Evening star., 1950-04-26
Capital Transit
Sees No WAY
ToKeepPass
Firm Couldn't Find
Practical Means to
Do So, Hearing Told

- LIE 44C6C14Cg N4NC PANoAANAO eA44N
controller of the company, made
that statement as the Public
Utilities Commission resumed its
hearing on the company's applica-
tion for higher fares.
The resumption of the hearing
came just after the company and
It's union employees announced
they had signed a one-year con-
tract to continue the present
wages and working conditions.
These were set last December 1o
by an arbitration board which
gave streetcar and bus operators
a rise of 10 cents an hour, bring
ing the rate to $1.55.
Retroactive to July 1.
The increases were retroactive to
last July /. The company has
cited higher labor costs in its ap-
plication for a fare rise. The new
labor contract runs through June
80, 1851.
James H. Flanagan, PUG chair
man, had asked Mr.. Heberle when
the company completed presenta-
ton of it's case on April s to study
possible ways of continuing the
weekly pass. He suggested elimi-
mating some Of the evils which Mr..
Heberle had said exist in its use,
Testifying today, Mr.. Heberle de-
clared:
II know of no way in which the
weekly pass when sold can be as
sociated with it's purchaser in such
a manner that later when the pass
is presented this association can be
recognized by the operator. When
I say I know of no way, I mean
Of no practical way.
Certainly, photograph on the
pass Is not practical, and any
lesser means Of Identification
would be incomplete, or difficult
of check later on. The sugges-
tions that have been made, either
to punch. the pass for each ride,
or to provide coupons on the pass,
either plan being designed to
limit the number of rides taken
within the week, would in no way
remove the present misuses."
One Of the objections the COM
pany has to the pass is that its
use under certain circumstances
by persons other than the pur-
chaser.
Lloyd B. Harrison, counsel for
the commission, ross-examined
Mr.. Heberle on matters brought
out in his direct testimony earlier
this month.
The company is asking for a
fare of Is cents, six tokens for
80 cents and elimination of the
pass. Present fares are 13 cents,
three tokens for 35 cents and the
weekly pass at $1.75.
Questioned on Fares.
Mr.. Harrison asked Mr.. Heberle
q series of questions to bring out
the latter's estimates on how much
the company would earn If 1t re-
tanned the pass at price of 81
with the other fares 1t is request
ing.
Mr.. Heberle had testified the
fare structure the company is ask
ing for would give it a net operat-
ing income of $1,959,879. He said
this would be a return of 705
per cent on the company's rate
base.
With a 81 pass, he said the rev.
enue would be reduced $4,000
after taxes and the rate of return
would be 5,84 per cent on the rate
base.
The rate base is the amount of
capital the commission recognizes
as invested in District operations
and on which the commission has
held the company may earn up to
rs per cent.
Labor Costs Fixed.
Mr.. Harrison also inquired about
the return to the company If the
fares should be set at Is cents,
three tokens for 40 cents and a So
pass. Mr.. Heberle said this would
bring the rate of return down to
4.74 per cent.
On the matter of the new con-
tract. E. Cleveland Giddings, vice
president of the company, said
This agreement fixes our labor
cost, and If we receive the rate
increase requested this will give
us the opportunity to operate
at a fair and reasonable return
on our investment"
He pointed out that one of the
major reasons rate rise should
be granted was the December
wage award which increased COM
pany costs by an estimated ST.
10000 annually.
Expects Rate to Stay Unchanged.
Alfred A. Colby, chairman OF
the arbitration board which
granted the 10-centS-an-hour rise
was asked to comment on the new
agreement. He said his boards
award was made with the expec-
tation it would hold without
change through the contract yea,
beginning next July I.
THE arbitration board believed
that It's award would go far
toward stabilizing conditions ir
Capital Transit and in the transit
industry generally throughout the
Nation" Mr.. Colby said. "It was
felt. of course, that the company
would receive a fare increase tt
which it clearly would be en-
titled.
THE expectation that the
award here would have a stabil-
izing effect throughout the in
dustry has been borne out by the