Evening star., 1953-11-29
Senators Start
Transit System
Probe Tuesday
Commission to Rule
By Mid December
On Fare Rise PIeo i,
n ar
By Don S. Worren

L
bus services will advance into q
series of formal hearings, begin
ming tomorrow, against a back
drop of an almost certain fur.
ther increase in fares soon.
| Chairman Robert E. Nc
Laughlin and his associates or
the District Public Utilities Com
mission say they expect to issue
an order by mid-December or
the latest Capital Transit Co
call for higher fares.
What the new rate schedule
will be is yet to be determined.
That there will be an increase
however, doesn't seem much ir
doubt, what with rising wage:
and other costs and with mas:
transportation rates in othe,
large cities even exceeding those
here.
Indications are the increases
will amount to considerably less
than the $874,00O boost in reve-
nues sought by the company
which it said would give it a
rate Of return of TIT per cent
But. unless commission mem
berS change their present think
ing, indications are that there
will be some boost in the II
cent cash fare and a lesser in
crease in the token rate, now
five for rs cents.
May Abolish $40 Pass.
In addition, favorable consid-
Grafton apparently is being piven
to proposals to abolish the
present $2.4O weekly pass, as
demanded by the company, but
also to substitute cheaper
weekly permit" on which there
would be an additional charge
maybe of 10 cents-for each
extra ride.
The company fought proposals
for adoption of a permit-plus
cash plan during the four
months of hearings in the rate
case from June 3 to October l
1t insisted there should be COM
plete abolition of the whole pass
deal.
There seems to be strong SEN
timent in the commission and
elsewhere, however, for some kind
OF a weekly permit, with some
extra cash payment per ride,
which would encourage increased
patronage of mass transporta-
tion while at least reducing the
alleged abuses" of the unlimited
weekly pass.
Other Formulas Studied.
While commission members ap.
pear to be in rather general
agreement on these rate "philo-
sophieS." it is said they are con-
sidering a half dozen somewhat
different formulas designed to
carry them out.
Open public hearings before
the Payne Subcommittee of the
Senate District Committee-fi-
nanced by a $4,000 grant from
the Senate-are to begin at 10
am. Tuesday in Room 303 of
the Senate Office Building.
These will be preceded, how
ever. by a closed-door hearing
tomorrow for some spokesmen
as yet unidentified, for the Inter-
state Commerce Commission.
CTC Stock Scrutinized.
The Senate Committee NAV
nave other questions to ask of
ICC officials, but it seemed prob
able they would be asked to COM
ment on at least two past deal
ings in CTC stock.
One is the purchase in 1949
OF controlling interest in the
company by Louis E. Wolfson
and a number of Florida asso-
ciates. That group bought con-
troll at $40 a share for q total
cost of $2.4 million.
Another was the 1851 four
for-one split in the 100000
shares of CTC stock into $50 ,00O
shares. This once was disap-
proved by two ICC examiners
but later was approved by the
ICC and the District Utilities
Commission.
At the time, company spokes-
men argued the stock split was
desired to make the stock more
marketable.
Small and Hyde to Testify.
Tuesdays public hearing is
to be opened with statements
from two members of Congress
from nearby areas. They are
Representatives Hyde and Small
of Maryland, both Republicans,
who have taken active interest in
legislative moves for metropoli-
tan controls over transportation
services.
Present and former officials
of the Capital Transit Co. are tc
take the stand Wednesday. II
all citizen witnesses have not
been heard by that time, they
are to take the stand later in
! the week.
One of the witnesses called foI
| the Wednesday session is Clark
! M. Clifford, former legal adviser
to former President Harry S
Truman, who has been in private
law practice here since February
1. 1850. Shortly thereafter he
was announced as having been
put on a retainer as a legal ad-
wiser to the Capital Transit Co.
Mr.. Clifford said last night he
had been giving general legal
advice to the company and still