Evening star., 1950-04-06
PUCHead Asks
Retention Of
Transit Pass
Car Company Holds
1t Is Subsidizine
Federal Agencies

II IS SuDSl0lZln9
Federal Agencies
Chairman James H. Flanagan
OF the Public Utilities Commission
wants to retain the weekly transit
pass.
His statement was made after
the company testified it feels it
is subsidizing Government agen-
cies and large concerns. which
buy passes for use in business.
These developments came as the
company completed presentation
Of it's case for higher fares yes
terday. Today the hearings were
in recess until April 26 to give the
commissions staff and the Fed
Grafton of Citizens Associations,
which was intervened in the case,
time to study the company data
and to formulate their own pre-
sentations.
15-Cent Cash Fare Asked.
The companys requeststo elimi-
nate the $l.75 weekly pass was the
subject of much discussion in the
two days of the hearing. The
company also is asking for a 15-
cent cash fare. instead of 13 cents,
and authorization to sell six tokens
for 30 cents. instead of three for
IS cents.
j. E. Heberle. company con-
troller. was under cross-exami-
nation as yesterdays session was
drawing to a close, when Chair
man Flanagan took over the ques-
tioning. Mr.. Flanagan led the
transit official into a discussion of
the uses of the pass the company
contends are are not legitimate
and which are causing it to lose
money. Then Mr.. Flanagan said:
Gould not some of these evils
be eliminated? The abolition of
the pass is a problem that gives
this commission most concern. 1t
is not one-sided proposition, and
1 would have to know both sides
before I would vote for elimination
The commission wants to ex-
plore all possible means of pre-
serving the pass. 1t would like to
find a way of preserving it for its
legitimate use."
1000 Sold Weekly.
Mr.. Heberle said about 1000
passes are sold per week to Fed
eral and District Governmental
agencies. some of them on credit.
Mr.. Heberle added that, after the
pass is used in business during
the day, frequently some staff
member uses it at night.
II have no quarrel with the
breadwinner who uses the pass to
go to and from work in the day.
time and then he, or another in
his family, uses it at night" Mr..
Heberle said. II do object to
those instances where the house
holder uses the pass in the day
and then the maid takes it home
at night"
Earlier Lloyd B. Harrison, coun-
sci for the commission, cross
examined Mr.. Heberle on some of
his exhibits. He brought out that
the company's contention for a 10
per cent rate of return applies to
the figure it considers the proper
base-$43,764,571.
This would provide an operat-
ing income of $4,376,457, whereas
it estimates that the fares for
which it is asking will yield an
operating income of $1,959,879.
Mr.. Heberle said that to obtain
a 10 per cent return the company
would have to have a gross in
crease of $6.8 million in income,
which could be achieved only with
straight cash fare of more than
IS cents.
Figures Gross Increase.
He figured that the fares the
company has requested will yield
a gross increase Of $2,779,864.
Mr.. Harrison also questioned
Mr.. Heberle about the estimated
Sc per cent reduction in service
in the coming year. On some
lines service already has been cut.
Mr.. Heberle said the reductions,
owing to decreased patronage,
have been or will be put into ef-
feet on the Mt. Pleasant car line,
the car service between Four
teenth street NV. and Potomac
Park and these bus lines: P street.
LeDroit Park, LIZ and La on
Connecticut avenue, and Benning.
In the case of the Benning buses,
however, the mileage reduction
will result from the elimination
of detours, shortening the route.
Raymond A. Seelig appeared
before the commission yesterday,
representing the Transit Riders
Association. which is opposed to
forced radio listening" He said
the company sought to convey the
impression the income from radio
advertising would help prevent
fares from advancing, but he
termed the income about as USE
full to the company as a handful
of moonbeams."