Evening star., 1937-06-13
HEARING 0NPLEA
FOR HIGHER FARES
| OPENS NST0M0RROW
Battle Looms Over Transit
Company's Plan to
Boost Charges.
FIRMS PETITION BASED
ON NET INCOME DROP
Testimony This Week Is Expect
e1 to Bring Valuation of Prop.
erty Up to Date.

With the Federation Of Citizens
Associations demanding a return to
a scent street car and bis fare,
battle royal is in prospect starting
tomorrow at 10 am, when hearings
open before the Public Utilities ccm-
mission on the petition Of the Cap. al
Transit Co. for an increase in fares.
year ago this week the Capital
Transit Co. applied for an increase
in token fare from to 30 cents to
3 for 25 cents. Recently it amended
the petition on the plea Of a more
urgent need of revenue. so that it IS
now asking four tokens for 35 cents,
or at the rate of .s34 cents ride.
In seeking this higher rate the COM
pany pointed to a $4,000 net income
above operating expenses for 1896, as
against s37863l for 1885.
Valuation Undetermined.
The Public Utilities Commission
postponed consideration of the rate
case for year because it had before
it no revaluation of the street car
and bus properties since the merger
on which to determine what should
be a reasonable rate Of fare. Since
April II the commission has been en-
gagged in giving and receiving expert
testimony to bring the valuation up
to December 81, 1885. That phase Of
its work has been completed
The next phase, starting with the
hearings this week, is to bring the
valuation up TO date, or to April 80,
1887.
There is wide discrepancy between
the figures submitted by the company
and those claimed by the Public Utii-
tiles Commission in all matters en-
tering into the determination of the
value of the properties. Hearings on
the second phase, however, should
| progress rapidly. In the earlier study,
, agreement was reached on principles
applying to such matters as deprecia-
tion and reproduction costs. Add
tions and betterments, in useful prop
erty and equipment since December
81, 1895. will enter largely into the
new valuation picture.
Valuation to Affect Fares
The problem. from the viewpoint
OF the riding public, lies in the final
valuation figures acceptable to the
Public Utilities Commission. The high
er the valuation is placed the better
chance the company has Of being
granted an increase.
The commission is not expected to
reaGl a decision on valuation until
all data have been submitted. 1t may
announce its decision on the valua-
ton before actually starting on the
question of rates or it may decide
these two questions together.
William NICK. Clayton, chairman OF
the Public Utilities Committee Of the
Federation of Citizens Association, is
expected to be on hand tomorrow and
bring up his proposal for scent
fare on test basis.
The federation has gone on recor2
in this matter. 1t is not likely. how :
ever. to receive any more than a COO
reception.
Pass Provision Retained.
The Capital Transit Co. petition
includes the l0-cent cash fare anc
the sl25 weekly pass provisions nov
in effect Although seeking to charge
35 cents for four tokens-an extra
cents above the present token rate
the petition provides for universal
transfers on BUSES and street cars
for tokens, as well as for the Sl2;
weekly pass That would make fol
slight reduction for daily car riders
The question of transportation serv-
ice since the merger of the street ca,
and bus lines also will enter larseL;
into the rate hearings. Clayton anc
other public representatives are eX.
pected to reiterate their demands that
more of the out-dated street cars bt
scrapped-it is claimed there are zoe
of them yet-and that the company
be ordered to extend its purchases oi
new cars and buses.
The same valuation experts for the
company and the commission who
figured in the earlier phase of tho
study will appear again, beginning
tomorrow.