Evening star., 1944-01-28
~ = .-3 -A &
Transit Rate
Hearing Denied;
|CI0 Protests
Honkin Dissents
From. PUG Report,
| Charging Deioy

Onor9m9 Detoy
A majority Of the Public Utilities
Commission today denied the request
Of the Maryland and District Indus
trial and Washington Industrial
Union Councils for immediate hear
|ngs on Capital Transit Co. rates,
but promised hearing as soon as
the present investigation of its rate
Of return and charges is completed.
The two CIO councils Immediately
countered with a telegram to Presi-
dent Roosevelt charging "the COM
mission majority is using prolonged
Investigations as a means for evad-
ing their responsibility to the public.
Since you appointed the commits
sioners we are appealing to you to
instruct them to. grant a hearing"
The telegram was signed by Sid
ney r. Katz, secretary atreasurer of
the Maryland District Council, and
Joseph D. Phillips, president of the
Washington group.
Hankin Dissents.
In lengthy dissent to the ma
jority opinion of the commission,
Minority Member Gregory Hankin
charged that the phase pending
completion Of the investigation" had
become work of art in our admin
istrative procedure" Mr.. Hankin
added:
I'm operation and effect, the
phrase has come to mean that when
the consumer petitions for relief
investigations are started, nothing
Of substance is investigated, relief is
withheld, the case Is delayed until
the complaint Is forgotten or until a
change of conditions renders the
controversy moot"
Refer to Order Last June,
Referring to an order of last June
to investigate rates, depreciation
and fair rate of return Of the transit
company, Chairman James H. Flan-
agan and Engineer Commissioner
Charles W. Kutz said that an inves-
tigation was started Immediately
but that because of the gas rate case
1t was possible to assign only one
accountant.
Other accountants were trans
ferred to this work as rapidly as was
consistent with the other duties OF
the commission, with the result that
between the date the investigation
was ordered and December 81, l943
f1ve members OF the staff had de-
voted 404 man-days to this problem
alone the majority stated. THE
progress OF this commission has been
still further impeded by the induc-
ton into military service Of one OF
its most competent accountants"
The PUG, decision then went on tc
state that the engineering staff had
devoted l03 man-days y to studY61
depreciation. adding: 'It is AH
opinion of this commission that r1o
useful purpose would be served In
calling n formal hearing pendins
completion Of the investigation nox
In progress. at which time the nece4s
sary statutory notices of hearings
will be issued" :.
Filed by Labor Groups.
The action Of the commission wal
taken on petition filed on january
by the industrial councils and SUM-
ported by a number of other labor
groups. who called for m immediate
nearing on rates, q reduction OF
rates by Februafy l for the sale OF
weekly passes at 81 and four tokens
Tor 80 cents. Present rates are sl.2s
Tor passes and three tokens for 2s
cents.
In his 40-page dissent, Mr.. Hankin
attacked the Investigation work of
the chief accountant and the enpi-
neering stan. At one point in dis
cussing a report of the chief ac-
countant, V. L. McElfresh, Mr.
Hankin remarked: Whatever NAV
be said about the merits or dement's
OF the report and the theories on
which, 1t Is based, it is evident that
this was not q report on facts test
ing whether there was probably
cause for relief. but q brief attempt
ing to show that there was probably
cause why relief should be denied. y
While Mr.. Hankin admitted that
4O4 hours had been spent in investi-
eating work, he claimed that 1t had
proceeded upon wholly erroneous
theories" and that "the delay occa-
stoned was not at all necessary in
order to determine whether there
was probably cause for relief OF
whether the complaints could be
afforded a speedy remedy"
Sees Petitioners Thwarted.
" - If, contrary to the. purpose
and intent Of our statute" said Mr.
Hankin, "the commission does not
want to lend its administrative aid
to the public, 1t should at least re-
frain from thwarting the petitioners
ef1ortssto help themselves. The COM
mission should not refuse to act in
Its judicial capacity. The least the
commission could do was to make
its data available to the petitioners
grant a hearing, let the petitioners
develop their own case, let the COM
pany develop its case, and then,
upon the facts and law developed in
the record, arrive at an honest, i'm
partial decision" ..... =
Reduction Of the rates sought by
the councils would have saved riders
81, sos 900 a year, Mr.. Hankin said
He said that the question before the
commission was whether there was
probably cause for "the relief
sought" and that "the probable
cause must be, determined upon a
plausible theory favorable to the
complainants, not upon fantastic
theories favorable to the company, /"
He said that from the standpoint of
quality of service rendered and ex-
cessive profits there was probable
cause for relief"
Snsrkrw 0al r~>.. L. E9a