Evening star., 1951-11-14
PUG Studies
Capital Transit
are Raise Plea
Hearing Ends us Firm
Reports Operating
Income Down 45%


With a Capital Transit Co. re-
port on hand that its operating in
come is down As per cent since
July. compared to that for the
same period last year, the Public
Utilities Commission today began
considering whether fares should
be boosted.
The drawn-out hearing on the
transit firms request for an in
crease in streetcar and bus fares
closed yesterday.
Robert E. Harvey. vice president
and controller of Capital Transit.
was the last witness. He fled the
company's october financial re-
port with PUG and testified to the
drop in operating income.
Mr.. Harvey said the operating
income for July, August, Septem-
Der and October totaled $232, ,735.
a decrease of $187,304 from that
for the same four months last
year. This is As per cent drop.
he declared.
Period Held Significant.
The four month period is re-
garded as particularly significant
by the transit company because.
on July l, a wage increase went
into effect that will add an esti-
mated SIT million to the COM
pany's annual expenses. Other in
creases in expenses are estimated
to bring this figure to about 81
million annually.
The hearing ended with F.
Gloyd Await, transit attorney.
asking for quick approval of the
requested increase. He pointed
out that the company first filed
an application last July and that
matters have been dragging along
since.
PUG Counsel Lloyd Harri-
son declared the PUG staff,
headed by F. W. Falk, chief &C
countant, felt no increase in the
= fares is necessary. He asked the
commission to rule accordingly.
The report filed with the PUG
+ also included summary of oper-
ations of the transit company for
+ the 10 months ended october 81.
5 Figures on Net Income.
{ The net income for the 10
months was $1,141 ,161. For the
: first 10 months of last year net
= income totaled 37,125-an In
crease of 1922 per cent for this
year.
4 The report showed that during
I the 10 months, the operating rev.
I enues totaled $25,009, ,091-an in
crease Of S1.371 300. or 6 per
cent over last years. Operating
{ expenses totaled $22. .724-an
increase of $884, ,026. or 4 per cent.
4; over that for 10 months Of last
q year. Net operating income was
.e $1,218,366-an increase Of $487.-
n 873 or 66.8 per cent. u
\ \ The number of revenue passen-
# gers during the past 10 months
'. was down nearly 6 per cent. and
o the number of miles operated
. dropped about per cent.
= Transit company officials said
the 10-month summary does not
give the true picture Of what is
facing the transit firm. They
pointed out that the wage in
creases and other increased ex-
penses did not go into effect until
July and that the returns for the
first six months do not show this
factor.
l. Report For October.
n, The report for October showed
n that operating income was $133,-
le 223. a Is per cent drop from the
$ SLIT ,432 of October, 1850.
'o Operating expenses went up 7la
per cent during october, COM
pared to those for the previous
81 October. while operating revenues
10 went up only per cent.
> Net income for October totalled
$113,758, while in October OF last
N year it was $151 ,896-a decrease
IS Of Is per cent from last years
l. figure.
; The company is seeking elm
ination of tokens, now sold three
N for 40 cents, and an increase in
the cost of the weekly passes from
of 81 to $2.25. The 15-cent straight
= cash fare would remain in effect.
In presenting its case, the tram
Of sit company said the proposed
.5 increases would bring it an oper-
ating income of $1,730,375 on it's
; District operations. This would
IL. result in an earning on it's rate
= base of 71s per cent. Without a
fare increase, the transit COM
- pany Said its earnings would
!. amount to AZ per cent in the II
n months ending July 81. 1852.
It. Asked 1919 Rate of Return.
D! Transit officials asked for a
II 10 per cent rate of return as fair
and reasonable.
IL Mr.. Falk, on the other hand.
testified he figured that. at the
. . present fares, the return to the
u company on its District operations
- u in the II months ending July 81,
w. 1852, would total 612 per cent.
~ With the increased fares. he de-
D. clared. the return to the company
;, would be nearly II per cent.
. PUG Chairman James H. Flan-
ST agan gave no indication when the
commission might reach a deciS-
;. ion.
i District Man Indicted