Evening star., 1952-08-21


sit Co. but slightly more than
those recommended by PUG &C
countantS.
They are:
la 17-cent cash fare to replace
the present 15-cent price.
2. Tokens to be sold at five. for
IS cents, replacing the present
rate of three for 40 cents.
8. A weekly pass to sell for $2.40
The weekly pass now sells for
$2.10. The company plan to
abolish the pass was rejected.
The school fare of 3 cents re-
mained unchanged by the PUG
order. This rate was set by Con-
gress in special legislation and can
be changed only by Congress.
Company Disappointed.
The company expressed disap-
pointment with the new fares,
limiting that it might mean an
other request for higher fares next
year.
Pleading heavy losses, Capital
Transit had asked the PUG to
abolish the weekly pass, grant a
17-cent cash fare and authorize
sale of tokens at six for 95 cents.
Rising labor costs were cited by
the company as it's biggest reason
for the need for more income.
The PUG staff offered alterna-
tive fare schedules. One would
have put the pass at $2.35, cash
fare at II cents and tokens four
for so cents. The other proposal
established a pass for $3.50. cash
fare of 16 cents and tokens four
for so cents. Either token pro-
posal would have averaged Is
cents per token. the same rate as
that fixed today.
! Pet. Rate of Return.
The PUG order setting the new
fares also contained a directive
stating the commission considered
z per cent a fair rate of return
on the company's rate base. If
the return goes over z per cent
under the new rates, the excess
must be put in reserve fund to
meet future deficiencies, the PUG
ordered.
The PUG ordered similar re-
serve fund set up in 1947 and
l948. The practice was discon-
tinued, however, as the company's
rate of return never exceeded the
percentage allowed by the PUG
and not a cent went into the
reserve.
The transit company won its
last rate increase last January
when the weekly pass went from
So to $2.10. Other fares remained
unchanged.
Earlier Boost Called Inadequate.
The PUG, in it's decision today,
officially regretted the necessity
for raising the fare again so soon
after the January increase. But
the PUG went along with the
company's contention that the
January increase was inadequate.
The PUG did not estimate how
much in dollars and cents the new
fares would bring the transit
company. Since the fares are a
shade more than the recommended
tions of the PUC's staff, it was
believed the resulting net opera
ting income would be increased by
about 100000.
This would mean a total yearly
net operating income of about SIG
million. The old rates would have
brought in about 100000 net if
labor costs and other expenses re-
manned stable.
Hopes to Avoid New Rise.
The PUG, in drafting the new
rates, said it was seeking to avoid
another company rate increase
plea next year.
1T is the earnest desire of this
commission" the order said, that
a fair decision at this time will
render it unnecessary for the COM
pany to apply for further relief
for a period of several years."
The transit company. however.
did not take an optimistic view of
the increases. E. c. Giddings,
transit vice president, issued this
statement:
THE flares fixed by the PUG is
not what we believe is needed to
meet all expenses including a fair
return. The fare asked by the
company would have been more
equitable. However. we will op-
crate under the new fares in the
(See TRANSIT, Page A-2.)
Car Sells Quickly