Evening star., 1950-05-25
PUG Studies Briefs on Capital ronsis Proposed Fare Rise

The Public Utilities Commission
today had under study briefs from
the Capital Transit Co., the Fed
Grafton of Citizens Associations
and Peoples Counsel John O'Dea
on the proposed transit fare in
crease.
Suggestion for a public trans
portation advisory council" was
included by Vernon v. Baker and
Herbert P. Leeman, of the Fed
Grafton, in their presentation.
They proposed the PUG recon-
mend to the District Commission
ers appointment of such council,
to be composed Of representatives
Of the PUG, municipal depart
ments concerned, the transit COM
pany and business and civic Or
ganizations.
Constructive Program Asked.
The council would be authorized
to consider ways Of improving
public transportation here and to
make recommendations to that
end to the transportation agencies,
the PUG and to the Commis-
sioners.
"It appears that only through
some such action can the public
hope for q surcease from frequent
cutbacks in service and raises in
fare and for the maintenance of
the best possible public transpor-
tation system" they wrote.
The attorneys held that a con-
structive program should be in
itiated and sponsored by public
authority toward arresting and
reversing "the present trend away
from the use of public transporta-
ton facilities"
They pointed out that larger
use of public transportation would
alleviate many of the problems
faced by the city because Of the
increasing volume and use Of
private automobiles.
Company Reiterates Plea.
The Capital Transit Co., in its
brief, reiterated its plea for in
creased fares of IS cents cash,
with tokens sold at six for 80
cents. The company's fares now
are 13 cents cash. with three
tokens sold for 35 cents. and SITS
for a weekly pass. Is is asking for
elimination of the pass.
The company declared the COM
mission Cannot lawfully ignore
the downward trend in revenues
and the rising trends in costs"
Even the fares for which it is ask
ing will not yield the return to
which the company is entitled, the
brief said.
The briefs were the final step in
the fare increase application.
Hearings were completed three
weeks ago. The commission has
not indicated when it will make
its ruling.
McElfreSh Scale Hit.
The Capital Transit's filing at
tackled the fare scale recon-
mended by v. A. McElfresh, the
commissions top accountant. He
recommended Is cents cash, four
tokens for SO cents and a $2.25
pass. The company called these
fares inadequate and confisca-
tory"
1t said that, on the basis of the
$27.5 million at which Mr.. Nc
Elfresh figured that company's
rate base. the fares he recon-
mended would yield only a 6.72
per cent return, or $1,849, ,692. The
company asserted it has shown
through the testimony of its con-
troller. j. E. Heberle, that a mini
mum of 10 per cent return, or
$2,750.000, is necessary to the
company.
The company also said MIR.
McElfresh's fares will not produce
what he estimated. The company
said his estimates is grossly op-
timistic in view of the cold facts
OF experience he ignored indicat-
Ing a substantial loss of revenue
passengers due to the increase"
Conclusions of Citizens.
The citizens federation brief
made these conclusions:
The commission should adopt a
segregation of revenues expenses
and investment applicable to the
District, substantially as made by
the commission witness, with the
addition Of items attributable to
charter operations.
The company's rate base for
the purpose of fixing a return for
the period ending May 81, 1851.
should not exceed $26 million,
and that this should be reduced
further to reflect overstatement of
book value resulting from under