Evening star., 1946-01-03
!!IransitPayBoost
To Await RuIinq
|0nF FareIncrease
Sterilization Board
To Decide Initial
Plea for New ScuIe


moved toward asking higher
streetcar and bus fares to meet
the cost of wage increases
granted employees late yesterday
by an arbitration board, but will
hold up payment of such in
creases pending action by the
Wage Sterilization Board.
Formal application will be made
to the WSB in day or two, it
was learned, requesting that the new
wage costs be used as basis for a
plea to the District Public Utilities
Commission for higher fares.
The application from the COM
pany, 1t was learned. will go to the
regional Wage Sterilization Board
at Philadelphia, which has juris-
diction over the District.
Hope for Prompt Decision.
Company spokesmen expressed
hope they would get a decision in
the matter soon, but there was no
assurance when this would be forth
coming.
The company also is required, un-
der the national wage stabilization
policy, to file with the Office of
Price Administration a lengthy re-
port on its status and the estimated
increased costs due to the wage
award. The OPA later could inter-
vene in fare hearings before the
local Public Utilities Commission, in
case OPA decided an increase in
fare was not justified.
The OPA policy, it was learned.
is to expect the company to absorb
wage increases, if possible, without
passing the cost on to the public
In higher fares. Company officials
have claimed they cannot so absorb
the cost.
Can Rule on Cost Effect,
The wage award of IL cents an
hour Is not subject to veto by the
Wage Sterilization Board, officials
said. But the board can rule on
whether all of the wage costs or any
part of it could be used for what
is known as rate relief" for the
company.
The arbitrators awarded a r.
cent increase IN wages, retroactive
to November 9, to about $500 en-
ployes, some 2,oao of which are
operators, and also incorporated the
wartime bonus of z cents an hour
into the basic wage rate, The
award is effective during the life of
the current contract between the
company and the transit union.
which ends June 80.
Although the company must 90
through procedures required by the
national stabilization policy, sub
mlttlng reports for action by both
WSB and OPA, the final decision
on fares viii rest with the PUG.
Lines to Be Returned.
Guy Richardson, Federal manager
Tor the Capital Transit Co., told The
Star, in long distance telephone
interview from his home at KeniI-
worth, ILL.,, that he would recon-
mend the Government promptly re-
turn the company to its owners.
The Federal authorities, through the
once OF Defense Transportation.
and by order of President Truman.
TOOK over the company after two
different tieups in transportation
here in November.
The arbitration award means that
operators on one-man streetcars and
buses will get top rate of sl.l4 an
hour.
Previously the basic rate for one
man car operators and bus drivers
was S5 cents. The union had asked
Tor an increase of 30 cents an hour
to bring the rate to S1.25.
James Francis Reilly of Washing
ton, the boards industry representa-
tive, dissented from the award. O.
David Zimring of Chicago. union
representative, said the decision was
not altogether satisfactory but that
ne had agreed to sign, nevertheless,
Aaron Horvitz of New York. desig-
mated by Secretary of Labor Lewis
d. SchWellenbach, was chairman.
Inc award, which presumably
settles the wage dispute between
the transit company and Divi-
sion 6S9 tAFD, Amalgamated Asso-
clatlon OF Street, Electric Railway
and Motor Coach Employees, was
brief. consisting of only Is type
written lines.
Preliminary to announcing award
details the board said it had given
full consideration to the evidence
and arguments in the record and
to the representation on the part
OF the company that during the re-
manning period of the current labor
agreement between the parties the
basic work week will not fall below
SIX days, where six-day work week
in now provided"
In a statement yesterday, E. D.
Merrill, company president. said the
(See TRANSIT, Page A-33