Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-08-22
Bus Fare Hike Designed
ToProduce SmoII Profit

)mOII FTOTU
about 81 per cent of the total
before actual profits could be
counted.
Commissioner Samuel Spen-
Ger noted that any profit GER
1tainly will not be excessive" and
said he believed the company
was entitled to one.
Wolfson Remark Regulated
| Reminded that Louis E. Wolf
son, Capital Transit board chair
man. has said he was not inter-
ested IN taking "a nickle" out Of
Washington In profits. Mr.. Spen-
Ger said company officials had
'repuoiated" that statement dur
ing negotiating sessions.
Unless they say they don't
want q profit" he added. lit Is
not up to us to deny them one"
George E. c. Hayes, Public
Utilities Commission chairman,
also said the idea the Public
Utilities Commission followed In
Recommending each of two sets
iof fare figures to the city heads
Saturday was that the COM
pany should not be operating
without some possible earnings"
However, Robert E. Weston, the
third commission member, said
he dissented from both fare rec
concentrations because my COM
Iputation Of company expenses
lon the basis Of facts before US
differed radically from the COM
putation. sold to the Com
missioners."
/ IF the District really had had
a gun pointed at its head, 1t
might have had to accept any
thing to get the buses back, /"
Mr.. Weston said. But If the
company had refused to enter
into a reasonable contract, they
would have violated their fran
Ichise and we could get relief
from the courts"
/ Alternative Proposal Made
! The first set of fare figures
recommended by the commission
proposed a Scent increase in
tokens and only q 10-cent raise
in the weekly permit cost. But
when it became obvious in nego-
Itiations that that formula would
mot produce a settlement, q
'Iraise to 80 cents in the permit
cost was recommended by the
untilities body and approved by
the Commissioners.
i Mr.. Hayes said he also was
mindful that the company de-
served q cushion to keep out
lof the red" in the event the
!; flare revenue estimates were OF
1T seemed to me-" he added
that the possibilities Of a re-
turn to the company were mea-
ger, at least. II was wrong
perhaps it was better to err
a little in that direction to
get the system back into op-
Ieration."
Wanted to Break Even
! Capital Transit officials, mean
while. indicated they were more
interested in a break-even op-
Ieration than a profit.
j. A. B. Broadwater, company
president, without mentioning q
profit, said in statement that
; the city heads had promised to
consider another upward ster
in the fare structure If the new
rates fail to produce sufficient
revenue to keep the company
from operating in the red"
Another company official said
the city heads had promised to
make this review at the end OF
: October.
Company officials made plain
that they had little faith in the
Public Utilities Commission esti-
mates, but declined to come up
with any estimates Of their own
Passenger Drop Is Problem
One Of the most important
and unknown-factors, is how
many passengers the system will
lose as a result of the strike
and normal declines.
The utilities commission re.
portedly used only q 3 per cent
drop in figuring its estimates
one company official said. HI
refused to make his own predic.
ton, but j. Godfrey Butler, Cap.
ital Transit personnel director
told reporters earlier last weel
the company looked for a droI
OF between 10 and 80 per cent
The extent of passenger de-
crease also will determine how
far the company may go in seek
ing to curtail service. Any cut
backs must be cleared by tn,
Public Utilities Commission
Failure to abide by commission
decisions would entail big dali,
penalties.