Evening star., 1952-06-20
Capital Transit
Won 'tRep|yto
Lands Report
/ Further Airing Due
On Finances at
Flanagan Inquiry


The Capital Transit Co. today
said it intended to make no state
ment on the report blasting its
financial transactions which is
before Congress now.
The whole controversy. however.
was headed for further airing
when the Senate District Commit
tee resumes hearings next Tues
day on the nomination of James
H. Flanagan for another term on
the Public Utilities Commission
Mr.. Flanagan is chairman of the
PUG.
The highly critical report was
prepared by James M. Lands,
former chairman of the Securi-
ties and Exchange Commission.
He did it for a House District
subcommittee, headed by Repre-
sentative Kennedy, Democrat, of
Massachusetts.
Both the transit firm and the
PUC were criticized roundly by
the report.
Flanagan Prepares Answer.
Mr.. Flanagan said he is pre-
|paring for the Senate committee
his answer to the report. E. c.
Giddings. vice president of Capital
Transit Co., was asked when the
firm would comment on the
IchargeS.
eve intend to make no state
ment," Mr.. Giddings said. "It's
Ian effusion of words
The Lands report charged thai
the transit company's reports tt
the PUG during the war years die
not give a true picture Of large
profits. It said that the PUG al.
lowed this to happen by authoriz.
ling certain bookkeeping proceed
ureS when, in fact, the PUG shoule
have been protecting the public
These excess profits apparentl!
were lost to the public. the repor
said. It pointed out that the!
6 had been distributed in high divi
$ dends in the past two years.
The House subcommittee met II
9 consider the Lands report yester
Q day. No action was taken be-
cause of the lack Of quorum
d Another meeting is planned earl,
next week.
e Questioned Angrily.
: Mr.. Flanagan was under heav.
4 fire from the Senate Distric
Committee earlier this week, as h
appeared for the first time a
+ hearings on the nomination t
q succeed himself. Senator's angril
" poured questions at him so fas
d he seldom was able to give al
n adequate reply.
Some of the questions wer
e based on parts of the Lands re
a port before that document wa
released yesterday by Representa-
= tive Kennedy on the House sid
Of the Capitol.
Mr.. Lands participated in tn
two-hour meeting of the Kenned
group yesterday. He explaine
many sections of his report, it wa
learned, and promised to prepar
some answers to certain question
submitted by committee mem
bers.
y Afterwards, at brief press con
ir ference. Mr.. Lands emphasize
le the Importance of one of his rec
ommendations-for an integrate
1t Metropolitan Area transit au
h thority. Clarifying the proposal
d of his report for such an agenc,
" he said it would include thre
If members of the District PUG
n and one representative each fror
the Maryland Public Service Com
IT mission and the Virginia Stat
le Corporation Committee.
le New Plan Advocated.
- One new proposal advanced b
|" Mr.. Lands in his press conferens
=. was for full-time member of til
- District PUG, to take the plac
-, Of the District Engineer Commi.
:, Sioner, who can give only pal
=, ~ time to the job.
n. Legislation for different kin
ID OF area transit commission wi
to be called up for action tomorro
of on the Senate floor. Sponsored
Chairman johnson of the Sena
a Commerce Committee, it calls +,
e. a three-member commission, al
I'd pointed by the President and col
GO firmed by the Senate,