Evening star., 1947-10-01
Capital Transit
SeesFareRise
In ay.Denands
Arbitration Bourd Told
Proposed Raise Would
Cost $8,033,033

CdplIdl 1TdIlSlt 70. SpOkeSIileIi
told an arbitration board today
that the IS per cent wage raise and
other concessions asked by 1000
employees would in reality amount to
a 81 per cent wage increase and cost
the company an additional So, ,o33 ,033.
Streetcar and bus fares might
have to be raised to is cents, or two
rides for a quarter If such a wage
increase were permitted, j. Edward
Heberle, company controller and vice
president, told the board.
Mr.. Heberle said, "It is serious to
consider an increase beyond 10
cents" but he indicated the COM
pany would have to seek Public
Utilities Commission authorization
for such an increase if the arbitra-
ton board granted all demands of
the union.
Demands Called Fantastic.
Hawley Simpson, company labor
counsel, asserted at the board hear
ing in the Raleigh Hotel that the
union Is walking in an economic
dreamland" in its current demands.
He declared that the requests for
improved working conditions are in
effect wage increase requests. He
said that in the long run the public
will be the Santa Claus"
Attacking the demands as "fan-
tastic in the extreme" Mr.. Simpson
said the union wants an employe to
be paid for holiday even If he re-
fuses to work on that day.
Mr.. Heberle informed the board
that taxi passenger revenues here
exceed those of his company. The
taxi industry's gross revenue is more
than $3o,0O0,000 a year here, he
stated.
Z There are 5000 taxis in Washing
ton, he continued. The Public Utih-
ties Commission, he observed, has
measure of regulation over taxis, but
by the nature Of that industry 1t
cannot be made very effective. Taxis
also are in the sightseeing business,
he said.
Competition Restricted.
The controller said that only the
difficulty of buying new automobiles
now restricts this form of compe-
tition.
Mr.. Heberle predicted gross rev.
enues of Capital Transit will shrink
If they go as low as $23 ,000, 900, he
said, they will not earn interest
charges and the company will be
on the way to the bankruptcy court.
Gross annual revenues have been
around s27,000,0o0.
He told the board he was amazed
the company sells as many passes as
it does. He declared the number
dropped from 177,o00 to 10000
when the May II fare increase ad-
vanced the cost from $1.25 to $1.50.
Mr.. Heberle said most of the
transit companies in public owner
ship or receiver operated are paying
from $1.33 to SLAP an hour for
streetcar and bus operators. Capt.
tai Transit employees now get $1.20
an hour. Pointing to the concerns
where the pay is higher, Mr.. Heberle
said "the plight of these companies
Is serious"
Mr.. Heberle declared Capital
Transit now has a $12,254,338 pay
roll. The IS per cent wage increase
would send the payroll past the
$40 1000, 900 mark.
Revenue Estimated.
Estimated revenue of the company
this year, Mr.. Heberle said, Is s26,-
773,142. The company vice presi-
dent told the board 60 cents Of
every dollar earned goes into the
payroll.
Increase in Pay Shown.
One exhibit introduced yesterday
showed the hourly pay rate for one
man car operators increased by Al
cents, or 81 per cent, from July l,
1910, to July /, 1943, and Is cents
since then. Other benefits accruing
to transit workers in the past seven
years, company negotiators said.
included overtime pay after 40
hours, two weeks vacation after five
years, other vacation benefits and a
pension plarr to which the company
contributes So per month per en-
ploye-twice what each employe
contributes.
The average earnings per man
increased from $31.13 per week in
1941 to $95.5e per week in 1947, the
company declared.
The arbitration board began hear
ings 10 days ago in an effort to
reach agreement on new contract
ito replace that which expired June
30.