Evening star., 1952-07-24
Public Relations
NotGood, Transit
Official Admits
But 1t Doesn't Lessen
Business, Company
Tells PUG Hearing

Tells PUG Hearing
A Capital Transit Co. official
today admitted that the company
did not have very good public re-
lations in the Washington area.
Robert E. Harvey, transit COM
pany vice president and controller,
conceded this point under cross
examination before the Public
Utilities Commission. The PUG
Is continuing its hearing on re-
quest of the transit company for
higher bus and streetcar fares.
Capital Transit has requested
rate hikes that would mean a IT.
cent cash fare, tokens at six for
IS cents and discontinuance of
the $2.10 weekly pass.
Asks Reasons for Decline.
PUG Counsel Lloyd Harrison
opened today's session by quiz
zing Mr.. Harvey on the reasons
for a decline in the number of
transit passengers here.
He cited unfavorable publicity
which the company has received
since the first of the year. This
publicity, Mr.. Harrison pointed
out, came when the transit COM
pany declared special dividends
a day before the PUG increased
the cost of the weekly pass from
50 to $2.10.
Mr.. Harrison brought out that
j. A. B. Broawater, transit COM
pany president. later delivered his
much publicized speech before the
Board of Trade in which he SAID
that if higher rates were not
granted the company would prob
ably have to be taken over by the
city. Mr.. Harrison said that this
was followed by an investigation
of transit affairs by House Dis
trict Subcommittee.
Don't you think those things
had some effect on the number of
passengers using the lines?" Mr..
Harrison asked.
Doubts Effect of 1t.
Mr.. Harvey said he did not feel
the bad publicity had any effect
on the number of passengers. He
pointed out that last year during
a period of unpleasant publicity"
the number of passengers in
creased and did not start the
downward trend until the end of
the year.
"Are good public relations essen
tial to the operation of any public
utility during a time of rising
costs?" Mr.. Harrison asked.
Mr.. Harvey answered:
"It is desirable and nice to have
good public relations. All of the
transit companies around the
country have found it impossible
under present conditions to
maintain good public relations.
But I don't think it has had any
effect of the number of riders"
Mr.. Harrison then switched to
a discussion of the weekly pass.
which the company wants to dis
continue.
The transit company yesterday
filed sample bus and Streetcar
fares which would be necessary to
continue the pass. These samples
were presented at the request of
P. U. c. Chairman James H. Flan-
agan but the company still insists
that it does not want the pass in
its fare structure.
Rate Schedules Proposed.
These samples were as follows:
If the proposed 17-cent cash
fare and six-for-95-cent tokens
were to prevail, a So weekly pass
would be required.
A $2.75 pass would call for an
18-cent cash fare and three-for-
50-cent tokens.
A $3.50 pass would mean an 18-
cent cash fare and five tokens for
IS cents.
A $2.25 pass would mean 20
cent cash fare and five-for-85-
cent tokens.
All of these figures are predicted
on a rs per cent rate of return
which the company contends is
fair and reasonable.
The PUG has shifted the hear
ing to the air-conditioned Wash
ington Gas Light Co. auditorium.
The session yesterday began at
the District Building but ad-
journed to the air-conditioned
quarters when the heat became
oppressive.