Evening star., 1933-01-13
CAPITAL TRACTION
STUDIES ZONE FARE
TO REGAIN LOSSES
Annual Report Shows $685.
949 Drop in Revenues
During 1882.
DEPRESSION, TAxIS
AND AUTOS BLAMED
President Hanna Says Experiences
of Other Cities Have offered
No Solution.

The zone system OF 1areS ana re-
duced fares during non-rush hours Is
being studied by the Capital Traction
Co. with a view to recapturing some OF
the business lost to 20-cent taxicabs
and private automobiles, 1t was dis
closed today in the annual report of
John H. Hanna, president of the COM
pany.
The report showed that competition
of taxicabs and private automobiles,
coupled with depressed economic con-
ditions. was responsible for a reduction
of $616, 6,949.30, or 16.1 per cent, in the
company's revenues in 1882.
Studies of experiments in other
cities with reduced fares for short
haul riders, or for those riding during
off-peak hours, Mr. Hanna said, have
thus far failed to offer any encourage
ment which would justify similar
changes in the basic fare structure In
Washington. The studies are being
continued. however, his report declared.
with the hope that a suitable solution
will be offered. The proposed unifi-
cation of the car companies, Mr.. Hanna
pointed out, would greatly simplify such
change.
Keech for Zone System.
A zone system has long been advo-
Gated by Richmond B. Keech, people S
counsel, as one means of improving
street car business. William A. Rob-
erts, assistant corporation counsel, as
signed to public utilities, also has ad-
yocated similar experiments.
The Joint resolution authorizing q
merger. which now awaits the signature
of President Hoover, Mr.. Hanna said,
differs greatly from the original plan
of consolidation proposed by the COM
panies and approved by the Public
Utilities Commission. AS a result, the
companies will be required to draw up
new unification agreement. Negotia-
tions for the new agreement, according
to the report, will be undertaken I'M
mediately
Mr.. Hanna said he believed the
merger would not solve entirely the
problems of the transportation COM
panies, but would result 'in such econ
onies and will make possible such con-
structiye planning for the future that
the new company will be able to take
full advantage of improved business
conditions affecting our business, which
they are sure will follow"
Throughout the year." the report
continued, I'VE were IN competition
with hordes Of taxicabs operated under
conditions which, we are reliably IN
formed result in an average earning
to the operators of something less than
81 per day for 10 or more hours OF
work. The 20-cent taxi rate for rides
as much as three or four miles in length,
offers competition with our service
which Is very difficult to meet.
"The Public Utilities Commission Is
endeavoring to remedy this situation by
regulatory orders applying to taxicabs
It is greatly hampered, however, by
J lack of powers under existing law either
| to limit the number Of cabs in service
| or to require financial responsibility
| from their operators and owners. The
| Commissions order issued late In 1881
requiring meters on all taxicabs has
never become effective because the Dis
| trict appropriation act specifically pro-
vided that no money appropriated could
be used for carrying 1t out
Solution Is Predicted.
Despite the adverse conditions, Mr.
Hanna sounded an optimistic note fol-
the future by predicting an ultimate
| solution OF the problems facing the
| TRANSFORMATION companies in Washing
ton. Mass transportation Of passen-
gers" he declared, "is even more essen
| tial to urban life now than ever before
| The continued growth and prosperity
of Washington or any other city de-
pends upon the continuance Of adequate
transportation facilities.
Mot only must the service now fur
] rished be continued, but it must be i'm
proved and made more attractive to
the public, and must be extended to
meet the growing needs Of the territory
served. To do this by private capital
requires the cooperation Of all who
are interested in the city's growth"