Evening star. [volume] (Washington, D.C.) 1854-1972, 1951-09-25
Transit Official
|0ffers Reasons
ForFare|ncrease
Company Controller
Tells Of Operations
Before PUG Hearing


final witness began testifying to-
day in the fare increase case be-
fore the Public Utilities Commits
sion.
Robert E. Harvey. vice president
and controller. went into a de-
tailed analysis of the company's
operations to support his opening
statement yesterday on the need
for an increase in streetcar and
bus fares.
The PUG hoped to wind up this
first phase Of the hearing today
and then recess while all con-
cerned studied the exhibits pre-
sented by the company.
Straight Fare Sought.
j. E. Heberle. retired vice presi-
dent and controller of the COM
pany. told the commission yester-
day the proposal for a straight Is
cent cash fare, with no tokens.
and a $2.25 weekly pass should
bring in a $1,342.500 annual reve-
nue. increase. according to his
calculations.
Under the present fare struc-
ture, he estimated, IS million Is
cent passengers. 80 million token
riders at three trips for 40 cents,
IS million weekly passes at 81,
and 9 million Scent school fares
should bring in $26,520. 900 over a
years time.
Elimination Of tokens. he ex-
planned, would turn 80 million pas
sengers from 13h-cNnt fares to
$225 passes or lucent cash fares
He estimated the increase, how
ever. would cause loss Of per
cent. or AS million OF these fares
Sees Drop in Sales of Pass.
The increase In the price Of the
pass, he went on, probably would
result in a decrease of 6 per cent
of the number Of passes sold, OF
270 900.
He reasoned that q resultant
1905 million cash fares in the first
year under the new fares woulc
produce revenues Of $l8,075, 900
Decreased weekly pass sales, T..
100000 at 1925. would bring il
$9,5l7,50o. he added, and The
school fares would produce $270..
1000.
Total revenues from cash fares
weekly passes and school fare!
would then amount to $27. 1862, 500
according to his figures.
District Purchasing Officer Ro.
land M. Brennan has suggested tt
the commission that, If tokens ar,
eliminated, strips Of 10 tickets
perforated and printed on tn.
back For Government Use Only,
be made available at q cost Of
$50 for sale to the Federal ant
District governments.
Cites Outlay for Taxes.
He explained that, for the fisca
year ended last June 80, $44,83(
was spent for passes and token.
for District agencies. He said /,
of q departments concerned us.
only tokens.
MIR. Brennan said he did not be.
lieve it would be feasible to dis.
tribute cash and that it might no
even be legal.
The company yesterday present
ed w. c. Gilman of w. c. Gilman
g. Co.. consulting engineers Of New
York City, in a lengthy study O
utility rates of return.
He testified that a fair rate O
return for Capital Transit is no
less than 9 per cent. The PUG
in i945. held that ia per cen
was not unreasonable for the com
Ipany and later indicated 6la pc
cent to be reasonable, but has no
fixed a return in Mr.. Gilman
sense.
He commended that earnings
price ratios of transit companie
are, and should be, higher thai
for electric or gas companies, be
cause, in general, risks in tn
> transit industry are far create
than in the two other fields.
: Citizen Leader Protests.
: The proposed fare increase wa
opposed in a letter to the com
mission yesterday from Daniel 3
Lloyd. president of the American
University Park Citizens Associa
ton. He said his group is on rec
tord in unanimous opposition t,
the boost.
! TOO recently has the compan,
shown highly satisfactory profit
and for too short a time has an!
. change in trend been indicated t,
/. safely predict what earnings will
J accrue in the coming fiscal year,
he wrote.