Evening star., 1948-08-15
Order for Boost
In Transit Fares
beIievedCertain
PUG Is Expected to
Announce Decision
About September !
By Jerry OLeay. Jr.

increased Streetcar and bus fares
for Capital Transit Co. customers
are virtually certain to be ordered
by the Public Utilities Commission
about September /.
PUG Chairman James H. Fana.
gan and James Lauderdale, Q menu
Der, have not decided yet Just how
large the far increase is to be but
District Building sources agree the
PUG Is convinced that a price boost
Is necessary to keep the company's
financial position strong.
The PUG has three proposed fare
schedules before 1t, all increasing
the price of ride. plus the angry
demands of two organizations that
tere be no increase at all.
Capital Transit has asked for an
increase in the 10-cent cash fare
to Is cents. two tokens for Is cents
and permission to sell the sl.50
weekly pass for $l.85.
Two Other Proposals. =
This schedule was labeled too
high" by v. A. McElfresh, executive
accountant and auditor of the PUG,
at last weeks hearings on the in
creased fare request. He proposed
lesser schedule which would in
crease the 10-cent cash fare to i3
cents, sell three tokens for IS cents
and sell the weekly pass Tor Sl75.
The third proposal was offered
by Leverett A. Meadows, president
of the Manor Park Citizens Asso-
citation. He suggested 12-cent
cash fare, five tokens for SIS cents
and a $1.65 pass.
The PUG is not bound to select
any one of the three proposed rate
schedules. 1t could evolve a fare
schedule of its own that might be
better suited to the problem at
hand: to keep Capital Transit going
but without any more profit than
absolutely necessary.
In the past, however, the PUG has
been inclined to lean rather heavily
on the experience and recommends
tions of Mr.. McElfresh. who Is re-
garded as extremely competent by
both utility men and city officials.
Holds Increase Is Needed.
Mr.. McElfreshs own independent
study of Capital Transit's financial
led hi INTO testimy last
week that the company Is not earn
ing fair return on its $30,000,O0O
that things are going
to get worse before they get better
and that Capital Transit needs q
fare increase.
The PUG expert however.
knocked down his own proposal for
a fare schedule by declaring that at
least two other types Of fare would
be better. He defended his 13 cents,
three tokens for IS cents and SITS
plan by saying 1t maintained the
same balance between types of fare
as before the 1947 increase.
There are two disadvantages to
this plan, however, as Mr.. McEl-
fresh testified. First, it would slow
up service by forcing the use OF
pennies, and second, it would still
not provide the company with the
7is per cent return the PUG has
ruled it is entitled to.
The two better solutions, Mr. Nc
Elfresh said, would be either to in
stitute a straight cash fare as a
substitute for the cash-token-pass
setup or to set up a zone fare
system.
Inasmuch as Mr. McElfresh de-
clared he was reluctant to recon-
mend abolition of the weekly pass
and had not gone deeply into the
matter of zone fares. District Build
ing observers do not regard either
the straight cash or the zone fare
systems as likely to emerge from
the PUC's deliberations.
Compromise Expected.
More likely Is a compromise fare
schedule that will embody the more
desirable portions Of both Capital
Transit's proposition and Mr.. Nc
Elfresh's watered-dawn version Of
it.
Mr.. Flanagan was scheduled to
leave for New England for a two
weeks vacation today. He will be
back in time to receive briefs from
the two attorneys who have led the
to fare increases. They
are Harry r. Booth, representing
the Washington Committee for
Consumer Protection, and Benja-
min G. Sigal. who represents the
Americans for Democratic Action.
The briefs must be in the hands
Of the PUG by August 27.
Since opposing counsel appeared
unable to introduce any evidence
that Capital Transit does not need
help-but only that the
WCCP and ADA bitterly opposed
higher fares-a PUG decision
against them is regarded as a cer-
tainty.