Evening star., 1944-01-28
Transit Rate
Hearing Denied;
Clio Protests
Hunkin Dissents
From PUG Report,
Charging Delay

Of the Maryland and District Indus
trial and Washington Industrial
Union Councils for immediate hear
lngs 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 telegram to Presi-
dent Roosevelt charging "the COM
majority is using prolonged
Investigations as 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 hearing"
The telegram was signed by Sid
ney R. KatZ, secretary treasurer of
the Maryland District Council, and
Joseph D. Phillips, president of the
Washington group.
Hankin Dissents.
In a lengthy dissent to the ma
jority opinion of the commission
Minority Member Gregory Hankin
charged that the phase pending
completion ofthe 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
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
five 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 to
state that the engineering staff had
devoted 103 man-days to study of
depreciation, adding: TT is the
opinion OF this commission that no
useful purpose would be served by
calling formal hearing pending
completion of the investigation now
IN progress, at which time the neces-
sary statutory notices of hearings
will be issued"
Filed by Labor Groups.
The action of the commission, was
taken on a petition filed on January
by the industrial councils and SUD-
ported by number of other labor
groups, who called for an immediate
nearing on rates, a reduction of
rates by February / for the sale of
weekly passes at 81 and four tokens
1or 81 cents. Present rates are 81 .25
Tor passes and three tokens for os
cents.
In his 40-page dissent, Mr.. Hankin
attacked the investigation work of
the chief accountant and the enpi-
neering staff. At one point in dis
cussing a report of the chief ac-
countant, v. L. McElfresh. Mr..
Hankln remarked: Whatever NAV
be said about the merits or demerits
OF the report and the theories on
which 1t is based, it is evident that
thls was not report on facts test
ing whether there was probably
cause for relief, but brief attempt
ing to show that there was probably
cause why relief should be denied !"
While Mr.. Hankin admitted that
4O4 hours had been spent in investi-
eating work, he claimed that it 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 or
whether the complaints could be
afforded a speedy remedy"
Sees Petitioners Thwarted,
II. 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, it should at least re-
frain from thwarting the petitioners
efforts to help themselves. The COM
should not refuse to act in
It's judicial capacity. The least the
could do was to make
It's data available to the petitioners,
grant hearing, let the petitioners
develop their own case, bet the COM
pany develop it's 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, ,695 900 year, Mr.. Hankin said.
He said that the question before the
commission was whether there was
cause for "the relief
sought" and that "the probable
cause must be determined upon a
plausible theory favorable to the
compliments, 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"