Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-09-03
TRACTION FIRMS
LOSS 20 PER CENT,
EXPERTS DECLARE
Analyses of Accounts Show
Company Included Tokens
Sold at Old Rate.
POINT OUT DEFICIENCIES
PRECEDED FARE RAISE
Benefits of Higher Rate Pointed To
on Basis of May and June
Revenues.

Public utility experts, who made a
cursory analysis today of the Capital
Traction Co.'s accounts for July, SUBJ
mitted yesterday to the Public Utilities
Commission, estimated that while the
report showed decline of rs per cent
In net income as compared with July,
1929, the actual loss was about so per
cent The difference is represented in
an item of $6,395.09 which the company
| included among its losses for tokens sold
| at the former rate of ga cents and were
outstanding when the new rate of Tx
cents went into effect July %.
Theoretically, this is a book loss,
which, 1t was said, could have been
spread over period of several months,
but the company chose to put it in the
July accounts. with the result that it
added about % per cent to the decline
in net income.
The company,s report showed that its
income for July was $22 ,567.57, a de-
Grease of $17,631.97 under the corre-
spending month of 1929 The loss in
passengers amounted to 414.840.
Losses in Previous Month.
AS the new rate of fare went into
effect in July, there has been a tend
ency to blame some Of the decrease on
the higher fares, but the experts point
out that the losses were steady in the
months preceding the increased fare.
For instance, an examination of the
monthly reports showed loss of 337 SIT
passengers in May of this year, in COM
parison with the same month of 1929,
and loss of 312,729 in June of this
year in comparison with the correspond
ing month of last year.
Lot. A1aa4
revenue passengers have not been drop
ping off at an alarming rate because of
the higher fare, although it is impoS-
sible to determine at this time the
actual effect due to the increased fare,
which was operative only for the last
eight days of July. The August reports
Of the car companies, it was said, would
furnish more accurate gauge of the
effect OF the higher fare.
Increase Benefits Companies.
The increased fare, however, has
Injured to the benefit of the car COM
panieS, according to the utility experts,
on the basis of revenues for May and
June. In May, with a loss of 337 ,677
passengers, it was pointed out, the net
income was $23,309.48, under that Of
the same month of 1929, and in June
it was $21,87 under that of June last
year, whereas the net incomeain July,
with loss of Ala, $40 passengers, under
the same month of 1929, was SIT ,631 81.
The car companies have blamed some
of the loss in revenue passengers to the
competition Of the unregulated taxi cabs
which have been offering a f1at-rate
cheap service since March. At the
Public Utilities Commission, it has been
impossible to determine how many car
| riders have been taken away by the cabs
because some OF the cab operators have
not submitted reports on the result of
their operations.
Those cabs which have made reports
failed to show the number of passen-
gers carried, but listed the number of
| trips. In most instances, 1t was ex-
planned, the cabs carry more than one
passenger on trip, making check-up
virtually impossible.
Cabs Losing Money.
NThe commission knows, from the re-
ports that have been submitted, that
majority of the cabs operating on a
cheap rate are losing money. Out of
total of 354 reports analysed, it was
found that every operator showed a loss
for the month of July.
The only complete report received
by the commission on taXicab opera
tons was submitted by the Nickel Cab
Co., which Is operating on a meter
basis OF 5 cents every third OF mile.
This company reported a net loss of
$l,56494 in July.
The revenue from transportation was
listed by this company at $3,7l3.87.
The total expenses of operation was
placed at $5,278.81. The company's
cabs made 1879 trips.
In the case of most of the 35-cent
fat rate cabs, 1t was said at the COM
mission that the drivers were making
individual returns, with the result it
has not been possible to determine the
earnings or losses of the companies
operating them. In some of these cases,
it was said, it Is possible for sthe driver
to suffer loss, while the operator is
making a profit because the cabs are
rented to the drivers.