Evening star., 1953-07-31
FaCt-Finders
Meet Today on
Transit Case
Union Represented,
But Not Company,
In Pension Study
BY Froncis P. Douglas

Representatives of the Capital
Transit Co.'S union employees
met today with members of the
fact finding board to discuss the
procedure for the boards study
of the dispute between company
and union growing out of pen
sion demands.
Company officials were not
present. This was in line with
the statement by President j. A.
B. Boardwater that the company
would have nothing to do with
the board.
The board, appointed by the
District Commissioners and the
Federal Mediation and Concilia-
tion Service on July IA, is head
ed by Vice Admiral Oswald c.
Colclough, U. S. NJ, retired. Other
members are Thomas w. Hol-
land, industrial relations con-
Sultant, and John j. Corson OF
McKinsey & Co., management
consultant firm. It has an
'nounced it will begin hearings
on Monday.
Union Co 0-operatiOn VOuched For.
The union was represented by
Walter j. Bierwagen, president
of District $50, Amalgamated
Association of Street, Electric
Railway and Motor Coach
Employees, AFL, and Bernard
Cushman, union attorney.
Mr.. CuShman said the COM
pany's position is IAN affront to
the board and to the public" He
said the union would continue
to cooperate with the board.
It is conceded by all involved
that the board, appointed to
study and report on the dispute,
would have no power to enforce
any recommendation.
The dispute involves primarily
the unions demands for i'm
proved pensions and, secondarily,
the question of arbitration. The
pension contract expired June 80.
Mr.. Broadwater'S letter to Ad-
miral Colclough follows:
This will acknowledge your
letter of July Goth in which you
advise that the fact-f1nding
board appointed to consider the
demands of the union for a new
pension plan between Capital
Co. and Division $50, AASER &
NICE of A, AFL,, (the union) will
commence hearings August Sd.
This company fully recognizes
the seriousness of the situation
and the inconvenience nd
hardship which would result
should there be a stoppage of its
service. For these reasons, it has
given the matter its most care
full consideration before arriving
ct . conclusion.
Sees Responsibility Lacking.
"As you know, the company is
now engaged in a fare hearing
before the Public Utilities Com
mission of the District of
Columbia in which it is seeking
a fare adjustment to meet it's
increased and increasing operat-
ing costs. To grant the present
demands of the union would add
additional annual costs and
bring about higher fares than
those already requested.
For a great many years.
Capital Transit Co. has taken
the position that it is the respon-
sibility of management to oper-
ate the company on sound
financial basis as to be able to
provide efficient transportation
to the public at reasonable rates.
"The company, therefore, will
not subscribe to a procedure
which would delegate to some
third parties the right to estab-
lish it's costs when those parties
have no responsibility now or in
the future to provide the means
of meeting them.
"In our opinion, the practice
which became prevalent in the
past decade of having wage costs
fixed by government selected
fact-finders or arbitrators has
been a major factor, beyond COM
pany control, in influencing the
bus and streetcar fares paid by
the public.
I'm such cases in the past
there shall be an increase but
only how much of an increase
there will be. In unregulated in
dustries such increased costs can
generally be met by Immediately
increasing the sale price of the
product but this is not true in
the case Of regulated public
utility.
Position Stated.
Eve fully recognize and ap-
preciate the efforts which the
Commissioners of the District of
Columbia and the Federal Me-
diation and Cancellation Service
have made to resolve this matter.
We also appreciate the willing
ness of the members of your
board to undertake this difficult
task. However, we must respect
fully advise you that our posi-
ton is as follows:
81. We have a binding con-
tract with Division $50, ASSER
& NICE of AFL, to work until
June 80. 1855. The company
has scrupulously fulfilled it's OBJ
legations under the contract. If
the union fails to live up to the
contract it will be answerable
to the company, and indirectly
to the public. for all damages
that a work Stoppage might
cause.
20. We do not believe there
is any legal authority for the
appointment of a fact finding
board. Past experience has
shown de, the steel case) the
findings Of such a board have
aggravated rather than resolved
the problem.