Evening star., 1947-12-05
capif4+s&hEsit a. !
Fare Rise Delay
Appears Certain
Firm Refuses to Agree
To Suspension, but
PSC Will Order Stoy
By J. B. Zotmon
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 its present financial condition,
1t cannot agree to the suspension
of or voluntarily suspend the ef-
fectiveness of the new fares con-
tanned in its 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 its 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 case
for the new fare, Edward D. Mer-
rill, president, said his firm is in
critical financial condition as re-
suit of it's annual losses of more
than 100000 on it's Maryland oper-
ations.
''I cannot emphasize too strong
ly," Mr.. Merrill declared, that we
must have prompt relief from this
financial burden. The case cries
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 to
save the company's credit.
Costs to Deplete Resources.
Actual expenditures, including
commitments for new buses and
other capital requirements, are now
on level which will actually de-
plete the cash resources of the
company to an intolerably low point
within a year ="
Mr.. Merrill contended the entire
operations of the company have
been operated at loss since last
July l, following an arbitration
award granting wage increases to
the company's employees. For the
four month period beginning July
/, he added, the company had a
net income deficit of $115,984.
He said no substantial changes in
fare rates on the company's Mary
land lines have taken place since
the firm was organized in 1888.
Compared to individuals.
1.-THE budget problems of the COM
pany are no different in principle
from those of the individual,' Mr.
Merrill asserted. Income must be
more than outgo, or disaster le-
suits. = What inexhaustible res
ervoir of money is there from which
to draw to make up deflcits?"
He expressed confidence that the
company's Maryland patrons would
rather pay a fare increase than
have their service reduced to what
is paid for by present rates.
Earlier, Dean j. Locke, company
staff engineer, submitted chart
showing the lack of uniformity in
zone rates on the firms Maryland
streetcar and bus lines.
Fares In Six Ranges.
Some of the lines, according to
the chart, now have as may as six
different types of fares, ranging
from an eight-cent cash fare to 20
tickets for s150.
At present, 13 of the company S
21 Maryland lines have five-cent-
per-zone cash fare, Mr.. Locke tes-
tilted.
Another chart presented to the
commission by Mr.. Locke showed
that the company's revenues from
It's Maryland lines for the 12-month
period ended September 30, 1947
totaled s1,o70,580. Under the pro-
posed new fare system, the chart
showed, the total would be raised to
$1,4so,046, an incerase Of S409, ,466.
Most of the anticipated increase.
according to the chart, would come
from the company's Prince Georges
County lines, where the expected
raise in revenue would total $322, ,531