Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-09-15
Maryland PSC
Transit
Fare Raise Plea
FIonogon Sees 1877
Increase in Average
Cost to Passengers
By GENE GOODWIN


Cost to Passengers
By GENE GOODWIN
BALTIMORE. Sept. i5-The
Maryland Public Service Com
mission today was considering
a plea from Capital Transit Co.
for higher fares on its Maryland
lines to keep from going further
In the red.
The Maryland commission or-l
dinarily waits q week to 10 days
before announcing q decision onI
such an application, q spokes-
man said after yesterdays two
hour hearing here.
James H. Flanagan. Capital
Transit vice president and con-
troller, was the company's only
witness. He said the increase
the company is seeking In Mary
land would mean an 10 per cent
boost on the average Maryland
fare.
Seeks New Rates
The company is seeking q new
rate schedule for its Maryland
lines Of - cents for the first
zone. 8 cents for the second and
third zones and 7 cents for the
fourth zone. Present rates are
10 cents for the first zone and n
cents for each succeeding zone.
District fares went up three
cents per token and 20 cents on
the weekly permits after settle
ment last month Of q 52-dayI
transit strike.
Mr.. Flanagan said the COM
pany needs the fare increases
primarily to pay the higher labor
costs resulting from the strike
settlement.
But he emphasized that the
Maryland lines would continue to
be a losing proposition for the
company.
Passenger Resistance
He said the company expects
that it would take In $3.50 less
In passenger fares even with the
higher rates during the coming
year than 1t collected In Mary
land fares last fiscal year.
This results. he said. from an
estimated 6 per cent decline In
because Of the strike, O
4 per cent normal decline" and
a 81 decline because Of passen-
ger resistance to the new fares.
The decline In Maryland pas
senger revenue In the first two
weeks after operations resumed
on August 20 was about "a per
cent, Mr.. Flanagan said. but he
expects that this decline viii
average out at 6 per cent over
the coming year.
The company showed total pas
senger revenues in Maryland for
the fiscal year which ended last
June 80 Of $1,000, 596. MFR. Elan.
agan said. This compares to $25.-
4i0,500 In gross passenger reve-
nue. for both D. c. and Maryland
lines in the same period. he
Points to Losses
Mr.. Flanagan said the COM
pany would expect to collect a.
total Of $1,009,214 in Maryland
fares If the increases are
granted.
When expenses, taxes and de-
probation are figured in. the
company lost $342.652 on its
Maryland lines last fiscal year.
the witness said. Under the pro-
posed rate schedule, the COM
pany still anticipates a loss on
It's Maryland lines Of $342.895.
This will result from the de-
clines in passenger volume, he
said. and despite some service
q reduction in some
officers salaries and lower gaso-
line costs.
Mr.. Flanagan declined to
elaborate on what further cuts
In service the company planned
for Maryland.
Statements Read
William B. Mckinney, clerk to
The Montgomery County Council,
was the first of four witnesses
who appeared against the Capt.
tai Transit application.
Mr.. Mckinney read a resolu-
lion from the council asking that
the hearing be postponed or
continued until the legislatures
Of Maryland and Virginia and
Congress can establish an inter-
state transit commission for the
purpose Of promoting in the pub
lie interest an overall transporta-
ton system for the entire metro
politan Washington area"
Mr.. Mckinney also read a.
statement from Montgomery
County Manager M. L. Reese in
which Mr.. Reese stated:
1.-THE crying need for more
and better public transportation
In Montgomery County is under
lined by the existence Of good
in other counties border
ing upon the District Of Column
bia where complete schedules