Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-24
Peoples Counsel Praises
Letters Sent by Utilities
Commission to Two Lines.
SUGGESTIONS TO REDUCE
DEFICITS APPROVED
Presidents of Traction Corporations
Silent on Proposals Made in
Reply to Increase Plea.

D.
today lauded the suggestion sent out by
the Public Utilities Commission to the
street railway companies yesterday that
the companies try methods other than
increasing carfare in order to make
up their expected losses from the re-
duced fare for school children. Merger,
institution Of a zone fare, reduced fares
during non-rush hours, purchase of
new equipment were the suggestions
thrown out by the commission in a
letter which wound up: I'm other words,
the commission suggests that you should
attempt in every way possible to help
yourself before asking it of its own
motion to take steps to provide your
company with additional net revenue"
The presidents of the traction COM
pantes reserved comment on the letters
John H. Hanna of the Capital Traction
Co., said that this was too important
a subject on which to speak without
thoroughly studying the letter, and
promised that he would have a public
statement to make at a later time. Will
liam F. Ham of the Washington Rail-
way & Electric Co., said that he had no
statement to make. at this time, that he
had not read the l2tter, and that he
did not know whether he would make q
public statement on the matter later
Zone Fare Attracts Interest.
Mr. Keech was particularly interes ted
in the zone fare proposal of the COM
mission. On this subject the commits
Sion'S letters to the companies, which
were identical except as to certain
figures taken from the net earnings of
each company said: The putting into
effect of a somewhat reduced fare dur
ing non-ruSh hours, or possibly r. duced
zone fares, might attract a number of
riders, possibly sufficiently great to bring
about an improvement in your financial
condition"
THE street railways are undoubtedly
in an unhealthy condition" said Mr.
Keech, land any plan that might bring
back the riders alienated by higher
fares and other causes would be well
worth trying. The matter of making
the fare commensurate with the dis
lance travelled by y rider has found
favor in a number Of Jurisdictions.
Cleveland, for example, originally
started out with 2-cent fare for a
three-quarter mile haul in its business
and shopping district. Recently the
fare has been increased to cents, with
an increase in the distance to
mile. The result of this experiment has
been reported as most encouraging. The
reduction Of rate for the short haul has
a tendency to inStill in the people the
car riding habit, and not only does 1t
attract persons to the railway system
who would not otherwise make use of 1t,
but by a reasonable fare 1t has a tsnd-
ency to substantially relieve congestion
in central area by making it poor bust
ness for persons to bring their own cars
downtown, and likewise impractical for
low-priced taxicabs to function"
Answers Companies Letters.
The commissions letters were in re-
ply to letters sent by the companies
March asking that the commission,
of its own motion, take some action to
make up to them expected deficits from
the operation Of the bill calling for
reduced fares for school children. In
reply TO this the commission states that
there are as yet no facts available to
show what, If any, effect upon the COM
panies' revenues will be caused by the
children's rate. When such facts are
available, the letters state, the COM
panies will be in q position to apply to
the commission for a remedy
However" the letters continue, ain
seeking ways in which to improve your
financial condition If you should think
Of asking to be allowed to charge higher
adult fares your attention is called to
thesfact that in June, 1929, you applied
for authority to increase your street
railway fares and then estimated that
if this were done the increased gross
revenues would be $4O8, 30819 per year.
The commission declined to authorize
this increased fare. but you took the
matter to court and did secure court
decree putting these higher fares into
effect. During the six months begin
nj, he AVscf r.F wxv3tIa h.
higher fares in question, your revenues
from rail transportation show a de-
crease of $23,56713 in the case of the
Capital Traction Co. and $35.560.41 for
the Washington Railway g. Electric Co.
Had Suggested Merger.
more than a year ago the commits
sion did, of its own motion, suggest to
you method by which not only would
it have been possible to effect con-
siderable savings in operating expenses,
but which would have brought about
material improvement In street railway
transportation throughout the entire
city. This, the proposed merger Of the
two street railway systems, you opposed
vigorously and defeated.
THE commission still believes that
such a merger, even with lower fare
than the present, would bring about
decided improvement In the nnanclal
condition of the single operating COM
pany contrasted with the conditions of
the separate companies as at present
operated"
The commission also set April 10 as
the date of a public hearing on a re-
quest by the Washington Railway &
Electric Co. for permission to abandon
it Foxall Village-Potomac Heights
bus line. Citizens Of those sections have
protested against the proposed aban-
donment, which the company asks on
the ground that operation of the line
is causing loss Of more than $4,000
per annum.
A public hearing will be held tomor-
row on a petition of the Capital Trac-
ton Co. to substitute bus for car service
on r and G streets west of Seventeenth
street and to make certain changes in
schedules and transfer arrangements
based on the proposed new service.