Evening star. [volume] (Washington, D.C.) 1854-1972, 1937-04-15
|ELGEN WELCOMES
INQUIRY BY HOUSE
NT0UT|L|T|ESACTS
Commission Head Ignores
Criticisms of Transit
Firms Service.
MRS. MASON Is PUZZLED
BY LIQUOR LAW ATTACK
Defends Board Authority on
Debts of Retailers to Wholesalers
and Manufacturers.

and Manufacturers.
A House District Committee inquiry
into the local public utilities act, Or
dered after attacks had been made
on the Capital Transit Co. for seeking
higher rate Of fares, was welcomed
today by Riley E. Elgen, chairman Of
the Public Utilities Commission, which
is engaged in making a valuation of
the street car and bus system.
There is no relation between the
present valuation hearing, compulsory
under the law, and the company's ap-
plication for higher rates." Elgen said.
He ignored attacks made on the
transit company's service. except to
say that the Utilities Commission is
constantly endeavoring to prevent
crowding Of buses.
Puzzled by Liquor Act Attack.
Mrs. Agnes K. Mason, acting chair
man of the Alcoholic Beverage Control
Board, said she couldn't understand
the attack made in the committee
on that section Of the liquor control
act which gives the board authority
to take action against retailers who
are delinquent in payment of private
debts to manufacturers and whole
salers.
This provision is designed to pre-
vent any tie-up between manufacture
ers and retailers or wholesalers and
retailers" she said Il don't believe
the provision should be changed"
Mrs. Mason denied the board was
acting as a collection agency" for
wholesalers and manufacturers, as
charged by Representative Palmisano,
Democrat, of Maryland, but is simply
carrying out the provisions Of the con-
troll act, which she said the board feels
is very workable"
Valuation Never Applied.
There never has been a new valua-
tior applied to the properties alb
sorbed by the Capital Transit Co. in
effecting merger of Washington's
street car and bus system, Elgen
pointed out There is no relation
between these valuation hearings and
the recent application of the Capital
Transit Co. for higher rate of fare"
he said. The question of a valua-
ton has been considered since 1881
and has been repeatedly demanded
by the Federation of Citizens Asso-
Citations. A valuation has to be de-
termined under the law"
During the present hearing officials
of the Capital Transit Co. had as
serted during arguments with COM
mission attorneys that the company
would be unable to learn what it re-
garded as reasonable return" on
the valuation that is likely to be
agreed upon.
Oppose Overcrowding.
Commission members today also
defended their position opposing the
crowding of buses and street cars
during rush hours as cited by Schultz.
In no other CITY," said Richmond
B. Keech, vice chairman of the COM
mission, lis there an order against
the croWding of buses and cars, but
there is such an order in effect in
this city" He said the commission
constantly is striving to reduce the
traffic load by feeding in additional
buses along routes during rush hours.
The revenue passenger figure of
26,377,110 for the two months of
January and February of this year
is nearly double the number of such
passengers carried in the correspond
ing months of 1888, which was IA
795,260. That was about the time
of the merger
Relative passenger carriage will be
studied by the commission when it
conducts hearing later on the tran
sit company's application for higher
fare.
A. B. C. Board Defended.
In suspending permits of retail
Licensees who are delinquent in private
debt payments, Mrs. Mason said the
A. B. c. Board is simply carrying out
the provisions of the District LIQUOR
control act.
At the same time she said the
board would cooperate with the
House District Committee in It's in
vestigation of the alcoholic beverage
control law.
Mrs. Mason, who is acting board
chairman in the absence of George w.
Offutt, called attention to two sec
tons of the law which prohibit
manufacturers and wholesalers of
liquor having substantial interest in
the business of retail licensees. In
these two sections it is set forth that
reasonable extension of credit" by
manufacturer or a wholesaler to re-
tail licensees shall not be prohibited.
Explains Boards Action.
Explaining the boards action, Mrs.
Mason said:
About a year ago the board dis
covered retailers were indebted to
manufacturers and wholesalers 50
much that a defining of the term
reasonable credit was found neces-
sary. In hearing conducted by the
board, wholesalers unanimously agreed
on Is days as a reasonable time limit
for payment of debts, with 80 days
set as a maximum time limit.
AT a subsequent hearing retailers
agreed to the arrangement. The rest
of the year was spent in trying to
educate the retailers. Retailers re-
ported delinquent in payments were
warned, but no acton was taken
against them at that time.
"on March l, this year, the board
found there were As retail licensees
who were delinquent. Thirty of these
cases have been heard by the board,
which ordered one-day suspensions
for Is and served warnings on the
other Is. The remaining is cases
are still pending"
Mrs, Mason said the hoard,s q ctiny