Evening star., 1943-06-15
Capital Transit
Fare Review
NOO Il
X
Ordered by PUG
Investigation Will Be
Coupled With Survey
OF Concerns VuIue
By DON s, WARREN.


Investigation of the reason-
ablenesS of the fares of the Capi-
tai Transit Co., coupled with 4
valuation Of the concern for
rate making purposes, was or
dered today by the Public Utili-
ties Commission in response to
nine communications received
in recent months from various
organizations.
The investigation was ordered by
unanimous vote Of the PUG men,
bers, and apparently places on the
commissions staff the task of full
investigation of the wartime condi-
tions of revenues, expenses, valua-
ton and fares of the transit
company.
Under the District PUG code, the
commission may employ extra engi-
neers, accountants or financial
analysts under an assessment against
the affected utility company.
Four Points to BE Stressed.
The investigation is to be four
fold affair, to determine the fol.
lowing:
The present fair value for rate
making purposes of the property OF
the company used and useful in the
public service;
The proper annual charge to be
made for depreciation;
The fair rate of return Ito be
allowed the company;
Reasonable, just and non -discrimi.
natory rates.
There has been no formal, official
valuation of the properties of the
transit company for some years, ex-
cept that an account was kept of the
costs OF additions and improvements
since the last commission finding on
value. Wartime conditions have
brought huge increase in srreetcar
and bus patronage and, conse-
quently, of revenues, but company
officials have pointed to the greatly
increased costs of operation and
| taxes.
The PUG stated in it's order:
| Since November 6, 1912, the
commission has received nine COM
munications requesting reductions
in the fares charged by the Capital
Transit Co. for streetcar and bus
service in the District. Four Of
these communications were resolu-
tions adopted by citizens associa.
tlons; one, resolution adopted by
an association Of business men; one,
a petition from a labor organiza.
tion. and three. letters from indi-
vidual citizens. Most of these com.
munications specifically request that
token fares be sold at the rate OF
four for 80 cents and that weekly
passes be sold for 81. (Tokens nov
are sold at the rate of three for Is
cents and the weekly passes at
Sl25.)
Probe Held Warranted.
Consideration of the resolutions,
petition, letters and a preliminary
investigation have brought the
commission to the conclusion that
the matter Is of sufficient impor-
tance to warrant further investi.
CATION" =.
One of the petitions for a valua-
ton and rate case came from the
Maryland and District Industrial
Union Council in a communication
from Sidney r. Katz, secretary
treasurer. who declared his organi.
zation believed fares could be "dras-
tically reduced"
He added, in his letter of January
IL, that "the mere fact that the net
income of the company during l941,
as compared with 1886, showed a AL
per cent increase would, it seems in
the public interest, warrant a COM
plete and thoroughgoing re-exami-
nation of the basic structure of
streetcar and bus fares in the Dis
trlct and all the factors which 20
into the makeup of this fare"
Among petitions received by ths
PUG regarding transit company
fares were those from the Fedora
ton of BusinesSmens Associations,
the Hillcrest Citizens Association,
the Citizens Forum Of Columbia
Heights and the Manor Park Citi-
zenS' Association.