Evening star., 1947-03-13
Capital Transit
Cites Deficit al
PUC Hearing
No Profit Realized
In First Two Months
Of AZ, HeberIe Says

Capital Transit Co. realized no
profit during the first two months
of 1947, testimony before the Pub
Lie Utilities Commission disclosed
today.
j. E. Heberle, vice president and
controller of the transit company,
told the PUG the company's operat-
ing income for the period showed
a deficit of more than 100000.
His statement brought out that
the company not only would not
enjoy a fair and reasonable" re-
tula1, but none at all, on the rate
base valuation of s30,000,G00 allowed
by the PUG. Operating income,
made up of net profit, plus interest
on long term Indebtedness, is used
by the PUG in calculating the "rea-
sonable" return.
Operating income for January was
about $4,000, Mr.. Heberle said.
Largely responsible for the Febru-
airy loss in revenue, he said, was
the fact that go cents of every in
come dollar now goes into wages
and salaries, whereas it was SO
cents a year ago.
Company's Plan Outlined.
At the same time, Mr.. Heberle
made clear the company's plan with
respect to tokens should fare in
crease be allowed. He said the COM
pany would not permit token holders
to use them in payment for streetcar
and bus rides, but would redeem all
outstanding tokens at the selling
price of 81s cents each.
The company seeks to increase the
weekly pass price from $l25 to Sl.50
and to charge straight 10-cent cash
fare after eliminating tokens, now
sold three for a quarter.
Opposition to the proposed fare
increase was voiced by Langdon c.
West, attorney for the Washington
Industrial Union Council (CIO).
Asserting that decrease in fares
may be in order, he produced vo-
luminous statistics to show the fare
boost would raise Capital Transit's
rate base return to 1873 per cent.
Prospects Called Good.
. MIR. West asserted that the COM
pany's prospects for 1947 and sub
sequent years are good, adding that
Capital Transit's testimony to the
contrary appears to be open to
question"
I'm 1945, the PUG was obliged
to reject many of the figures sub
mitted by Capital Transit" he said.
Capital Transits present case ap-
pears to be based on calculations
which appear similar to those made
by it in the 1945 hearings"
Under cross-questioning by F. G.
Await. transit company attorney,
Mr.. West acknowledged the COM
putations on which he based his
contentious were subject to mac
curacy."
Mr.. Await then asked that MIR.
Vests testimony be stricken from
the records on the basis he was not
a competent witness. PUG Chair
man James H. Flanagan deferred
decision.
S110,308 Deficit.
SaII yIIlS LIS CdlSuAduloiAS 4QA eiACl
Mr.. Heberle said the company's net
deficit for February was $110,30S.
He brought out that this deficit
amounted to a difference Of more
than 100000 in comparison with
the same month in 1916. At that
time. he related, Capital Transit's
net income was $95, 1856.
The net income deficit for Janu-
ary and February of this year to-
gether amounted to $149,2 he said.
In the same period year ago the
company had a net income Of $780,
145, he added.
He said operating expenses for
January and February, 1947, were
$447,495 greater than for the same
period during 1946.