Evening star. [volume] (Washington, D.C.) 1854-1972, 1948-07-14
Capital Transit
Cites 1887 Rise
In Labor Costs
Increase Since '3o
In Fares Put at 1920
In Plea for Boost
By Jerry O'Leory, yr.

Capital Transit employees have
received 108 per cent in wage in
creases since 1899 while streetcar
and bus fares have increased only
49 per cent over the same period,
E. D. Merrill, president of the COM
pany, declared today at a Public
Utilities Commission hearing on
proposed fare increases.
Mr. Merrill was the company's
final witness The PUG was expected
to hear opponents of Capital
Transits request for higher fares
later today.
The company seeks an increase
from 10 to Is cents in cash fares,
restoration of tokens at two for a
quarter, and an increase in the
weekly pass price from $3.50 to
s185.
The Capital Transit president
urged the PUG to take prompt and
effective action on the petition.
Other Costs Are Cited
THE company should not have
to endure a long period of made
quate earnings before securing re-
lief" Mr.. Merrill said. This would
be obviously unjust. When new
circumstances arise and higher costs
are imposed upon the company.
fares should be adjusted promptly
to meet such higher costs"
In addition to increased wage
costs, Mr.. Merrill declared. there
have been substantial increases in
costs of materials and supplies pur-
chased by the company since 1889.
L believe that all of our patrons
will agree that the company should
be allowed to earn a fair return on
the value of its property devoted to
their service" Mr.. Merrill declared.
LAS to what is the amount of a fair
return, it seems obvious that the
rate of return of III per cent is low"
Mr.. Merrill said that without the
proposed increase the company Will
not even earn the interest required
to be paid on it's outstanding bonds
or a fair return to its stockholders.
He said the company will need ad-
ditional funds for expanding its
service as the city grows.
Delay Is Sought.
Mr.. Merrill pointed out that new
buses recently purchased COS $lo,-
224. as compared to the preWar price
of s11,773. Replacement OF street.
cars, he said, costs about $24,00 per
car. compared with the 1912 price
of Sl8,362 Three track projects
under Dupont Circle, at Fourth
street and Pennsylvania avenue
NV, and near Barney Circle-will
cost s1,5O000O, Mr. Merrill added.
The company also must build a new
main repair shop at a cost of be-
tween 100000 and 100000.
After the company wound up its
case with Mr.. Merrill's testimony,
opposing counsel argued whether
the hearing should be adjourned
10 DAYS or a month to give oppo-
nents Of the rate increase chance
to study the evidence. PUG Chair
man James H. Flanagan said he
would rule later in the day.
Meanwhile the commission began
hearing interested persons and or
carnations shortly before the two
hour noon recess was called. Lev
erett A. Meadows, speaking for the
North Washington Council of Citi-
zens' Associations, urged the PUG
to set compromise schedule OF
rate fares: IL cents cash. five tokens
for SIS cents and $1.65 weekly pass.
10 Organizations Present.
Miss Gertrude Evans of the
Washington Industrial Union Coun-
Gil, CLIO, declared she was "unalter-
ably opposed to the proposed fare
increase. Mrs. Grace Van Casteel,
representing the Georgetown Citi-
zens Association, declared she was
in favor of the fare increase be-
cause Il am willing to pay an ade-
uuate fare for adequate service"
Representatives of 10 organiza-
lions crowded the District Build
ing. board room today prepared to
register protests against the higher
fare petition.
Two transit company officials
were heard yesterday in support OF
the petition for the increase. They
were J. E. Heberie, vice president
and controller, and william B. Ben
nett. vice president and secretary
of the company.
Mr.. Heberle declared the COM
pany's rate of return should not be
less than 10 per cent on the rate
base-about s30,000000 by latest
estimates.
Sees S1,504.998 Loss.
The witness told the PUG his
company would sustain a revenue
loss of 81 ,5O4 1898 if compelled to OPP
crate for another year with current
bus and streetcar fares in effect.
Among the organizations expected
to appear in opposition to the COM
pany request are: The United Public
Workers of America, Local 10; the
District Federation of Federal En-
ployes' Unions, the District Com
munist Party. the Washington Com
mittee for Consumer Protection:
Local 200. Cooks, Pastry Cooks and
Kitchen Employees; the Washington
League of Women Shoppers, the
Shepherd Park Citizens Association,
the Washington Chapter, Americans
for Democratic Action; the Arkansas
Avenue Citizens Association, the
Burroughs Citizens Association,
Stanton Park Citizens Association,
the Women's Auxiliary, UPWA: the
Washington Committee for Wallace,
the American Federation of Gov
eminent Employees, the Washington
Area Branch, American Veterans
Committee, and the Association to
Oppose Transit Fare Raise.
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