Evening star. [volume] (Washington, D.C.) 1854-1972, 1949-12-20
No Fare II Can Suooest Will Fill Consabu|aY Rallies
Income Needs, Company Fears Ito Seize Man on Roof

Income Needs,
Continued From First Page)
suit of the fare increase Of Octo.
Der, 1913, it is paying 81 a share
But income, boosted by thai
fare increase. Is declining again
Mr.. Heberle said bluntly that
how the company will obtain the
income needed is mystery.
He estimated that to increase
the cash fare to Is cents, with
two tokens for Is cents and elimi-
nation of the weekly pass. would
yield a net of $325.0oo. This figure
he estimated, could be increased
to s778,OO0 under the same fare
scale, but selling tokens at four
for SO cents, which would cut the
token sale substantially and en-
courage the payment Of cash fares.
Both these estimates, however,
were made on the basis OF the
former wage rates.
Fear Taxi Competition.
The company has a fear. ap-
parently well-founded, that it will
encounter diminishing returns. II
| it raises its fare in competition
with taxicabs and private auto
mobiles. If the fare is raised to Is
cents, it is quite probable that
two persons making a short trip
would take a cab, each spending
IS cents more than the carfare
would be. One result would be that
the transit company would tend
to lose the more profitable short
haul business and get the less
profitable long-haul riders.
The company points to the
number Of taxicabs in Washing
ton to demonstrate the danger Of
higher fares to the company's
business. The Public Utilities
Commission put the number OF
cabs at 8.529 in 194s. and the
transit company estimates the
number this year at $500.
The company says. also, that 1t
actually ranks second among local
carriers in total revenue. It
reasons that each cab. to operate
must gross about $4,000 a year
The total take of as few as 5000
cabs, Therefore, would be 100000
900 a year. Against this, the total
revenue of Capital Transit for
the year ended last June 80 was
$28.144,o85.
Another competitor is the
private automobile. The estimate
of the number registered this year
in Washington is 149.473. In 1945,
q year of war shortages, the num-
Der was only $4,000.
Aside from the fear of running
into diminishing returns, the
transit company already Is meet
ing a disturbing decrease In
patronage.
Even before the fare increase
of May II, 1947, there was a loss
| of patronage running at 6.2 per
cent a month, in comparison with
business in the corresponding
months of the preceding year
This was considered normal post
war development.
Further Decrease Last June.
But last June there began q
further decrease in traffic. The
drop went from 6.2 to rs per cent
The result of the May, 1947, fare
change brought its own trafnc
decline. The company figures II
at 40 per cent, and it was on top
of the. 6.2 normal" decline. On
that occasion the sale of tokens
was eliminated, the price of the
pass was raised from $1.25 tc
$3.50, while the cash fare re-
NAMED at 10 cents.
The next increase, which sci
the fares paid now. came on Octo'
Der 81, 1948. The cash fare wa.
increased to 10 cents, with tire.
tokens for IS cents, and the cos
of the pass was raised to SITS.
The decrease In patronage dus
to the fare change was figured al
3.5 per cent, also on top Of ,tht
then ruling normal" 6.2 decline
The rs normal" decline, which
began in June. is reflected In tn.
Icompany's net earnings. In tn,
first six months of this year, tn,
met was $517,869. In the flv'
succeeding months 1t was onl,
l$129,869.
Figures on Decline.
How the number of passenger
; has declined in the period Of thest
two fare increases in shown b,
these figures:
In the IL months before TIT
May. 1947, fare increase the mum
Der of revenue passengers totalee
404, 041 ,657. In the IL months
after the 1913 fare increase, tn,
passengers totaled about $4,000.
1000 a decline Of about $4,000. 00t
passengers. ..-
What is more, the company ex'
poets this decline to continue. II
the IL months ended last October
81 passenger receipts amounted
to $27, $685. The company esti'
mated that in the 12-montf
period to next October 81 the re-
ceipts from passengers will b.
$25, ISL 26. It held that thi
!; figure should be $1,753,820 higher
, for a proper return, but this wa
at the old wage costs.
In addition to the fact tina
higher fares mean fewer riders
the company has amassed expert
, Ience in how even slight change
affect the riding public. For NOR
. than i've years, up to January
, 1913, the company sold six token
lfor so cents. When 1t was ordere>