Evening star., 1949-11-23
Transit Hearings
To End tuesday
Arbitrutors Planning
To Recess as Union
Hits New Proposals

Hits New Proposals
A five-man arbitration board
today set next Tuesday as the end
of the long drawn-out public
hearings on the dispute between
Capital Transit Co. and the tram
sit workers union over terms of a
new contract. The board planned
to recess until Tuesday after to-
days hearings.
Union Counsel Ely Oliver
launched into his rebuttal at to-
days session, attacking several
proposals by the company for
change. in last years contract.
The company has indicated that
its present financial condition
could not absorb the union de-
mands estimated by the company
at S4.432,438. On the contrary.
even if the unions demands were
denied, it claims it would need a
fare increase or sharp curtail-
ment in service to meet its obli-
cations in the next IL months.
j. E. Heberle, company vice
president, who injected the possi-
bility of a fare raise into the hear
ing late yesterday. resumed testi-
mony when the hearing opened
this morning. He estimated that
the changes asked by the company
in the old contract would accom-
plish saving of $685. He also
presented statistics on the tax
liability Of the corporation.
Company Plan Attacked.
Mr.. Oliver then proceeded to
cross-examine Mr.. Heberle and
Hawley Simpson, company labor
consultant, on many details OF
evidence already presented.
Launching into his formal re-
buttal, Mr.. Oliver pointed out that
seven Of the company's II present
proposals had been denied by an
Arbitration Board handling the
company union contract in 1947.
Mr.. Oliver attacked the COM
pany's proposal to substitute the
present contract provision requir-
ing that no regularly assigned run
shall pay less than eight hours
time with a new provision that no
such run should pay less than six
hours time and at least 10 per cent
should pay at least eight hours
time.
The union counsel submitted q
lengthy exhibit listing transporta-
ton companies in various parts of
the country which have contracts
requiring eight hours paBfor regu-
lar runs or more.
The company spent most of yes
terday producing exhibits to boil
ster its opposition to several, Of
the transak @driion's proposed
changes in working conditions afd
collateral benefIts..
S1,753,620 Estimate.
Shortly before adjournment,
Mr.. Heberle said the company
will need $1,753,820 added reve-
nue., or will have to cut expenses
by that amount, to maintain the
property in its present condition
and pay dividends to it's owners.
His figures were based on the
IL months ended October 81 and
estimates for the succeeding
II months.
Placing the coming years traffic
loss at 71a per cent, Mr.. Heberle
predicted passenger revenue will
drop from $27, 1885, ,374 to $25, ISL
426 in the next IL months.
Net income Of the company will
drop from $721.455 in the past
year to $51 900 in the II months
ending next october 81, he pre-
dicted, based on present wage
costs. But the minimum addi-
tional net income required will be
81, ,033 900, the witness contended.
Estimates Cost of Demands.
To get this extra net income. ii
will be necessary to realize an ad-
ditional $1,753,820, he said, either
in a fare increase, or curtailed
service, or both. Income taxes
would take $720,820 out the new
revenue, leaving a net Of $1.033,-
900, he said.
For the first time, the COM
pany spokesman estimated the
cost of demands made by the
union at an overall total Of $4,-
582, 2,438. Mr.. Heberle reached this
estimate by listing the union
demands in II different cate
gories, leading off with the
25 cents an hour across-the- board
pay raise.
Mr.. Heberle raised the prospect
of fare increases, but he expressed
the opinion that any raise ap-
proved by the Public Utilities
Commission would fail by far to
meet the need for revenue. This,
he said, suggested the need Of
wage cuts if we are to maintain
the property and pay dividends
to the owners" Earlier, company
officials had contended that owing
to the recent decline In the cost
of living the arbitrators should
consider no wage raise now.
II the fares were to be raised
from the present 13 cents to Is
cents, with tokens at four for so
cents instead Of the present three
for IS cents, and If the $1.75
weekly pass were eliminated, Mr..
Heberle said, new revenue would
amount to 1892 900, or only
$4,000 after taxes.
Trumans Attend Opening
OF Private Film Theafer
President and Mrs. Truman.
Joined by members of the cab
met and White House staff, last
night attended the opening Of
the Academia, the 71-seat the