Evening star., 1960-09-16
Trunsit's Plea
orAnother Rute
Rise Is Opposed
BY GILBERT GIMBLE
Star Staf Writer

Two District Public Utilities
Commission members said to-
day they would favor a subsidy
for D. C. Transit System rather
than another fare increase.
George E. c. Hayes, PUG
chairman, and Harold A. Kertz,
a commission member, said,
however, that Congress would
have to grant the subsidy. Even
If such a move is made, they
said, it probably would not be
in time to affect the transit
company's latest petition for
a fare increase.
D. C. Transit asked the
PUG on Wednesday &C allow
an increase in the price of to-
kens from five for 81 to four for
95 cents. The 25-cent cash fare
would remain the same, as
would the 10-cent school fare.
A final decision on whether
D. C. Transit should be given
any fare increase at all must
wait until the PUG holds a
public hearing on the COM
pany's request. The hearing will
be held in the District Building
starting September 26.
The two PUG members en-
phasized that their views on
the subsidy matter should not
imply any prejudgment on the
transit firms bid for the fare
raise.
The company was granted a
cash fare increase from 20
cents to the present 25-cent
rate in March.
School Fare Subsidy
Both Mr.. Hayes and Mr..
Kertz said they believe some
form of school fare subsidy
would provide a better alterna-
tive than continuing a spiral of
increasing fares leading to de-
creaSing transit patronage and
further fare increases.
The PUG does have power
to grant the transit company
two tax exemptions.
PUG members point out
that D. C. Transit probably
will receive one of these reve-
nue. benefits this year-a saw
ing of about $380,000 in motor
vehicle fuel taxes.
The company. had to pay the
gasoline tax-plus a 20 per cent
penalty for late payment-last
year. The exemption applies if
the transit firms net operating
income falls below 6.5 per cent
of the gross operating revenue
during the 12-month period
ending last month.
Realty Tax Exemption
The PUG also may exempt
D. c. Transit from paying Dis
trict real estate taxes should
the members decide that the
company'S net operating in
come was insufficient for the
last year. If the real estate
tax exemption is granted, it
would amount to a net savings
for the company of about S48,-
O00 With the fuel tax saving,
some S428,00O would go into
the profit column.
Granting a school fare sub
sldy-a controversial proposal
that has failed on Capitol Hill
in the past-is not within the
PUC's powers.
Earlier this year, however,
the PUG considered propos-
ing legislation which would
give it reserved powers to grant
some form of subsidy in place
of allowing fare increases. The
move was discussed following
the most recent fare increase.
At that time, Engineer Com
missioner A. C. yelling Joined
in approving the idea. but no
move to get the legislation ever
was made.
The present Engineer Com
missioner. Col. Frederick J.
Clarke, said he will have to
study the subsidy matter be-
fore taking any stand on it.
He is the third member of the
PUG.
The two PUG members who
favor the subsidy alternative
feel it is more desirable to have
the. general public help bear
the burden Of maintaining pub
lie transit facilities, since mass
transit operations reduce traffic
congestion, aid the business
community and benefit the pub
lie at large. They feel the entire
burden should not be carried by
transit riders alone.
AS for D. C. TranSit's latest
move for a fare increase, Mr..
Hayes indicated yesterday that
the company may have rough
sailing in trying to win approval
for a fare rise.