Evening star., 1947-12-05
Capital Transit
Fare Rise Delay
Appears Certain
Firm Refuses to Agree
To Suspension, but
PSC Will Order Stoy
By J. B. Zotmon
Sfor Stoff CORRESPONDENT

Stor Stoff Correspondent
BALTIMORE, Dec. 5.-Suspen-
sion of the Capital Transit Co. s
proposed 5-cent-per-zone fare on its
Maryland lines, scheduled to take
effect Thursday, appeared certain
today.
Although the company wrote the
Maryland Public Service Commis-
sion late yesterday that it was un-
willing to suspend voluntarily the
new rate, the commission had an
nounced earlier it would issue a stay
order if the company failed to act.
In it's letter, the company said
that in view of the critical nature
of it's present financial condition,
it cannot agree to the suspension
of or voluntarily suspend the ef-
,fectiveness of the new fares con-
tanned in it's new tariff schedule
More Hearings Postponed.
Further hearings on the transit
company's proposed new rate were
postponed yesterday by the COM
mission until next month.
The commission also postponed
until January the hearing sched-
uled Tuesday on the company's plan
to abandon it's Beltsville-Branch-
vile shuttle streetcar line in Prince
Georges County.
Opposing arguments in the new
fare proposal will be heard i'm.
mediately on completion of the
hearing on the abandonment re.
quest.
Financial Condition Cited.
In closing the company's cast
for the new fare, Edward D. Mer.
rill, president, said his firm is II
critical financial condition as a re-
suit of its annual losses of more
than $50O,oOO on its Maryland oper'
ations.
It cannot emphasize too strong
Iy," Mr.. Merrill declared, that WI
must have prompt relief from thi
financial burden. The case crie'
out for immediate correction.
Never in the history of this com
pany has the situation been so Seri'
GUS, requiring prompt and substan'
tial action to restore balance be-
tween income and outgo and tt
save the company's credit.
Costs to Deplete Resources.
Actual expenditures, including
commitments for new buses ane
other capital requirements, are nov
on a level which will actually de.
plete the cash resources of thu
company to an intolerably low poin
within year ."
MIR. Merrill contended the entire
operations of the company hav'
been operated at a loss since las
July l, following an arbitration
award granting wage increases tt
the company's employees. For th'
four month period beginning Jul.
/, he added, the company had
net income deficit Of $115,984.
He said no substantial changes il
fare rates on the company's Mary
land lines have taken place sine
the firm was organized in 1888.
Compared to individuals.
"The budget problems of the com
pany are no different in principle
from those of the individual" MI
Merrill asserted. Income must b.
more than outgo, or disaster re-
suits. What inexhaustible res
ervoir of money is there from which
to draw to make up def1cits?"
He expressed confidence that th'
companys Maryland patrons woult
rather pay fare increase thar
have their service reduced to Wha
is paid for by present rates.
Earlier, Dean ]. Locke, compan,
staff engineer, submitted a char
showing the lack of uniformity il
zone rates on the firms Maryland
streetcar and bus lines.
Fares in Six Ranges.
Some of the lines, according II
the chart, now have as may as 81:
different types of fares, rangin
from an eight-cent cash fare to 2
tickets for $1.50.
At present, 13 of the company
81 Maryland lines have a fve-cent
per-zone cash fare, Mr.. Locke tes
tilted.
Another chart presented to tn
commission by Mr.. Locke shove
that the company's revenues fror
it's Maryland lines for the 12-montl
period ended September 30, 1874
totaled $1,070, $50. Under the pro
posed new fare system, the char
showed, the total would be raised t
81 ,480,O ,O46, an INCREASE of $409, ,466
Most of the anticipated increase
according to the chart, would com
from the company's Prince George
County lines, where the expecte
raise in revenue would total 1922 SO.