Evening star. [volume] (Washington, D.C.) 1854-1972, 1937-04-13
TRANSIT OFFICIAL
At VALUE HEARING
Controller Testifies on Cost
Problem Before Utilities
Commission.

long draWn-out hearing was in
prospect today as the Public Utilities
Commission began its second day of
receiving evidence bearing on total
valuation of S54,206,262 placed by the
Capital Transit Co. for rate-making
purposes on its combined properties
in the District and Maryland.
The transit company received its
first setback late yesterday when
the commission refused to combine
with the present proceedings hear
ing on the company's pending applica-
ton for higher fare. Such a pro-
cedure was proposed by the company
to expedite the rate case, it claimed,
and to bring quicker relief to a finan-
cial situation which, it contended,
makes it impossible now to render
better service.
The commission held steadfastly to
the usual procedure and gave notice
that it would conduct a hearing on
rates 10 days after it had reached
final conclusion on the valuation
base. It thereupon prepared to hear
further testimony from the company.
with J. E. Heberle, Capital Transit
controller, summoned as the first wit
ness today.
Cost Put at s37,527,953.
Heberle gave $37,527,953 as the his
torical cost of the companys proper
ties as of December 81, 1895. This
figure included only S956,318 for the
cost of all the Maryland properties.
BY historical cost" he said he
meant the cost to the original COM
pany of property used and useful in
street, railway and bus operations.
The morning was devoted entirely
to examination of these figures cover
ing Is pages of schedules.
Figures Face Attack.
Indications at the outset point to
repeated attacks which Human D.
Folsom, attorney for the Public Utili-
ties Commission, and William NICK
Clayton, representing the Federation
of Citizens Associations, will make
on the valuation figures presented by
the transit company. These figures
are as of December 81, 1885, agreed
on as starting point.
In an "off-the-record' fare-up
over the kind of service the company
is now rendering, Clayton declared
there might as we'll be showdown
during the present hearings. He said
the company has never given the pub
lie the service it is entitled to expect
under the law.
Counsel for the company hit back
with a claim that the service was
in accordance with the requirements
laid down by the Public Utilities Com
and Sin some instances more
generous"
S. r. Bowen, one of the transit
company attorneys, protested that
better service cannot be given until
earning capacity is increased
Give us the service the public Is
entitled to-" Clayton countered, land
we'll pay whatever increased rate the
commission fixes. But there is limit
to fares-you can't keep on sky
rocketing them"
Higher Token Fare Asked.
The transit company has applied
for fare based on three tokens fer
Is cents instead of the present rate of
four tokens for 80 cents. In its origi-
nal petition last October it sought
the establishment Of a SIPS weekly
pass for street cars and BUSES in
stead of the then existing 81 street
car pass. Since then, however, the
commission has authorized the SIPS
pass.
Both Folsom and Clayton attacked
the method arrived at in some of
the valuation figures presented by
William B. Bennett, assistant to the
president of the company. The for
mer indicated the Public Utilities
Commission would present testi-
mony bringing the valuation more
up to date and that was one of the
reasons he favored postponing the
hearing on fare rates.