Evening star., 1948-04-28
Capital Transit Plans
Maryland Fare Boost,
but Bars School Cut

Capital Transit Co. has informed
the Maryland Public Service Com
mission it viii 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 for
school children.
E. D. Merrill, president, said a
5 cent per 112 mile zone increase
will be placed into effect May
but that lower fares for school
children at this time are considered
unreasonable" The commission
had authorized the general rate in
crease providing school children
were allowed a Scent per zone rate.
A company official said the COM
mission order for increased general
fares and lower school rates was
"permissive" and would have be-
come effective May g. 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 Warnken, 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 operation:
and that special school fare,
should await a time when Mary
land revenues at least equal the
expenses of such operations"
Mr.. Merrills letter said that "in
our opinion the establishment of 6
3-cent school rate will require fur.
ther substantial increases over ane
above the general scent fare level
We believe that Scent school fare
is unreasonable"
"A special fare will increase tht
volume of school children at thu
time of the peak of the morning
rush period" the letter said. This
would require additional buses ane
manpower with consequent in.
creases in costs. These additiona
costs would create additional losse!
for the compeny's Maryland busi.
ness.
Experience Cited.
"The company experience with
school children loads during the
peak rush hours in the District o.
Columbia demonstrates that the
special school fare in the District
is inequitable. Under the circum-
stances existing in this case WI
see no reason why the company
should be asked to bear the loSse!
resulting from reduced rate fol
school children.
For the foregoing reasons tht
company hereby notifies the com.
mission Gin 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 ir
Maryland by obliging such opera.
ton to be continued at 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 flee
the fare schedule to become eff.
fective last December II. Subse.
quently, the PSC suspended opera.
tion of the proposed tariff for III
days until April 8.
At the time, the case was still IL
progress. and further 30-day sus.
pension put the effective date fol
II the increased rates until Nav O