Evening star., 1942-12-10
PUG Disagreement
-
Flares Again Over
Transit Earnings
Honkin Reps FIonoeon
For Giving 'PersonoI' Views
In Letter to Senutor

The smouldering disagreement
between Gregory Hankin, minority
member Of the District of Columbia
Public Utilities Commission, and the
majority members nared again to-
day. T.
Mr.. Hankin charged that Chair
man James H. Flanagan had written
letter to Senator Burton, Republic
can, of Ohio of the Senate Trans
portation Subcommittee in reply to
an inquiry on the local transporta-
ton situation which gave Mr.. Flana-
gan's personal views and not the
views Of the commission.
Mr.. Hanxin made his charges be-
fore a 'meeting Of the Central Busi-
nessmen's Association last night,
where he also revealed that he had
made a private investigation Of the
financial operations of the Capital
Transit Co., which he said confiicted
with reports Mr.. Flanagan included
in his letter to Senator Burton.
Mr.. Hankin said his investigation
showed the transit company was
making return of at least 1877 per
cent.
Flanagan Makes Reply.
Mr.. Flanagan said:
Senator Burton wrote me asking
for my comment about regional
transportation problems which his
subcommittee was considering. I
replied, giving my view and I think
it was clearly understood that they
did not represent any views or
actions adopted by the PUC."
Mr.. Hankin said he also wrote
Senator Burton that he learned
Monday for the first time Of Chair
man Flanagan's letter and that Mr..
Flanagan had told him his COM
ments represented his personal views
and did not constitute an expression
Of opinion on the part Of the COM
mission. The Hankin letter con-
tinued:
"It is unfortunate that this should
be so. because If the chairman or
any other member OF the commits
sion should treat such problems as
his personal matters. rather than as
the business of the commission,
then the commission would not be
acting as the administrative body
created by act of Congress, and
there would be no telling how many
matters Of public concern would be
disposed of as matters Of private
business"
Cites Gas Rate Case.
This letter of the chairman is
especially unfortunate, coming as
it does on the heels of the gas rate
case, where in the dissenting opin-
ion pointed out that the decision
was not the action of the commits
sion, but Of the commissioners act
ing individually"
Mr.. Hankin was not pleased with
comments Chairman Flanagan
made regarding the bill Mr. Hankin
has proposed which would give the
PUG jurisdiction in transportation
operation beyond the Districts
boundaries
Mr.. Flanagan said Mr.. Hankin
had not yet presented him a copy
of the measure.
Mr.. Hankin included in his letter
to Senator Burton figures on the es-
tlmated value of the transit COM
pany and reports on expenses and
income, which. he said showed that
without any changes in accounting
charges the company was making a
return Of 785 per cent. Mr.. Flan-
agan said the commissions chief
accountant, v. A.. McElfrosh, esti-
mated return of 64 per cent for
the year ended September 20.
Mr.. Hankin said he found reason
to suggest deductions which he fig
ured would show the company is
making a rate of return at least"
12.7 per cent.
He would disallow as operating
expense 81 $50, 900 for tax payments,
to limit income tax exchanges to 10
per cent (whereas the PUG major
ity in the gas company case allowed
80 per cent? and he also suggested
reduction in the amounts reserved
by the company for payments of in
juries and damages and suggested
elimination of reduction of other
charges for donations, contributions,
club dues, cost of testimonial din
ners-promotional expenses and re-.
duction OF salaries of company Of
ficerS.