Page 2, Column a.