Evening star., 1951-04-22

articles on the history of the Capitol
Ironsit Co.. since il went under new
management.
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sociations, said he has found this
to be "the prevalent opinion. /"
Mr.. Leeman said he has heard
the subject widely discussed, at
meetings of various kinds
throughout the city.
Mr.. Leeman told The Star:
From my observations, the
transportation system as it is
now operated is grossly made
Iquate to meet the travelling needs
of the public. The matter is be-
ing carefully considered by the
Public Utilities Committee of the
Federation of Citizens Associa-
tions and by the Inter Federation
Council.
This matter should have the
immediate and careful attention
of the Congress because of the
necessity for the thousands of
Government employees to be able
to get to their places of employ
ment to carry on efficiently the
work of the Government.
Called Immediate Problem.
ut is the immediate problem
OF the officials of the Capital
Transit Co. in the interests of
their government in the present
emergency to take all steps within
their power to remedy the break
down in adequate public trans
portation.
Unless the officials of the Cap
ital Transit Co. do Immediately
take steps to remedy the situa-
tion, the prevalent opinion that
they are deliberately Withholding
service with a view to bringing
about public ownership will be
confirmed"
Frederick C. Belen, member
OF the Federation's Public Utilities
Committee. had this to say:
In my opinion. the agencies
that have the responsibility of
supervising utility should be
familiar with its financial opera
tions and get the real facts at fare
increase hearings. The public is
not in position to demand these
facts.
Therefore. the burden rests
with the Public Utilities Commits
sion and other agencies concerned
with supervision of public utili-
ties to bring out their earning ca
pacity and stock profits. This
should be done particularly when
they ask for fare increases.
Not q Stock Investment.
The public is entitled to have
"a public transportation system
that is service to the people,
rather than just another means
for stock investment.
THE primary objective of Capt.
tai Transit and other utilities is
as a service to the people and not
to provide means of specula-
ton for investment. They should
not be permitted to draw out all
the profits through stock manipu-
lation and then attempt to make
it public responsibility by selling
the concern to the taxpayers.
when profits are no longer there. .
The present CTC management
is cutting down on service, re-
ducing schedules, packing them
in" on streetcars and buses. and
making drastic economies so it can
get higher profits. the civic lead
ers say.
Concededly shrewd businessmen
with wide variety of interests,
the new ownership does not seem
too anxious to please the public,
these observers declare. For there
lis no real campaign to get the
people to ride streetcars and
buses - no experimenting with
new routes or programs to make
the service more attractive, no
genuine effort to find out what
the public wants, say some MEM
bers of the Federation's Public
Utilities Committee.
New Owners Bought Low.
The new owners bought the CTC
stock at only $40 a share. CTC
has 100000 shares of common
stock and the new owners now
hold about SIS per cent control of
the company, as well as active
control of the management.
The current market value Of the
stock is around $35 share. Thus
the new owners. within year and
ia half, have about doubled their
money.
Capital Transit owners deny
they have any present intention of
selling and getting out. E. Cleve-
land Giddings, vice president,
pointed out the company is max
ling money and he discounted any
plan to force the utility into pub
lie ownership.
The Federation of Citizens AS
sociations adopted a resolution
asking that Congress set up a
commission. representative of
Washington area residents, to
study the overall transit situa-
tion here. It would be empowered