Evening star., 1952-08-05
Weekly Pass at $3.50 or $2.35
And Cash Fare of Is or17 Cents
Is Transit Proposal by PUG Aide
Either Plan Gives
Firm Income Rise of
More Than $500, 900
By John w. Stepp

OOUu SASHH
The accountant of the Public
Utilities Commission today rec
commended two alternative fare
scales which would provide the
Capital Transit Co. with additional
yearly revenue of from 1851 ,492
to $S78,067.
The proposals were made to the
PUG by its executive accountant.
William Falk. In past cases, the
commission generally has gone
along with the recommendations
Of it's accountant.
The first alternative calls for a
17-cent straight cash fare, tokens
at four for 60 cents and a $2.35
weekly pass.
Mr.. F'alk's second proposal
would fix the cash fare at 16
cents, tokens at four for so cents
and $3.50 pass.
Regarded as Fair Rate.
The computations are based on
what the accountant regards as
q fair and reasonable rate of re-
turn Of from 6.5 to z per cent.
Mr.. Falk said that either Of his
proposals would more than dou-
BILE the company'S net operating
income. He said he personally
favored the first plan.
Mr.. Falk's suggestion that the
pass be retained came as some
thing Of a blow to the transit COM
pany. In a statement prepared
on the spot at the hearings in
the District Building, company
Vice President E. c. Giddings de-
clared:
1.-THE company felt sure that
Mr.. Falk would recognize the
weekly pass as a discriminatory
fare. We are disappointed that
he has included it in his proposed
fare structure. We are confident
that the commission will elm
mate the pass when it makes it's
decision"
Transit Proposal Cited.
In its petition for rate increases,
the transit company urged a IT.
cent cash fare, tokens at six for
95 cents, and outright abolition
Of the weekly pass. This schedule,
company witnesses testified, would
give Transit a rs per cent rate
Of return. %
Citizens who testified in the
course of the hearings, which be-
gan month ago, demanded, how
ever. that the pass be retained
because Of its convenience.
Mr.. Falk, in his testimony to-
day. recalled the citizens testi-
mony, declaring that the weekly
pass has won a large measure
of popularity and general accept
ance" since its inception in 1888.
He added that the pass speeds
up service.
The pass, moreover, Mr.. Falk
continued, represents 80 per cent
Of total passenger revenues in
Capital Transit's District opera
ton. Conceding q point in the
company's argument against the
pass, Mr.. Falk declared that every
effort should be taken to curb
abuses, such as several persons
using the same pass at different
times each week.
Would Provide SI.6 Million.
Under Mr.. Falk's proposed
schedule the company's present
net operating income Of $743, ,971
would swell to $1,622.038 on the
basis Of his 16-cent cash-$2.50 pass
recommendation, and to 81, SOS. .463
on the 17-cent cash-$2.35 pass
proposal.
The first alternative would raise
the transit company's passenger
revenues to $28, ,638. .428, about $685.
600 more than the second alter
native would provide.
While the company had argued
that it would settle for rs per
cent rate of return, its witnesses
contended that actually 10 per
cent rate of return would be fair
and reasonable. AS Mr.. F'alk
worked out his computations, the
fare structure proposed by the
company actually would result in
a 1908 per cent rate Of return in
stead of the rs per cent rate that
the company witnesses said their
figures came to.
Reasons for Discrepancy.
The reason for this discrepancy
in calculations is two-fold. First,
the PUG accountant figures only
an 8 per cent decline in the num-
Der Of all categories of passengers
pass, cash and token-whereas
the company estimated 10 per
cent declines under increased
fares. Second, Mr.. Falk figured
that the passengers who would
stop buying higher cost passes
would become cash and token GUS
toners to the extent of 18 rides
per week, while the company es-
timated that this category would
provide only Is rides per week.
The PUG accountant testified
that II Capital Transit were to