Evening star., 1937-06-14
Objections of Public Repre-
sentatives Thrown Out
by Commission.
COURT ACTION THREAT
SUBSEQUENTLY, ARISES
Motions Intended to Block Imme.
diate Consideration of Fare
Boost Denied.

4hNN+
OF hearings on the application of the
Capital Transit Co. for increased fares.
Subsequently, the threat of court &C.
ton arose as the commission denied
motions intended to block considera.
tion of fares prior to announcement,
for public benefit, of the determined
valuation of the company as of April
80, 1887 and the rate of return to
which it would be entitled on such a
valuation.
William NICK. Clayton, chairman Of
the Public Utilities Committee of the
Federation Of Citizens Associations,
stated this issue might have to be met
later in the courts if the rights of the
PUBLIC" were ignored
Prior to today's hearings the Public
Utilities Commission had assembled
data on which to determine the COM
pany's valuation as of December 81,
1885. 1t has received no testimony
bearing on figures to bring the VAL
uation up to date. The elements Of
valuation will be gone into during the
present hearings.
Token Fare Increase Sought.
The Capital Transit Co. is asking
an increase in token fare from four
for 80 cents to three for 25 cents. A
year ago it sought ST. weekly pass
and three tokens for 25 cents. Until
today there has been no consideration
OF the rate case itself. Meanwhile,
the company had been granted a s125
weekly pass, which has been in use
for some time and would be continued,
with 10 cent cash fare, in its
amended application.
The first motion to suspend the
present rate hearing was made by
Louis I. Obergh, attorney for the Fed.
Grafton of Business Mems Association,
He asked suspension until the com.
mission had first reached a decision
on valuation. His motion was denied
and Clayton, who later intends to seek
scent fare on a test basis, entered
the controversy.
The spokesman for the Federation Of
Citizens Associations also demanded
! that the North American Co. of New
York be made party to the rate case.
AS the owner and controller Of the
property of the Capital Transit Co.,
which it operates as a subsidiary. the
North American Co. alone can answer
questions in which the public is vitality
concerned, Clayton said.
These questions, he said, were.
First: Whether the policy Of the
company is to continue expansion Of
the use of one-man street cars until
| there are no more two-man cars left
in operation.
Second: Whether the policy of the
company in substituting buses for
street cars is to continue until only
buses are in operation.
1T might be that the North Amer.
lean Co. cannot answer, but the door
is closed on this information until tho
owners come here and are asked about
it, Clayton said.
Clayton contended that this was the
| first proceeding in his knowledge
where rate case has been prepared
before valuation data have been COM
pleted His opinion was disputed by
| S. R. Bowen, counsel for the transit
company, who claimed that before the
case ends data will be be presented
bearing on all elements of valuation
| to date
The Federation of Citizens Asso-
Citations spokesman, however, held his
ground. With no valuation completed
at the present time, he protested that
the Utilities Commission would be
left behind closed doors" to fix VAL
hation and fix a rate of return on a
base concerning which the public
would have no opportunity to express
itself. He declared it was a rule Of
common sense" to complete valua.
tion case and determine rate of re-
turn before taking up the matter Of
increased fare
Richmond B. Keech. vice chairman
OF the commission, contended that
the present hearing was on a comb.
nation Of rates and valuations. In
regard to the commission arriving at
its determination behind closed doors.
Keech contended that no one has a
right in the room while the commits
sion makes its decision.
Hinman D. Fulsom, counsel for the
commission, defended this action. He
disputed Clayton's challenge that it
constituted absolutely new proceed
ure." Keech reminded him that the
same procedure was followed in de-
termining rates for the Chesapeake 6
Potomac Telephone Co.
Under the procedure which the COM
mission would follow, it would de-
termine three things. Fulsom ex-
planned. First, it would decide on the
valuation base; second. on a rate Of
return, and, third, whether the in-
come Of the company under the pro-
posed fares would support the rates Of
return.
Controller Takes Stand.
The commission having decided to
go ahead in its own way. ]. E. Heberle,
controller of the Capital Transit Co.,
took the stand to present the figures
on operating expenses.
"In the first three months of 1887 "
he said. "the company carried 39,406,-
954 revenue passengers and 13,863,6 SAT
transfer passengers, making total
of 53,270,58l passengers carried or
cars and buses" Revenue during ths
three-month period was given as
$2,555,376.
On the base Of three months oper.
alton it was estimated the number d
passengers that will be carried during
the full year would be l56,209,27l and
that the revenue from these farel
would be $40, 1872, $50.
| Thu Hanital Tronsif r,aer1er tool