Evening star., 1943-08-25
ice Heariinq
On Bus Rates
Halted Again
Commission Bans
All Evidence on
Company Finances

The Interstate Commerce Com
mission hearing on trans-Potomac
bus rates was halted for an indef-
mite period today when ICC Com
missioner William Patterson ruled
that all evidence on overall finances
of the four transit companies in
volved was irrelevant
The action delaying the hearing
came only an hour after representa-
tives of the War and Navy Depart
ments and the bus lines had re-
turned following a recess from last
Friday.
The ruling Immediately evoked
from counsel representing the two
departments an appeal that the ICC
reconsider its stand.
Must File Petition.
Col. Ebert M. Barron, chief coun-
sci for the War and Navy Depart
ments in this hearing, told the COM
mission, Il don't see how we can
proceed any further"
Commissioner Patterson requested
counsel to file formal petition re-
questing a reconsideration of the
ruling and set next Tuesday as the
deadline for replies by the four bus
companies.
At that time a new hearing date
is expected to be set.
Commissioner Patterson's decision,
which, in effect, rules against the
theory upon which the Government
was proceeding, followed an attempt
last Friday to introduce the 1912 in
come tax return of the Capital
Transit Co. Counsel for the COM
pany strenuously objected to the in
PRODUCTION of such figures.
Asked Two-Day Recess.
Col. Barron first urged two-day
recess in order that the latest ruling
could be referred Ito our superiors-
the Secretary of War and the Secre-
tary of Navy" At this point Com
missioner Patterson suggested the
formal petition and set the Tues
day date.
Mr.. Patterson stressed that the
ICC did not take formal action
with reference to admission of spe-
ciflc evidence, but said that he had
discussed the matter with his COL
leagues. He added:
Il am now prepared to rule that
In view of the limited scope of the
inquiry, only such evidence as has
reasonable direct bearing upon the
particular services with which we
are here concerned is admissible.
This means, in general, that evi-
dence as to the financial condition
and control, valuation, rate of re-
turn and kindred subjects concern
ing the entire operation of each
of the several respondents will be
considered irrelevant, and imma-
terial to the present inquiry"
Counsel Clash.
The Government has contended
that it Is essential to list, overall
earnings of the Capital Transit Co.
in determining whether the rates
charged to the Pentagon Building
are excessive.
At one point in the hearings E.
Barrett Prettyman, special counsel
for the Capital Transit Co., Jumped
to his feet to object when Capt. Paul
Davis, assistant to Col. Barron, in
timated the company reported one
set OF depreciation figures for in
come tax purposes and another for
the use of the Public Utilities Com
mission.
Answering charge by Capt. Da-
Wis that the bus rates are "discrim-
inatory,'' w. A. Whittlesey, counsel
for the Washington, Virginia &
Maryland Coach Co., declared that
the War Department is seeking to
set up a preferential rate for a GER
tain group, which, in effect, is dis
criminatory."
The Government also had re-
quested the Capital Transit Co. to
supply it with breakdown of its
earnings during the first six months
on this year, breakdown of depre-
citation accruals last year and the
earnings of the two routes operating
to the Pentagon Building.
Commissioner Patterson ruled
that the transit company had only
to submit the last item Mr.. ~Pret-
lyman indicated this would be done.
Commissioner Patterson ruled ad-
verSely on one of two motions sub
mitted at the outset of the hearing
a week ago by H. E. Ketner of the
Virginia State Corporation Coun-
sells office. He overruled motion
for the establishment of a joint
board to hear the case and deferred
action on a motion questioning the
Jurisdiction of the ICC in the case.