Evening star., 1953-09-02
Transit Witness
Hits Plan for
Permit andCas|1
Discarded After
TrioI in 10 Cities
Engineer Testifies

AAG 4AAd4 WAG11cSS 1OI GL1G Ndp1"
tai Transit Co. was to return to
the stand today in the fare in
crease hearing before the Public
Utilities Commission.
Gilman Smith, a transit engi-
neer from New York, began his
testimony yesterday by ex-
pressing the view that the per-
mit-plus-cash plan, which has
been suggested during the pro-
ceedings, is attractive neither to
the company nor the public.
Public witnesses were to follow
the company's presentation.
The transit company is seek
ing to abolish the weekly pass
and to increase cash fares to 20
cents, and token rates to five
for 95 cents.
Edward A. Roberts, a New
York conSultant, who was a
commission witness, suggested
a weekly permit that would cost
IS cents and entitle passengers
using it to pay only 10 cents
cash per trip.
Conclusion from Studies.
But Mr.. Smith said his studies
indicated the weekly permit is
less attractive to the public than
the weekly pass and is pur-
chased only by those who can
achieve lower fares through its
use.
He said there is no apparent
tendency on the part of paSsen-
gers to make increased use of
the permit system as it becomes
more familiar to them.
OF 10 cities that had weekly
permits in effect in 1945, he went
on, all have eliminated them
from their fare structures. In
Washington, such a system would
be subject to the same borrow
ing and other abuses as the
weekly pass, he said.
In addition, it has no conven-
fence factors, either for the COM
pany or the passengers, he
pointed out. Besides the original
purchase and the payment for
each ride, the permit would re-
quire more transfers and increase
costs, he said.
Sees Disadvantages.
I'm my opinion" said Mr..
Smith, "the permit has all the
basic disadvantages of the pass
and has not the operating ad-
vantages. I cannot find that
the permit has any operating
advantages. In fact, it has op-
Grating disadvantages"
He predicted that the permit
would be purchased by people
who now customarily ride the
number of times per week neces-
Sary to reach the break -even
point, and that they would not
be induced to take extra rides
in view of the extra cost.
He said the situation in which
the permit would induce rides
would be on the part of the oc-
caSional rider who was able to
borrow permit and get a ride
for 10 cents. The effect, he
added. would be that the oc-
casional rider would be charged
less than the regular rider.
Mr.. Smith said that, in Kan
sas City, Mo-, revenue declined
9.9 per cent after the weekly
permit was instituted. With an
increase in the price, the revenue
dropped S.4 per cent, he said.
See 20 Cents in Line.
The witness also said that a
20-cent fare today is no more
out Of line with general costs
than Is cents was a few years
ago, or 10 cents in previous
years. He reported that, of 80
cities, eight now have 20-cent
fares and six have requests in
for at least that much, not in
cluding three which have zone
fares.
He disagreed with Mr.. Rob-
ertS' use of a national loss aver
age Of one-third of revenue
passenger for each ! per cent
OF fare increase. He said Wash
1ngton must be judged on it's
own conditions, and that the
shrinkage factor would be higher
here.
Mr.. Smith pointed to 10000
parking spaces in the central
business area here, as compared
with $4,000 in the loop area of
Chicago; to the wide streets
here and the high percentage of
automobile ownership.
Competitive Situation.
These factors tend to under
score the competitive situation
presented by private transporta-
ton, according to his testimony.
Under questioning by F. Gloyd
Await, transit company attorney.
Mr.. Smith also took issue with
the future earning prospects of
the company as seen by the
commissions executive account
ant j. w. Falk.
This was on the score of the
normal decline of passengers,
which Mr.. Smith estimated
would produce 81 million less in
the future annual period at the
present fares than was shown by
Mr.. Falk.