Evening star., 1937-06-24
SCENT FARE HELD
BLOW TO INCOME
Transit Company Official
Sees Earnings Cut by
$1,9O6,99O.

Fighting against uae proposal Of
the Federation Of Citizens Associa-
tions for a scent street car and bus
fare, the Capital Transit Co. has fig
ured the effect OF such a trial for
IL months would be reduction in
its earnings Of as much as 81 1,9O6, 800.
AS against this the company has
Informed the Public Utilities Com
mission that if it were allowed to
increase its token fare from four
for 80 cents to four for 35 cents it
would benefit by an increase in reve-
nue. amounting to $334,376.
j. E. Heberle, vice president and
controller Of the company, submitted
summation Of the company's CAL
culations late yesterday to show that
institution Of a scent fare would
greatly increase the number of pas
sengers, as claimed by the company,
but would also greatly increase the
company's operating expenses.
Row Over Materials and Supplies.
The entire morning session today
was occupied by contest over what
allowance the commission should
make for materials and supplies, as
part OF working capital, with G.
Thomas Dunlop, company attorney,
attempting to discredit recommen-
dation by Guy M. Carlon. commits
sion accountant, that the sum be not
less than $685. 900, nor more than
100000.
Dunlop was permitted to ask nu-
merous questions as to how Carlon ar
rived at his figures, although the wit
ness was put on the stand by Hlnman
D. Folsom, commission counsel. At one
point. when Folsom was asking Carlon
Dunlop inslstently demanded: Would
you mind letting me bring out the
ansWer?" Folsom retorted: This hap
pens to be my witness; you can cross
examine later"
In the wind-up Of the set-to it de-
veloped that the company claims the
allowance for materials and supplies
should be S396,7l4, SO that If Cartons
maximum figure Was accepted the COM
pany would be allowed more than It
claimed, and if his minimum was
agreed upon there would be a cut of
but S2l,7l4.
Commission Chairman Riley E Elgen
remarked he didn't see there was
much to fight about.
Clayton Witnesses Ready.
The fare issues will be joined probab-
ly before the end of the week, since
William NICK Clayton, veteran chair
man OF the Public Utilities Committee
OF the federation, tomorrow is to
begin with the presentation of his
witnesses. Clayton has between 10
and II witnesses ready and he will
urge adoption of scent fare for
all but the express bus lines, for
an experimental period of six months.
Clayton has argued that to increase
fares would be to drive away from
the company more Of its regular riders,
and he finds basis for this argument
in the reduction Of the number Of
passengers carried since the company
abandoned the 81 weekly street car
pass January g. The company will
argue that this loss in passengers car
ried does not mean corresponding
loss in individual riders, but rather
a reduction in the number Of rides
given for stated price
Heberle figured the effects of q
scent fare several ways.
He found that if there was a scent
fare with free transfers and no change
in the 3-cent school fare, the revenues
would decline s1343455 over year
from the amount received from the
present fare schedule and that there
would be an increase in passengers OF
l4.3 per cent which would cause
boost of s563.435 in operating eX-
penses. He found the net effect there
fore would be reduction of $780,
$50 in company earnings. This, ac-
cording to company figures, would put
1t into the red.