Evening star., 1949-11-23
Higher Transit
Fares Needed, 4,
Pay Board Told
Necessary Even If
Union Demands Fail,
Official Contends

$4,500,000 to meet current union
demands, the Capital Transit Co.
contends it needs higher fares or
economies in operation, maybe
both, in the next IL months.
This position was outlined to
the five-man arbitration board
yesterday by j. B. Heberle, COM
pany vice president.
The firm will need an additional
$1,753, 800 next year either in new
revenue or savings, he testified,
even if the union wage demand is
denied.
Mr.. Heberle was to testify again
today, estimating the savings
asked by the company in its coun-
terproposals.
The arbitrators, meeting in the
Hamilton Hotel. had expected to
conclude hearings this week on
the company-union dispute over
q new contract. But Ely Oliver,
union counsel, predicted the COM
pany's testimony yesterday will
cause the hearings to run into
next week.
The company spent most of yes
terday producing exhibits to boil
ster it's opposition to several OF
the transit unions proposed
changes in working conditions and
nalIo fnro1 honofitS
$1,753.620 Estimate.
Shortly before adjournment,
Mr.. Neberle 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 its owners.
His figures were based on the
u months ended October 81 and
estimates for the succeeding
IA months.
Y Placing the coming years traffic
loss at 71a per cent, MIR. Heberle
predicted passenger revenue will
drop from $27 7,839,374 to $25, ISL
426 in the next II months.
Net income of the company will
drop from $721,455 in the past
year to S51 900 in the IL months
ending next October 81, he pre-
dicted. based on present wage
costs. But the minimum addi-
tional net income required will be
$1,033,0 900, the witness contended.
Estimates Cost of Demands.
To get this extra net income. itI
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 '$72e,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 81
582, ,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.
If 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 SITS
weekly pass were eliminated, Mr..
Heberle said, new revenue would
amount to 1892, 900, or only
$4,000 after taxes.
Leave Issue Deferred.
"No fare that would produce
the $1,753,820 needed would be
approved by the PUC," the wit
ness declared.
Earlier in the hearing, after a
lengthy discussion over the sick
leave issue, Board Chairman AL
fred H. Colby polled the five
arbitrators and put the matter
over to the boards executive ses-
sions to follow the hearings.
George w. Cramer, superin-
tendent of transportation person.
mel, opposed the union request to
reduce the probationary period
for permanent employees from 80
to 80 days.