Evening star., 1952-01-09
PSC
Bars Mention Of
Recent Dividend
Capital Transit Says
Losses Continue on
Suburban Routes
By William A. MiIIen
Sfcr S1~ff Tnr~~snenln.s

oAoAA VI WIG 1CSSAAoiy Ulotl IUuUCQ
dividend by the Capital Transit
Co. was barred today by the
Maryland Public Service Commits
sion, which opened a two-day
hearing on transit's request to
cut back service on buslines in
Prince Georges and Montgomery
Counties.
Chairman John H. Hessey
banned discussion about the divi-
dend when Attorney F. Gloyd
Await of Capital Transit started
to refer to a letter that the Dis
trict PUG had written to a men,
ber of Congress, explaining the
dividend situation.
Mr.. Await told the commission
in his opening statement that the
company has been running its
Maryland lines at a loss for sew
eral years. But not until 1947 did
it come to the commission and
ask for some adjustment. He re-
called that last spring seven
Maryland lines were abandoned,
with commission approval. and
the company then started to re-
duce tis losses somewhat.
Wage Raised Blamed.
But in July there was a strike
on the company's lines, Mr.. Await
declared, and the resulting wage
increase wiped out the savings in
the Maryland operation.
A group of citizens. represent
ing the affected areas in which
the company proposes to abandon
or modify lines, was on hand for
the hearing. Chairman Hessey
said that tomorrow will be de-
voted to the Prince Georges Coun-
ty situation.
Dean j. Locke, transit staff
engineer, the first witness, attrib-
uted declining patronage on the
Maryland lines to competition
from private automobiles. Al
though the population has in
creased some 400 per cent in re-
cent years in the area served by
the T-8 Alta Vista line, passenger
trips have declined Is per cent,
due to poor patronage, Mr.. Locke
testified. The company proposes
to discontinue zones 3 and 4
along Old Georgetown road be-
tween Alta Vista road and Rock
vile pike.
To Quit Parks i'm March.
On the proposed re-routing oi
the L 6 line. which serves the
Rock Greek Gardens area, Mr.
Locke pointed out that r. F
Green, vice chairman of the
Maryland National Capital Park
and Planning Commission, has
given the company until March II
to continue operating it's buses
over Beach drivee in Rock
Creek Park. Mr.. Green wrote that
after that date the company will
not be allowed to operate buses
over park roads owned or operated
by the Commission.
Mr.. Locke told the commission
that a portion of the z 2 line
running along Forest Glen road
will be dropped. under the COM
pany's plan. He said that few
new houses have been constructed
in that area and that the line
has felt the effect of the increas-
ing use of private automobiles
The company proposes to consoli-
date the z 2 and Y 2 lines in that
section, effecting substantial econ
omies and operating both over
Seminary road, Mr.. Locke said.
Transportation Study Urged.
Meanwhile, the Montgomery
County Council and residents OF
the Alta Vista Old Georgetown
road area yesterday urged Gov
McKeldin to appoint a special
commission to study the public
transportation situation in the
nearby Maryland area.
The same suggestion was made
by more than 300 Alta Vista Old
Georgetown road residents at 9
meeting at Mount Zion Baptist
Church last night.
In Washington, Senator Rob-
|ertson, Democrat, of Virginia
said today that hearings or
his bill to direct an Inter
state Commerce Commission sur
vey of passenger carrier facilities
in the Metropolitan Area should
await a study of the forthcoming
Government spending program
eve had better wait TOR the Presi-
dents budget message" he ex-
planned, Ito see whether Congress
would be able to provide the ICC
with the funds necessary for such
a survey"
Had Expressed Views.
Senator Robertson said he hao
expressed his views in a letter
to Chairman johnson of the
Senate Interstate and Foreign
Commerce Committee, where the
legislation is pending. Senator
Byrd, Democrat, of Virginia i.
joint sponsor on the bill.
To do the comprehensive jot
called for by the bill, it is under
stood the ICC might need 81
million.
In a defense of Capital TRANSIT
profits, PUG Chairman James H
Flanagan answered Representative,
Crawford, Republican, of Michi.
gan, who last week demanded tha'
the transit concern be investigated
because it declared a $2.4 milliol
dividend at a time when a far
increase request was pending. Mr.
Flanagan said the company haG
not earned an excessive rate O
return.
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