Evening star. [volume] (Washington, D.C.) 1854-1972, 1947-03-19
CitizensFavor
Fair Return on
TransitFares
Resolution Urges
SIS q Share for
Stockholders

Washington's citizens associa-
tons came out in favor of a fair
return for the Capital Transit Co.
today as the Public Utility Com
mission hearings on the company's
request for fare increases were re-
suned.
A resolution adopted by the Fed
Grafton of Citizens Associations
Public Utilities Committee favored
return of IS share to stock
holders. Stockholders have not re-
ceived more than So a share for
the past 10 years.
Although it favored the increase
to the stockholders, the aSSocia-
tons resolution made no recon-
mendations on how fares should be
increased. Milo F. Brinkley, who
read the report for the citizens
fgroup, said he personally thought
the PUG should try an intermediate
step in the fare structure under
which the price of the pass would
be increased to $3.50, but tokens
would be retained at a rate of six
for so cents.
The company has asked the PUG
to abandon the use of tokens, con-
tinue individual rides at dime and
raise the price of weekly passes to
S1.50.
s Pet. Return to Stockholders.
He suggested return to the stock
holders, under the citizens aSsociat-
ed plan, would amount to about 5
per cent, or approximately the same
figure the company estimates the
fare increase would bring.
Mr.. Brinkley was asked by the
transit companys attorney, F. G.
Await If he thought the transit
company should have higher rate
base return than the Potomac Elec-
trio Power Co. and the Washington
Gas Light Co., which have 512 and
s per cent rate base returns respec-
lively.
Mr.. Brinkley, speaking personally,
said he did In taking this position,
however he favored higher return
for the transit company than that
favored by the federation.
Charles M Maize of the Kenil-
worth Citizens Association and
John H. Connaughton, vice chair
man of the federation's Utilities
Committee, testified in favor of an
increase, but also favored selling
six tokens for so cents to see If this
would bring the desired increase.
PUG Accountant Questioned.
Following testimony by the cit
liens association representatives,
Mr.. Await and John O'Dea, public
counsel, cross-eXamined V. A. NC
ElfreSh, PUG accountant, on his
estimates of the company's prospects
of profit under the fare increase
and its financial record over the last
13 years.
Mr.. ODea asked Mr.. McElfresh to
consider four alternate plans to the
fare structure asked by the COM
pany. They were:
The present fare rate, plus rs
cent off-peak or shoppers pass, good
only from 10 am. until $3.50 pm,
and after 7:30 pm; the present fare
rate, minus token; the present fare
rate. with S tokens for As cents, in
stead of three tokens for Is cents,
and a combination of 10 cents fares,
five tokens for 45 cents and $1.40
pass.
Mr.. McElfresh's estimates of the
added income these alternatives
would bring were generally higher
than the company's.
Under questioning by Mr.. Await,
Mr.. McElfresh brought out that tax
underpayments in the years 1925
and failure to charge 100000 to
depreciation in 1914 would have the
effect of lowering the company's
average rate base return for the
past 10 years. from 7.27 per cent to
about IL per cent. Previous testi-
mony by Mr.. McElfresh had brought
out that the company's estimates of
returns sinve 1884 were low due to
failure to add a substantial tax
vnf1lr1H