Evening star., 1937-11-21
mo. 3 of q Series.)
BY JAMES e. CHINN.

Failure of the Capital Transit Co.
to live up to the merger promises of
lower fares and improved service is
the fundamental reason behind the
loud civic protest against the six for
so cents token rate, according to
William NICK. Clayton. veteran chair
man Of the Public Utilities Committee
Of the Federation of Citizens Asso-
Citations.
Long regarded as the principal
spokesman for civic Washington in
public utility matters, Mr.. Clayton
prepared for The Star a special state
ment outlining the reasons for the
Federation's attack on the new fare
order-an attack that resulted in Mr..
Clayton being authorized to appeal
to the Pubic Utilities Commissions
to reconsider the case.
THE watchword of the federation
on public utilities matters has always
been and is now service first" said
Mr. Clayton. THE service charge
has been secondary.
The federation adopts the man
date of the statute enacted by Con-
gress in 1918 (the act creating the
Utilities Commission).
Purposes Have Failed.
1.-THE merger Of 1888 had for its
announced purpose improvement Of
service and reduction in fares. Both,
in the opinions of the vast majority
of enforced patrons of the company,
have utterly and miserably failed to
be realized
Before the merger through rail
service from one end Of the District
to the other was furnished. Now the
improved service requires from one
to four transfers to complete the same
journey.
ALSO before the merger an order
Of the Public Utilities Commission
banned the use Of one-man cars ex-
cept few on the suburban lines Of
the old Washington Railway 4 Electric
Co.'s system. The Capital Traction
Co. used none.
Nov the company announces that
all cars shall be operated as one-man
cars. It has grossly Disseminated
against certain sections of the District
in the character Of the bus service
rendered, as compared to other Sec
tions, and 50 of1ends against the Pub
lie Utilities Act.
Indispensable Cars Used.
Scores Of cars are in use four
years after the merger-long past
their dependable age-with no promise
from the company or the commission
that they will be replaced; and many
buses are an imminent hazard to the
life and limbs OF passengers.
Thousands of potential car and
bus riders have. by the character of
the service persisted in by the COM
pany, been forced, notwithstanding
the increased cost, to seek other means
Of travel over the streets and avenues
Of the city, and the number Is being
added to daily.
"The District has spent over ST.
100000 since the merger for commits
sion regulations with service poorer
and fares higher today.
"One reason advanced by the COM.
pany for the imposition Of one-man
cars was that fares could be lowered.
But they have been raised three times.
"The estimate valuation of the
company is set at not less than $685.
600, ,000' by the commission. The
Capital Transit Co. has a stock issue
of $24, 4,000, 900 and bond indebtedness
of ST, 600, 900, or 81, ,000, 900 on which
it desires to pay both interest and
dividends.
1T is earning enough to pay in
terest on its bonds.
1T is fair to suggest that its corpo-
rate set-up of stock and bonds exceeds
its valuation by $4,000 900. and ask:
Does this $4,000 represent high
finance or aqua pura?'
Dividends Have Been Paid.
1.-THE company has paid one divi-
dend of l per cent on its stock issue
since the merger-viz $240, ,000-but
the holders Of half Of the company's
stock issue-viz $4,000, ,000-have re-
ceived on $500, 900 preferred q yearly
dividend of S per cent and on $500, 900
common dividend Of 60 per cent In
1886, and since the merger dividends
Of over $10.00QO00 have been paid
from the earnings Of the Potomac
Electric Power Co. 1
"The same people who ride the cars
and buses Of the Capital Transit Co.
pay electric light bills to the Potomac
Electric Power Co., both controlled
by the North American Co. Of New
York: The tear ducts, therefore, need
not work overtime On the plight Of al