Evening star., 1937-06-19
SLUMP IN TRANSIT
INCOME IS BLAMED
0NBUS0PERAT|0NS
Sager Says Rail Revenues
Of Company Drained by
New Lines.
TREND EXISTS DESPITE
MOTORS POPULARITY
Engineer Thinks Average Fares
Should Be 8.2 and 7.29 Cents
| to Get 5 Pct. Return.

With testimony In the record TO
show that the downward trend Of
Capital Transit Co. revenues Is being
accelerated by improbable bus opera
tion. but that the motor carriers are
preferred over street cars by the rid-
ing public. the transit fare increase
hearing by the Public Utilities Com
mission today was In recess until
Monday.
Comparative figures on bus and troll
ley operation were introduced into the
proceedings at the District Building
late yesterday by Fred A. Sager. chief
engineer of the commission, who said
that rail revenues were being drained
to meet bus deficits and added that
he wanted Ito raise before the COM
mission at this time the advisability
OF the Capital Transit having spent
81 800, 900 for buses" in view OF the
showing. The expenditure, he ex-
planned, previously had been testified
TO by j. E. Heberle, vice president
and controller.
Sager estimated that the transit
company's net for 1887 would bs
S568,250. as compared with S629..
28l.03 in 1895, but this figure was
challenged by spokesmen for the util-
ity. who pointed out that he had
allowed only $4,000 for the recent
pay increase granted its employees,
while, as a matter OF fact, it would
Approximate $250.000. He estimated
1887 rail income at $3.50, 900 and bus
deficit at sl9l,750, as compared with
the actual rail net Of 1927 ,039.5o and
bus loss Of sl97,75s.56 last year.
The engineer said that the aver
age bus fare. which he placed at ST
cents, should be advanced to 50, and
that Of street cars from Sal to 72o.
II Capital Transit Is to have 4 5 per
cent return on 4 valuation he arbi-
trarily placed at s4l ,oOo, ,00o-without
depreciation allowance-on the basis
OF former studies. This scale was
based on income for the first four
months OF this year. Sager, however,
qualified his statement by saying that
the calculations took into existence
the present service set-up, and that
he would have more to say on this
particular point later in his testi.
mony
Two other tables that sager intro.
duced showed the extent to which bus
operation is favored over that via the
rails when the cost is the same.
! Starting with January last. when the
81 pass was replaced by that costing
3l.25. and good on either buses or
street cars, there was q decided in
crease In bus riders and . CORE.
spending decrease in trolley patrons.
As compared to the same period in
1895. These trends have continued.
Another witness yesterday after.
noon was w. B. Bennett, who placed
the current valuation OF Capital
Transit properties here and in Mary.
land at S60,40l,l17. on a reproduce
ton new basis. and S45.204.300 with
depreciation allowance. To have ap-
piled this same depreciation to
Sager's valuation would have brought
it down around s26,o0O,O0o.
Bennett said his figure was reached
by bringing that established on De.
cember 81, 1885, to date. The com.
pany's valuation is in issue at the
hearing.
The commission deferred until
later the cross-examination OF Ed
ward A. Roberts OF New York, a
consulting engineer. introduced AZ
an expert witness by Capital Tran
sit. who said yesterday morning that
within three years the replacement
OF 80 per cent OF its rolling stock.
or 205 street cars, would be neces-
sary
The hearing will be resumed at 10
o'clock Monday.