Evening star., 1937-06-15
.TRANS|TF|NANC|NG
IS HELD UNFAIR BY
CLAYTON AT QUIZ
Federation Representative
Disrupts Hearings on
Rate Application.
CHARGES CONTROL BY
NORTH AMERICAN co.
Declares Trick to Get Bankers of
Capital to Back Increased
Fares.

Charging that the Capital Transit
Co. has been unfair to the public" in
going to Washington bankers to raise
funds for the recent purchase Of new
equipment, William NICK. Clayton,
utilities chairman of the Federation Of
Citizens Associations, today disrupted
the quiet Of hearings on the company's
application for an increase in token
fares.
Clayton became engaged in such a
sharp dispute with the company's at
torneys that 1t was necessary for
Chairman Riley E. Elgen of the Pub
lie Utilities Commission to end it.
The hearing had proceeded quietly
enough until S. r. Bowen, one Of the
company's attorneys, made q plea for
remedial relief" to put the company
in better financial position to render
more efficient service, both to the pub
lie and its stockholders.
Clayton Asks Questions.
Immediately Clayton was on his feet
with series of questions intended to
force counsel to admit that the Capt.
tai Transit Co. is actually controlled
and owned as subsidiary by the
North American Co. OF New York, 4
party to the 1888 merger.
1T is commonly known that the
North American Co. owns the con-
trolling stock" Clayton insisted more
than once.
At this point E. D. Merrill, presi-
dent of the transit company, reminded
that half of its stock is held by the
Potomac Electric Power Co.
Clayton shouted that the local
power company also is controlled by
the North American Co. He suggested
that the traction head stop quib-
bling"
The spokesman for the Federation
propriety OF the traction company
officials in begging" loan from
Washington bankers to finance new
equipment when they should have
gone, he said, to the North Ameri-
can Co.
Promised Financial Aid.
Under the merger agreement. Clay
ton said, the New York corporation
had promised to give financial sup
port for the purchase Of needed equip
ment.
THE North American Co. Is able at
any time to put in enough money to
let the Capital Traction Co. function
as it should" Clayton said, and later
added that the transit service now
rendered is notorious"
THE North American Co. has not
kept its word and promise under the
merger agreement" he charged
Turning to the local traction on
cials, he said:
you took off your hats and went to
Washington bankers as a trick to get
the bankers to back an increase in
fares.
That's not the fair treatment to
which the Washington public Is en-
titled. You cannot convince the pub
lie that an increase in fares is going
to result In better car service. The
service has been notoriously 1nefficient,
and you are riding to a fall in the
course you are pursuing"
Taken to Task.
Bowen took the federation spokes-
man to task for the character of "er-
roneous" impressions he was giving
with respect to the company's financ-
ing.
Clayton rejoined with a question.
isn't 1t true that there is some obli-
CATION on the part OF the owners of the
Potomac Electric Power Co. which has
reaped benefits from the merger, but
has denied any financial help?"
He charged again that both the New
York company and the local power
Company had left the traction COM
pany IN a position of begging Wash
ington bankers for a few hundred
thousands to buy so street cars"
Clayton also challenged a statement
OF Bowen that the company did not
expect to get sufficient rate Of return
to help 1t financially on any valuation
which the Public Utilities Commission
might find.
Then why spend $3.50, 900 on a
valuation when you say it would be Of
no account whatever?" Clayton de-
clared.
Substitution Of Passes.
Somewhat later a milder contro-
versy arose over the manner in which
the company withdrew its 81 weekly
pass and substituted the $125 pass.
Before then, however, j. E. Heberle,
vice president and controller, sub
mitted figures showing that the
average fare per revenue passenger
Is now $40 cents. Under the in
crease sought by the company, which
is asking four tokens for IS cents,
he said the average fare of all kinds
OF revenue passenger would be 6.82
cents, compared with s.02 cents prior
to the merger in 1898.
Explaining that the company ex-
poets to sell more SLIPS passes, he
said car riders would receive benefits
from universal transfers under privi-
leges now not always bestowed.
Clayton questioned the change from
the 81 to $1.25 passes.
He tried to bring out that the
Public Utilities Commission lacks con-
troll over the weekly passes and that
the company, at its will, could resort
to $3.50 pass
Hinman D. Folsom, counsel for the
P. U. c., protested that questioning
along this line was not germane to
the rate hearing. He explained the
commission had issued an order sane
tioning the change in passes after the
transit company had announced its
decision to withdraw the 81 pass.
The matter was germane, Clayton
insisted. since it IS important for the
public to know II the P. U. c. has
complete control over the issuance OF
weekly passes. He contended that 1t
has no such control nov.