Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-04-10
KEECH PREPARES
TOF|GHT AGAINST
INCREASED FARES
Peoples Counsel Is Making
Intensive Study of Efforts
of Traction Firms.
HEARINGS ON APPEAL
ARE SET FOR MAY IL
Public Utilities General Counsel
Will Join in Opposing
Higher Rates.

An intensive study Of the history OF
the futile efforts of Washington's two
street railway companies to get the Pub
lie Utilities Commission to sanction an
increase In fares has been undertaken
by Peoples Counsel Richmond 3.
Keech in preparation for the impending
fight in the District Supreme Court
where the companies have carried the
case on an appeal.
Keech with the aid Of his assistant,
James l.. Martin, Is going over the
2,382-page transcript of the hearings
before the commission last year on the
application OF the companies for Q
higher fare, culling out every bit Of in
formation that may be of value when
he appears in court to oppose q fare
increase.
Hearing Set for May IL.
The date for the hearing on the ap-
peal of the companies was set for May
IL after a series Of preliminary legal
maneuvers during which the path was
cleared for the court to hear direct
arguments on the merits of the case.
In these earlier proceedings the court
overruled a motion Of the commission to
dismiss the appeal Of the companies
and later denied an injunction sought
by the companies which would have
given them q l0-cent fare pending dis
position of the appeal.
Vernon L. West, the commissions
general counsel, will unite with Keech
In opposing the granting Of y higher
fare. The gound on which they will
base their fight, has not yet been de-
termined, however. Keech indicated
that the problem Is to determine, by q
study of the record of the case before
the commission, what additional evt-
dence, II any, should be submitted.
To Analyze Valuation.
Keech plans to analyze thoroughly
the valuation claims of the two COM
panies which were the principal factors
involved in their contention of right
to q higher fare. The Capital Traction
Company claimed fair value Of $26,-
$50, IA, while the Washington Railway
g. Electric Co. said its minimum
value for rate making purposes amount
ed to 919,210,899. Both insisted that
the rate of return upon their respec-
tive values is less than the reasonable
return to which they are entitled under
the law. The commission, however, de-
clared that errors In accounting rem
dered ineXact the values claimed by the
two companies.
On the basis of It's claimed valuation,
the Capital Traction Co. said its return
in 1926 amounted to 400 per cent; in
1927 to 392, and in 1928 3.64. The
Washington Railway g. Electric Co.
placed its return for the same year at
3.99 for 1925; Alb for 1927, and 49,
in 1928. The fare increase sought
would increase the Capital Traction
Co.'S rate Of return to 4.8S, and the
Washington Railway & Electric Co.
to 6.25.
The application Of the companies for
financial relief asked for 10-cent cash
fare and a token rate of four for 80
cents. It was denied by the commits
sion after hearings which lasted from
July 20 to october z, on the ground
that the evidence submitted by the
companies failed to support basis for
financial determination of all issues in
volved. The commission, however, left
the case open for the taking Of adj
ditional testimony with respect to GER
tain features, but the companies turned
to the court for long sought relief.