Evening star., 1955-09-04
Fare Boost Unnecessary,
Weston Says in Dissent

on August Is, 1855,
at the sum Of $1.266. 900.
y = -
Theory Not Applicable
The theory Of the recommen-
dations and authorization" was
that Capital Transit should be
granted increased fares sufficient
to Offset increased labor costs.
with reasonable cushion" ]
t thoroughly h agree with this
theory. However. I flnd that 1t
has no application to Capital
Transit, because, in my opinion,
I'd assuming that any in
crease at all is warranted, the
drastic increase in fares will pro-
duce no more revenues than q
moderate increase in the token
rate would have produced;
CD Capital Transit's gross ex-
penses for labor win probably not
be increased 81, 1886. 900. or at all,
by the new labor contract
CD proper revision Of Capital
Transit's statements Of revenues
and expenses to reflect economi-
cal and efficient operation indi-
Gates that the Company should
have been able to meet its ex-
penses and provide a large re-
turn to the stockholders on the
pre-existing fares
Wage Boosts Absorbed
statistics prove that the
company consistently absorbs
wage boosts by reductions in
service and in numbers of en-
ployes. and that the present wage
increases should not increase the
company's expenses by $685.
600, or at all.
$3,710.000 in company
accepted estimates Of wage in
creases have been absorbed since
1850, while labor costs have
actually shrunk by $643, 1851
In the atmosphere Of crisis
which prevailed on August 81
1855. induced by the company:
apparent unwillingness to accept
a labor contract and to ed the
service stoppage then In its SIC
day, we had no opportunity Il
consider the justification. if any
for the company estimate oi
increased labor costs. The com.
pany offered no justification. /
therefore. base my conclusion or
the records Of the commission
On this basis. I would allow
nothing for Increased labol
costs" in recommending fares
1t must be emphasized thai
the l0.1 per cent increase II
fares :. Is estimated to prod0ct
only Ga per cen. increase ir
revenues principally becaus,
the higher fares drive more anc
more people away from the us,
Of transit and to the use O.
private automobiles
Diminishing Return"
We will now have, at the ex.
pense Of the Washington com.
munity and to the detriment ol
our transcendent interest In pre-.
serving and encouraging mas.
transit, a test Of whether tn,
new fares break through thu
diminishing. return" ceiling
The test win be conducted under
circumstances peculiarly un.
favorable to the interest of tht
community in demonstrating (tt
prospective investors In a new
company the actual fact that
Washington is basically a 'gooc
transit town" I predict thar
resistance to transit riding dur,
ing Capital Transit's termina
year may well be sharply in.
creased by (a) the sudden
rather than gradual, approach
to the straight zoe fare; (b) tn.
pervasive anti-Capital TRANSIT
sentiment in our community re,
sulting from the statements anc
financial policies of the Com.
pany's management; (c) new
riding habits acquired durins
the 52-day stoppage of service
beginning July /. 1855; Cd fail.
ure to innovate service attrac.
tions. suggest that the antic.
ipated realization of $1,364 .OOC
Increase in revenues from. the
Increase in fares, which is basec
on the experience in conven.
tional situations (especially
gradualism in fare increases
may we'll be overstated: and that
the actual realization may vel
be no more than the estimated
1881 900 revenue increase which
would have been produced by the
adjustment of tokens from 16c tt
18c each, and weekly permit
from 75c to 80c.
With this preliminary state.
ment concerning the amount tc
be realized from the increased
fares. proceed to state the
revenues which the compan,
should have been able to realize
under the previous adult far,
structure. -. In fairness to the
company. I have made my calcu.
lations on the system" basis
thus giving the company thu
benefit Of anticipated losses or
operations in Maryland, l have
also used the highest estimates
of normal decline" in adult
passenger revenues testified tt
in this case, and have allowed
for this normal decline" during
the strike period.
$24 Million Revenues
-. the company should realize
$24. 4.091 ,099 of operating revenues
during the year ending August