Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-25
TRACTION COMPANY
.ASSA|LS PROPOSAL
FOR CUT IN FARES
Declares Charge Recent
Boost Has Caused Revenue
Loss Is Not Justified.
ZONE RATE SUGGESTIONS
VALUE Is MINIMIZED
Blame for Failure Of Merger Plan
Laid to Utilities Commission
in Singing Reply.

The Public Utilities Commissions sug-
gestion that street car companies con-
slider . reduction, In fares IN order to
stimulate business and that the COM
panies reconsider the merger proposal,
met with 3 singing reply today In q
statement issued by the Capital Trac-
ton Co.
Declaring there Is no justification for
any suggestion. that the increased fare
has caused loss in revenue Of the COM
pany, the statement declared that, on
the other hand, had not the fare been
increased the company would have
lost at the rate Of $200, 900 per year.
The statement also declared the COM
pany In favor of unification Of local
street car companies and blamed the
commission for defeating the proposed
merger In Congress.
Student Loss Held $1,000 Weekly.
The company also declared that un-
der the new Scent student fare II Is
losing approximately $4,000 per week.
The commissions suggestions, to
which the statement made reply, were
contained in letter sent out Monday
In response to petition Of the street
car companies for higher fares TO onset
the loss occastoned by the 3-cent student
fare.
The statement, in part, follows:
There Is absolutely no justification
for any statement or suggestion that the
increased rate Of fare made effective
last July has caused q reduction In our
revenues. On the contrary, the in
creased fare saved the company from
a very serious situation.
Improvement Held Shown.
'"The frst six full months Of the M
creased fare beginning August, 1880,
showed, as the commission stated, re-
duction in revenues as compared with
at the rate OF $AT,294 per year. The
statement ignores the fact that the
company'g revenues for the last four fun
months of the old fare, that IS March.
April, May and June Of 1880. decreased
$50, 300 as compared with the same
period of the previous year. That is at
the rate of $252,OO0 per year, 50 that
the increase in fare caused an improve
ment In the company's revenues 20 the
amount Of at least 5000, 900 per year.
The data given with reference TO de-
crease IN IidAng IN 6altlmoTe apparently
assume that this loss was due entirely
to an increase in the rate Of fare, en-
tirely ignoring the effects Of the indus
trial depression and the competition Of
cut-rate cabs, which have affected In Q
similar way the earnings Of every street
railway company in the country.
Other Cities Cited.
"a comparison Of the experience in
Baltimore and Detroit, both industrial
cities, Is interesting. In Detroit the
street railways are operated and owned
by the municipality. The rate Of fare
has been unchanged for several years
and IS cents cash with nine tickets for
so cents, much lower than most other
cities; while Baltimore has q nat To-
cent fare. Baltimore carried 1913 per
cent fewer passengers In 1880 than in
1929; Detroit's loss for the same period
was 21.6 per cent. Baltimore's revenue
loss was BAT per cent and Detroit's
was 20.6 per cent. Practically all other
cities IN the country show large losses
for 1880 whether fare changes have
taken place or not and there Is no jlstt-
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