Evening star., 1937-11-19
FARE RATE BACKED
BY TRADE GROUP
Federation of Business Men
See Advantages in Token
Increase.

The Federation of Business Mems
Associations last night approved a
| committee report accepting as hav-
| Ing more advantages than disad-
vantages" the increase in street car
fares recently granted the Capital
Transit Co. by the Public Utilities
Commission.
The only dissenting vote came from
Louis F. Prick of the Southwest Busi-
| ness Mems Association, who said he
| voiced the sentiment Of his associa-
ton.
The report, submitted by the Pub
llc Utilities Committee headed by
Louis I. Oberg. questioned the wisdom
Of only one phase of the new fare
set-up. The only issue before U.S."
1t stated. lis the sale of six tokens for
so cents instead of three tokens for
Is cents"
See Adjustment Made.
This, it said, while satisfactory to
the citizens of average income, may
prove hardship to citizens in the
lower income brackets" Interviews
with the commission, the Transit Co.
and riders showed that after the first
week even these we're adjusting
themselves" to the new rates, it was
stated.
The report continued: I'VE, as busi-
ness men, must recognize the prin-
ciple that person Or corporation is
entitled to fair rate of return on
his investment" This, it pointed out,
frequently, had been set by the courts
at per cent.
The committee has been informed
and the evidence produced at the
hearing showed conclusively that even
with the present increase in fares,
the company will not earn enough in
come to pay the stockholders 4 per
cent on their investment"
1t termed "foolhardy" any attempt
by the federation ito challenge the
fairness of the order of the Public
Utilities Commission in the courts or
otherwise.
One-Man Cars Considered.
Turning to the question of the ad-
visibility of the one or two man
operation of street cars, the commit
tee pointed out: IF Congress decides
that cars should be operated by two
men, then the company will be justi-
fled in demanding another increase
In fares in order to meet the in
creased cost of operation"
The system of charging fare based
on the length of the passengers ride
was acceptable to the Transit Co., but
had been opposed at the hearings by
residents in outlying districts, it
stated.
Federal Communications Commission,
addressed the federation. Speaking
on television, he said the frequency
used is SO high that the range for
transmission is limited to the hori-
zon or about IS miles. From the top
of the Empire State Building, he said,
where the National Broadcasting CO.
maintains station, the range is in
creased to As miles by reason of the
extreme height from which the broad
cast goes out.
This shortnesS of range will be over
come in commercial transmission, he
explained, by the use OF the coaxial
cable developed in the last few years.
Appointments Made.
Theodore s. Grape, president of the
federation, announced the following
committee appointments: Law and
legislation, j. Nelson Anderson; utili-
ties, MIR. Obergh; coming, Frank Nc
Laughlin; traffic. Henry j. Smith;
membership, L. r. Rollins, and ten
tatively finance, Carl H. Dorch; re-
ception, Louis F. Frick, and associate
counsel, John Paul Jones.
The plan Of the District of Co.
lumbia Motor Club for the establish
ment of courses in traf1ic safety to
be included In the accredited cur
riculum of public schools was in
dorsed.