Evening star., 1952-01-05
Demands Grow
Louder for
Transit Probe
Monkey Business
Indicated, Crawford
Writes Kefuuyer

investigation.
Il The Public Utilities Commission
yesterday granted the company ar
increase of 10 cents in the price
|Iof its present 50 weekly pass. The
change is effective January 90.
The company had sought to- raise
the price Of the pass to $2.25 anc
to abolish fare tokens, sold at three
for 40 cents. The PUG denied these
requests. No change was asked
in the 15-cent cash fare.
! I'VE are terribly disappointed
said E. c. Giddings, company vice
president. When we made ou,
application originally for the rate
increase. we felt we had been very
conservative"
Investigation Promised.
| District leaders in Congress. not.
ling the company's declaration o1
a $2.4 million dividend this week
while the rate increase was pend.
ing, have said they would look into
the firms affairs when they return
for the opening of Congress Tues.
day.
Representative Auchincloss, Re-
publican, of New Jersey, member
of the House District Committee
who has had Is years experience
in the securities business, had his
say late yesterday.
He took the view that for Capt.
tai Transit to pay "a fancy extra
dividend" while asking a fare in
crease was ''little short of ridicu-
Elous."
1 He said thorough investigation
of the company's affairs should be
undertaken Immediately - that
some responsible agency of Gov
ernment ought to look into it,"
! Public Should Benefit"
The money which the direc-
tors voted to stockholders was
earned from the public, and after
a reasonable return paid to in
'Ivestors, the public should benefit, "
he declared.
"A $40 dividend on the original
stock of the corporation is not
reasonable" he added, referring
to the $2.50-a-share dividend an
nounced about six weeks after the
company divided each share four
ways. J
News of the PUG action brought
new comment from Representa-
tive Crawford, Republican, Of
Michigan, who has called for the
PUG and other responsible bodies
including the House and Senate
District Committees, to conduct q
thorough investigation of the com.
pany.
He said his Office has received
many calls backing the proposed
investigation. In addition, he said
he has written to Senator Ke-
fauver, Democrat, of Tennessee, a
member of the Senate District
Committee and former chairman
OF the Crime Investigating Com
mittee, and to Chairman McMil-
Ian of the House District Commit
tee.
WOlfson Testimony Cited.
Mr.. Crawford referred to testi-
mony by Louis E. Wolfson, chair
man of the transit company board
of directors, "and some of his as
Sociates" in the crime investiga-
ton.
Il think. you will agree with me
when I say that the evidence pre-
sented tends to indicate there is
some monkey business closely
connected with the present con-
trolling interests of the Capital
Transit Co." he wrote.
He called Senator Kefauver's
attention to the obvious wisdom
of your committees (Senate Dis
trict Committee) conducting a
thorough, fair and unhesitating
investigation of CTC and all rami-
fications.
Mr.. Crawford also called Mr.
McMillan's attention to the pos
sibility of an investigation by his
committee.
Meanwhile, legislation pending
at the Capitol to authorize the In
terstate Commerce Commission to
investigate passenger carrier facil-
tiles, their adequacy and "rea-
sonablesness of fares" in the
whole Metropolitan Area may be
headed for public hearings soon.
And Senator Butler, Republican
of Maryland, reported continued
complaints about curtailment OF
Capital Transit service in his
State. He said he hopes for hear
Iings on his pending resolution to
have the ICC investigate this mat
ter
Johnson Plans Hearings.
Chairman johnson of the Sen
ate Commerce Committee said he
will hold hearings on the measure
for an ICC investigation of Metro
Ipolitan Area passenger carrier IA
Icilities as soon as its sponsors,
Democratic Senators Byrd and
Robertson of Virginia, are ready.
An identical measure by Rep
resentative Beall, Republican, of
Maryland, is pending before the
House Commerce Committee, but
no hearings have been scheduled.
Senator johnson called the gen.
ieral picture of transportation in
the Metropolitan Area now an "in-
tolerable situation"
/. He said the ''big kitty" of div
idend to transit stockholders
'1ends lot of weight" to the need
for an investigation by the ICC.
| The Byrd-Robertson bill would
give the ICC broad powers of in
Ivestigation jointly with Virginia,
Maryland and District bodies.
Butter Wants Early Probe.
Senator Butler, a member of
the Senate District Committee,
said he faEors an ICC investiga-
tion of Maryland service curtail-
l. .s~4 ~ ~s4 -