Evening star., 1937-11-03
Utilities Body's MIe Effec-
tive at Midnight-Jumped
From q for 80 Cents.
RATE APPLIES TO ALL
LINES; FIRM GETS SLAP
Commission Says Company Should
Replace Obsolete Cars at Rate
of at Least so a Year.
BY DON S. WARREN.

An increase in street car fares from
four for 80 cents to six for so cents
was ordered today by the Public Utili-
ties Commission, effective at midnight
tonight, in the long-awaited decision
on an issue which has been pending
since June, 1896.
The rate will apply to all bus lines,
except the Hams Point special service,
as to all street car lines of the Capital
Transit Co.
Coupled with the rate decision was
an order requiring the company to
give universal free transfers at all
intersecting points.
The commission did not order, but
1t did state definitely as its view that
the company should provide modern
new street cars at the rate of no less
than so per year. to retire the most
obsolete equipment.
Cuts Fares for Some.
The decision was a rejection Of the
company's latest request for an in
creased fare. In June of 1886 the
company sought the fare of three
tokens for 25 cents. Later it came
in with an amended petition calling
for token fare of four for 35 cents.
The final order amounts 10 about
the same as the company's first re-
quest, except that the tokens will
be sold at the rate of six for SO cents,
instead of three for rs cents.
The rate order will mean a reduc-
ton in fare for some of the patrons
of the transit company. The fare
on the express bus lines and on the
Sixteenth street bus lines now is 10
cents, cash, or use of the s125 pass.
Beginning tomorrow. the fare on
these lines will be reduced to the
token rare, except for those who pre-
fer to pay the 10-cent cash rate
The company estimate of the effect
of the rate change is an increase of
s254, 900 per year.
In ordering the rate change the
commission made clear its conviction
that the company is not now making
rate of return as high as the courts
have regarded fair, and added it did
not believe that either a street car
token fare of 8ls cents or 8s. cents
would permit the company to earn a
fair return. But it said it believed the
new rate for both street cars and
busses was as high as would benefit
the company financially, since a
higher rate might reduce the number
of persons using the service.
Revenue Need Is Claimed.
The commission considered the rate
change Immediately after it had con-
cluded some months ago long valua-
tion hearing on the transit concern.
The commission found that the fair
value of the property of the transit
company, used and useful within the
District, as of last May / to be not
less than S23000,000. This figure is
not far different from unofficial FORE
casts made during the time of the
valuation proceedings.
The company's petition for higher
fares was based upon its insistent
claim that it must have greater reve-
nues, partly because of the millions of
dollars spent for rerouting and track
Improvement and partly because of in
creased costs resulting from wage in
creases for its tra;nmen and shopmen.
While recognizing these points, the
commission emphasized the need for
replacement of worn out rolling stock.
and also made reference to the fact
that the Transit Co. is controlled by
the North American Co., the giant
utilities holding corporation.
Commissions Statement.
The commission said:
THE commission is cognizant of
the fact that in the normal conduct
of its financial affairs, a company is
dependent upon its ability to satisfy
those from whom it must obtain funds.
The obtaining of money is, in certain
instances, materially aided by reason
of the personnel holding stock. Con-
(See TRANSIT, Page A-3.)