Evening star., 1953-07-31
Transit Asked
|ToCo-operate
|InFact-Findinq
Public Hearing Set
Monday on Dispute
Over Pension Terms
By Froncis P. Douglas


pointed to act in the pension
dispute between the company
and its union employees.
This was decided at meeting
attended by board members,
District Commissioners and AS
sistant Director Cylde M. Mills
of the Federal Mediation and
Cancellation Service.
Vice Admiral Oswald S. Col
clough, chairman of the. fact
finding board, also announced
that the board will begin hear
ings in the labor dispute at 10
am. Monday at the Depart
mental Auditorium. The hear
ings will be open to the public.
Board Meets Union.
Admiral Colclough and John
j. Corson, board member, con-
ferred this morning with union
representatives, who are cooper
ating with the board, on matters
of procedure. The two fact
finders then conferred with the
Commissioners and Mr.. Mills in
Commissioner Spencer's Office.
At the first conference, the
union was represented by Walter
j. Bierwagen, president of Divi-
sion $50 of the Amalgamated AS
sociation of Street, Electric Rail-
way & Motor Coach Employees,
AFL, the transit employees union.
No company representative
was at the conference on pro-
cedure in line with the COM
pany's statement yesterday that
it would have nothing to do with
the board.
Letter Disclosed.
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 g.
NICE of A, AFL, (the union) will
commence hearings August Sd.
"This company fully recognizes
the seriousness of the situation
a I'd the inconvenience an d
hardship which would result
should there be a stoppage of it's
service. For these reasons, it has
given the matter it's most care
full consideration before arriving
at a conclusion.
Sees Responsibility Lacking.
GAS 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 a 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 its 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 a regulated public
utility.
Position Stated.
1--WE 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 its 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