Evening star., 1945-03-22
Transit Fare
Boost in Future
Held Possible
HeberIe Tells PUG
Revenue Drop Might
Bring Request
By BAINBRIDGE CRIST,

ny DAlNDhID0E OhISI.
If Capital Transit Co. revenues
should drop sharply at some un-
predictable period in the future
1t might be necessary for the COM
pany to ask for an increase in fares
j. E. Heberle, vice president and
controller of the company, today
told the Public Utilities Commission
which is holding hearings on the
valuation and rates of the company
Mr.. Heberle predicted the com
mission would allow the company a
gross income of at least $500, ,OOC
during the years ahead. The gross
income last year was $2,285,000
E. Barrett Prettyman, counsel for
the company, has made it clear
however, that the company was not
seeking any increase in fares at
this hearing.
Sees Slump When NaziS Fall.
Under questioning by Lloyd B.
Harrison, assistant corporation
counsel, and James W. Lauderdale,
peoples counsel, Mr. Heberle said
he would look for a decrease in
passenger revenue after the COL
lapse Of Germany, even though war
activities were continued in Wash
ington during the war with Japan
and sometime after the final peace.
He said he predicted this decrease
in passengers after the end of the
European war on his belief that
fhnrp will ho a AF -
cars.
I'VE are pouring large amounts of
gasoline into the German theater of
war; Mr.. Heberle said. After the
war is over there we will have a
large stock of gasoline on the East
ern seaboard. 1 do not think there
will be any change in the rubber
situation"
Mr.. Heberle also pointed out that
with the resumption of peacetime
standards of service and use of
longer bus routes, the expenditures
of the company will increase, while
the revenues will decrease. The
company had operating revenues of
more than $2700O,0OO last year and
Mr.. Heberle said it would be difficult
Tor the company if they fell below
S22,O00,OOO.
VIII Get 125 New Cars.
AS previously announced. Mr.,
Heberle said the company was ex-
pecting the delivery of rs new
Streetcars in April and SO in Sep
tember, with total cost of approxi-
mately S2,500,000. 1t is the inten-
ton of the company, he said. to re-
tire 90 Of the older type streetcars,
which were purchased between 1907
and 1911.
Mr.. Harrison reminded Mr.. Heberle
that in the refinancing hearings late
laf year the company predicted
grNs income of S1,5OO,0O0 in the
period OF 1948 through 1851, while
the company in the present hearing
had estimated that gross income
would decline to Sl,2O0,00O if there
were a 20 per cent decrease in pas
senger revenue
Asked If these estimates did not
conflict, Mr.. Heberle replied that
the gross income estimates presented
in the refnancing case were only
assumptions" He said he believed
the commission would have ap-
proved of the refinancing even if
the lower estimate of gross income
presented in this hearing had been
presented last year.
Might Cut MOdernization,
II the revenues of the company
fall to a great extent in the years
ahead, Mr. Heberle said that of
course obligations under the l.-
financing agreements would ha.r
to be met and the company might
have to tighten up" on other cap
ital expenditures, such as for mod
ernization of equipment.
Testifying yesterday, Mr. Heberle
listed the total cost of all properties
of the company at $60,673,835. 1t
was brought out that the cost of the
conduit tracks-those with third
rajl-averaged $135,052 per mile,
against s47,097 per mile for surface
tracks in which overhead power
wires are used.
In discussing the cost of property
acquired from predecessor COM
panies on December l, 1888, Mr..
Heberle said the cost of such ac-
quired property was S44, ITO 1903, al
though the historical cost of that
property-the cost of the property
when first devoted to public service
was $31 ,889 ,524.