Evening star., 1952-01-04
Transit Passes to Cost $2.1O,
Plea to Drop Tokens Refused;
Congress Probe Held Likely
Dividend Payment
While Asking Higher
Fare Criticized

The Capital Transit Co. toda.
won a 10-cent increase in tn,
price of its weekly pass, effective
January 20, but lost an attemp
to abolish economy token fares.
The Public Utilities Commission
decision on the company's far'
increase request came as con
greSsional investigation of tht
company appeared imminent.
There also were two other de-
velopments bearing in the transi
situation:
/. Legislation pending at the
Capitol to authorize the Inter.
state Commerce Commission tt
investigate passenger carrier facili.
ties, their adequacy and reason
ableness of fares" in the entire
metropolitan area may be headed
for public hearings soon.
Senate Hearing Slated.
2. Senator Butler, Republican
of Maryland said he still is getting
complaints about curtailment o1
Capital Transit services in his
State and said hearings will be
held on his pending resolution tc
have the ICC investigate that
matter.
District leaders in Congress
stirred by the company's declara-
ton of a $2.4 million dividend
while an increase in rates was
pending, said they would look
closely into the transit firms
affairs as soon as they return for
the opening of Congress Tuesday
The company had asked the
PUG to boost the weekly pass from
50 to $2.75, do away with the
three-for-40 cents tokens and
leave the straight cash fare at
Is cents.
$394,227 More Revenue.
In granting a 10-cent increase
on the pass, the PUG indicated
this would add 1894, ,227 a year to
Capital Transit's yearly gross rev.
enues, or about $180.714 in net
operating income.
The company had sought to
boost its net operating income by
from 100000 to s650,0O0.
The PUG opinion concluded that
Capital Transit earnings under
the present fare structure as esti-
mated for the year ending next
June 80 would be insufficient to
provide a fair return on capital
invested in property used for
transportation service.
Earlier, PUG Chairman James
H. Flanagan said the commission
would not take the dividend pay
ment into consideration in making
its decision in the rate increase
case. Court decisions have held,
Mr.. Flanagan contended, that un-
distributed earnings, as surplus,
belong to the stockholders and
cannot be considered as part of
the rate base.
Neely Expresses Surprise"
Before the PUG disclosed its
rate decision, Chairman Nicely of
the Senate District Committee had
promised to confer with members
of his unit as soon as possible to
determine whether an investiga-
ton should be made.
Expressing surprise at the divi-
dend payment while the firm had
an application pending for a fare
raise, the West Virginia Demo-
crat, in a long-distance interview
from his home declared: THAT
firm has just about reached the
end of the rope on fare increases" :"
He recalled that in a state
ment to The Star before Congress
adjourned last fall, he declared
himself strongly opposed to any
raise in transit prices until an in
vestigation by one or both of the
Congressional District Committees
could find whether a raise was
justified.
At that time, the Senator indi-
Gated he was not ready to an
nounce publicly his plans for an
investigation Of the transit firm,
but he definitely had 1t in mind
then.
Now, in the light OF latest de-
(Soa IT'D ANCTT poUo A2O