Evening star., 1947-10-21
Arbitration HEARINGS
On Capital Transit
Raise Nearing End

Arbitration board hearings on
demands for 35 per cent wage in
crease for approximately 1000 en-
ployes of the Capital Transit Co.
approached an end today at the
Raleigh Hotel.
In final arguments this afternoon
it was expected that E. D. Merrill,
president of the transit company,
would reiterate the companys as
sertion that it needs a higher fare
even if wages are not raised. He
also was expected to maintain that
now is the time to reduce costs.
Eli E. Oliver, union spokesman,
was to make the final summary on
behalf of the employees wage de-
mandS.
Debt Retirement Cited.
The union, while refusing to take
a position on the company's ability
to pay the increases asked, has de-
clared that the company's financial
condition is so good that it has been
able to pay S50O0,000 in debts out of
net earnings in recent years.
DR.. George w. Taylor of Philadel-
phia, chairman of the Arbitration
Board, announced the board will
consider the evidence before it to-
morrow, Thursday and Friday. He
would not say when the board will
announce its decision
At this mornings session, Hawley
S. Simpson, company labor counsel,
introduced testimony and arguments
in rebuttal of union exhibits con-
corning overtime and time for meals
on traction concerns in other cities
Boston Situation Cited.
There was an involved discussion
of practices in Boston which ended
finally when DR.. Taylor remarked
with smile:
AS indicated, it's a very compli-
Gated proceeding to compare Wash
ington and Boston"
Mr.. Oliver refused to comment on
the con,pany's threat of a new fare
increase to supplement one allowed
last May. He said wage raises, how
ever, should not be tied to net in
come, which might vary from month
to month.
j. Edward Heberle, Capital Transit
vice president and controller, said
the firm has not decided when it
will ask the Public Utilities Com
mission for an increase to raise
fares, probably to Is cents cash or
two tokens for a quarter.
Mr.. Oliver placed in evidence ex-
hibits to show Capital Transit paid
S5,000000 out of net earnings be-
tween 1941 and 1945, cutting its
debt from $15,500,0OO to the pres
ent $1O,90000O. He declared the
firm is lin very good financial con-
dition now"
Tax Refund Used.
Regarding the unions asserting
that the company had been able to
apply $5,000,000 to its debts, Mr..
Heberle told newspapermen the COM
pany had received a $3,200,000 tax
refund in 1916 from the Federal
Government. He said the company
added some 100000 to this and ap-
piled the $3,500,000 total to wipe out
bonds against the firm. Then,
$1,500,000 was paid to eliminate
short debts.
Mr.. Oliver contended that while
nearly every big company is pay
ing overtime over 40 hours a week,
Capital Transit is proposing that
employees go on a 48-hour week,
without any overtime.
Mr.. Oliver said the trend in the
transit industry is toward muni-
.cipal operation and ownership OF
public utilities.
The labor counsel presented evi-
dence to show, he said, that the
company, after training new en-
pioyes. keeps many of them only
about three months He declared
it has been unable to recruit suf-
hcient number, although other pri-
vate employment in the District has
risen 20 per cent. He said last
year the company interviewed 5000
prospective workers. found only $50
qualified, and, of this number, had
1f