Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-03-19
Hanna and Ham Have No
Objection to Reduced Rate
for School Children.
COMMISSION ASSAILED i
AT COMMITTEE HEARING
Executives Fight Present Plan of
Unifcation of Firms Pend
ing in House.

Higher fares rather than a reduction
might result from a merger of Wash
lngtons street railway companies, the
officials Of these lines told the House
District committee last night at hear
ing on the joint resolution to authorize
a unif1cation.
John H. Hanna, president of the Cap
ital Traction Co., and William F. Ham,
head Of the Washington Railway &
Electric Co., both declared that after
merger additional capital may be need
ed for expansion and equipment, which
would carry the fare higher than the
1O-cent rate the companies are now
seeking in the courts. Officials of the
Public Utilities Commission had previ-
ouSly contended that economies in op-
Grafton, together with a reduction in
overhead expenses growing out of a
merger, would lead to lower fares.
Ham and Hanna also revealed that
they would offer no opposition to q re-
duced fare for school children should
the commission order 1t in the absence
OF merger. They made this disclosure
IN response to questions by william
NICK. Clayton, counsel for the Fedora
ton Of Citizens Associations.
Doubts Authority.
There Is a provision in the Joint
resolution authorizing the merger, which
the committee has under consideration.
directing a reduced fare for school
children, but belief was expressed by
Harleigh H. Hartman, vice chairman Of
the commission, that the commission
now lacks the authority to order lower
fares for children.
Clayton first asked Ham about the
reduced fares, inquiring what he would
DO In the event the commission with
out the authority carried in the merger
resolution ordered half fare. In reply
Ham said ne would urge that it be put
INTO eject, even though he doubted the
wisdom OF such q plan. Later CLAYTON
asked the same question of Hanna and
got substantially the same answer.
The traction officials, however. con-
sinued their tight against the provision
In the merger resolution which would
keep the present rates of fare In force
Tor TWO years after unif1cation, as well
as the section limiting the appeals TO
De nad TO the courts from orders Of the
commission to questions Of law. Ham
and Hanna insisted that the componiea
would not merge If either of these two
provisions are left in the resolution.
AssaiIs Commission.
Ham also bitterly assailed the COM
mission for refusing to give his COM
pany higher fare This comnission -,
ne declared, refuses to Ak q rate that
VIII give q company a fair return on
the commissions own valuation. When
the company goes into court and gets
new valuation, the commission ir-
nores 1t. And now it sits idly by and
allows our property to be confiscated
ana VIII not even make new valuations.
IN 1922 when the car fares were
reduced to their present levels the two
companies were making between them
IN income available for q return On
1alr value, $2,800,000. In 1929 thew
made $1,600,000. And In the face Of
that the commission opposed an increase
IN our fare. Had been president Of
the Capital Traction Co. when that
company decided to ask for an in
creased fare would have asked fer a
higher fare than he did. Knowing all
TINS, do you imagine that as president
OF our own company I would recon-
mend to Our board of directors that
they go into this merger and sacrifice
Cneir rights to higher fares still two
more years?"
The committee viii resume hearings
on the merger resolution SATURDAY.
morning at 1880 o'clock. CLAYTON and
richmond 3. Keech, peoples counsel
70 the commission, are to be the princi-
pal witnesses.