Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-07-23
Utilities Group Attorney Is
Preparing Records to
Appeal Case.
RETALIATION NEEDED
TO OBTAIN REVERSAL
Reduction Necessary TO Prove In
come of Traction Firms "Unrea-
sonable" Almost Beyond Hope.

Washingtonians today for the first
time we're called upon to pay out dimes
for their street car rides. Thus the
fight Of the street car companies, be-
gun Is months ago, was eliminated.
The Public Utilities Commission.
which fought on the losing side, has set
tied back to period of watchful watt
ing. Its legal aide, Vernon l.. West OF
the corporation counsels office, is pre-
pairing a record of the case and brief
with which to argue an appeal from the
decision of the lower court. Peoples
Counsel Richmond B. Keech Is prepar-
ing motion asking the commission to
revalue the properties Of both street
car companies While there are no Of
fetal expressions on the subject, not
much is expected from either course.
Two Years Needed for Task.
The appeal will go to the same court
that in 1925 handed down a decision
that the Capital Traction Co. was
worth $25, 000, 000-a decision which led
indirectly TO the 10-cent fare. The
revaluation will take the better part OF
two years If the commission wants to
go through with it. Utility companies
are allowed to earn reasonable" re-
turn on their valuations.
In the case of the United Railways
Co. against the Maryland Public Serv-
ice Commission. the United States SUI
preme Court held that a return OF
616 per cent, earned by the Baltimore
street car concern, was unreaSOnably
low, and added that 1t was not pre-
pared to say that or per cent would
not also be too low. The percentages
earned by the Washington street car
concerns on what now are given as
their valuations are declared far below
such figures.
The theory behind revaluatiop Is that
the valuations might be drawn down
to a figure so low that the percentage
of return would be increased. This ID
a prodigiouS task In the case OF the
Capital Traction Co. an estimate was
put into the records Of the hearings on
their case before, the Public Utilities
Commission, showing that with the 10
cent fare in effect their earned return
would be 4.s8 per cent, based on value
of SIX, 080,1l4.72. In order to increase
this return to z per cent the valuation
must be sliced to S1S,193,153 In other
words, the result of the new valuation
in the case of the Capital Traction Co.
must be to slice OF $4,000 900 Tin round
figures before the company's return
would begin to border upon the "un-
reasonable" Not the most optimistic
of the Utilities Commissions experts,
who feel that the present valuation Is
too high, would expect any such result
from q new valuation.
Revenue Passengers Decreasing.
These figures were drawn up in the
Summer of 1929, before the present
wave Of cheap taxicab service had
flooded the streets. Since then revenue
passengers have been deserving the
street cars at a rapid rate. The first
six months Of the present year shows
reduction of 3,393.000 revenue pas
sengers over the same period In 1929.
The commission experts believe that
the result of the 10-cent fare win be
that even larger numbers of revenue
passengers will stay out of the street
cars. AS it is, the loss In revenue
trafdc has been virtually constant for
10 years in the face Of substantial
increase of population
The first figures that viii be avail
able for the comparison will be In the
monthly report of July operations fled
by each company next month. Tha
commission is awaiting them eagerly.
While street car fares are going up,
the general trend of utility prices here
is, down. The Washington Gas Light
Co. Is about to submit new schedule
calling for reduced rates. The last
change in the telephone rates was q s
per cent reduction. Electric rates hava
been reduced each year for six years.