Evening star., 1948-04-28
Capital Transit
Bars School Fare
Cut in Maryland
General Increase
In Two Counties
Set for May 9
A. 3. Il w. FARE HEARING Re
cessed Until May 6. Page Az.


Capital Transit Co. has informed
the Maryland Public Service Com.
mission it will comply with a por.
tion Of commission order to raise
fares in Montgomery and Prince
Georges Counties but will reject an
other portion for reduced rates fol
school children.
E. D. Merrill, president, said q
5 cent per 1ia mile zone increase
will be placed into effect May
but that lower fares for schoo
children at this time are considered
unreasonable" The commission
had authorized the general rate in
crease providing school children
were allowed Scent per zone rate
A company official said the com.
mission order for increased genera
fares and lower school rates was
"permissive' and would have be-
come effective May 2. The way was
left open, he added, for Capital
Transit to refuse the lower school
rates, but place its new general
tariff schedule in operation a week
later and this is what has been
done.
In Baltimore, the commission was
In session today with its general
counsel, S. Ralph Wsrnken, to de-
termine what further steps may be
taken.
Company's Position Stated.
Coupled with the general and
school rate order of last week, the
commission authorized the company
to eliminate ticket and pass fares
Mr.. Merrill wrote a letter to the
commission yesterday. stating the
companys position. In it he con-
tended that even with the Scent
increase, the company will lose
money on its Maryland operations
and that special school fares
should await time when Mary
land revenues at least equal the
expenses of such operations.
Mr.. Merrills letter said that "in
our opinion the establishment of a
Scent school rate will require fur
ther substantial increases over and
above the general scent fare level.
We believe that Scent school fare
is unreasonable"
"A special fare will increase the
volume OF school children at the
time of the peak Of the morning
rush period" the letter said. This
would require additional buses and
manpower with consequent in
creases in costs. These additional
costs woud create additional losses
for the company's Maryland busi-
ness.
Experience Cited.
"The company experience with
school children loads during the
peak rush hours in the District of
Columbia demonstrates that the
special school fare in the District
Is inequitable Under the cireum-
stances existing in this case We
see no reason why the company
should be asked to bear the losses
resulting from a reduced rate for
school children
For the foregoing reasons the
company hereby notifies the COM
mission lin accordance with last
weeks PSC ORDER that it cannot
accept and abide by that order"
Mr. Merrill also declared, the re-
fusal by the commission to permit
abandonment of the Beltsville line
aggravates the situation in
Maryland by obliging such opera
tion to be continued at a substan-
tial loss"
The PSC turned down the COM
pany's petition for abandonment of
the Beltsville -Branchville shuttle
line at the same time it granted
the fair increase.
The company originally had filed
the fare schedule to become ef-
fective last December IL. Subse-
quently, the PSC suspended opera
tion of the proposed tariff for l20
days until April 8.
At the time. the case was still in
progress, and further 30-day sus-
pension put the effective date for
the increased rates until May 9.