Evening star., 1953-12-27
WoIfson Urqes
PubIic-0wned
Transit System
Merger of All Lines
In Area in $50 Million
Bond Deal Proposed
By Don S. Warren

Eventual public ownership OF
the Capital Transit Co. and three
major suburban bus lines under
a 30-year $50 million revenue
bond deal was proposed yester-
day by Louis E. Wolfson. The
head of the Florida syndicate in
control of the Capital Transit
Co. termed his plan the only hope
for lower fares.
In this he held out the sug-
| geStion of a 15-cent cash fare
with free transfers for any ride
within the metropolitan area
of the District and nearby Mary
land and Virginia.
If adopted, all existing rates
of fare would be changed. the
city's $2.40 weekly pass would
be abolished and the Districts
three -cent school children's fare
would go up to five cents.
Mr.. Wolfson, on the witness
stand two weeks ago before the
Payne subcommittee of the Sem
ate, came up with the kernel Of
his regional authority plan while
protesting against delays by the
Public Utilities Commission in
acting on proposed fare in
creaSeS.
Provides Detailed Plan.
Asked to submit a detailed
plan. he came through yesterday
with a 26-page document, but
tressed by numerous statistical
exhibits, which suggested:
l. The creation of a Washing
ton Transit Authority. to take
over both the control and man
agement of the Transit company
and three suburban lines. to be
operated on a tax free basis;
2. Issuance of 30-year, S per
cent revenue bonds to be ex-
changed for the stock on the four
transit concerns, this debt to be
amortized by 81 million a year
out of operation revenues, with
no cash outlay by the public.
3. Majority control of the
Transit Authority to be retained
by representatives of the tram
sit concerns during the revenue
bond period because of the risks
involved for stockholders of the
present companies.
4. The Washington Transit
Authority would be given power
to regulate rates of fare, service
and even bus stops throughout
the Metropolitan area, as well as
to issue bonds to make sure the
-bondholders would get their due
returns
Cites Advantages.
The CTC board chairman
outlined numerous ways in which
the revenue bond shift of owner
ship to the public would ease
the squeeze" on mass transport
tation services.
He said these would include as
surance of continued operation:
acquisition at no cost to the tax
payer or rider beyond his cash
fare); no public debt problem;
coordination of regional services
and improved services.
Present transit owners also
would benefit, he said.
Under this heading he listed
such benefits as sale of the prop
critics lin reasonable terms;
control of the lines until the
revenue bonds were redeemed:
and continued management of
the lines, at an appropriate fee
for services, until the public
authority takes over full owner
ship.
Based on Bingham Plan.
Mr.. .Wolfson, in his report to
the Senate transit inquiry group,
reiterated that he was not adj
vocating the plan he outlined.
But he added: If the community
desires lower transit fares in the
metropolitan area, the writer
knows of no other solution to
accomplish this end"
He did not offer his plan as a
new idea. Rather it is develop
ment of the So-called Bingham
plan which has been under dis
cuSsion in the last year or two.
In fact, Mr.. Wolfson quotes
literally from statements by Col.
Sidney H. Bingham. general
manager of the New York Transit
Authority, who has advocated a
partnership between the public
and private operators of ailing
city transportation firms.
Under this plan, there would
be created Washington Transit
Authority to take over the opera
ton of the Capital Transit Co.
and three suburban buslines, the
Alexandria, Bancroft & Washing