Evening star., 1953-07-27
Capital Transit
Race Policy Hit
AT Fare Hearing
Department Head
At Howard Seeks.
To Intervene

A Howard University depart
ment head today sought to
intervene in the transit rate
hearing on grounds the Capital
Transit Co.'S racial hiring policy
drives fares up.
Dorsey E. Lane, a law profess
sor at Howard, said he repre-
sented Dr. Harry Walker. head
of Howard's social science de-
partment. and Others similarly
situated"
He pointed out that colored
citizens make up 81 per cent of
the District population and
about so per cent of Capital
TranSit's daily riders.
Substantial overtime wage
payments by the company, he
contended, would not be needed
If the company's "discrimina-
tory" hiring policy did not result
in insufficient personnel.
Jurisdiction Challenged.
Transit and Public Utilities
Commission staff counsel con-
tended the commission had no
jurisdiction over the company's
contractural relations with its
employees.
Commission Chairman Robert
E. Mclaughlin said he would de-
| eide later whether the petition
contained an issue under it's ju-
risdiction, and whether the time
limit for intervention should be
! waived to admit the petition.
The transit company attorney,
F. G. Await, noted that teSti-
mony in an earlier hearing had
brought out that when the COM
pany attempted to employ col-
ored operators I'VE had a threat
ened strike on our hands" He
added that whenever the matter
had come up since. there had
been indications of a similar ac-
ton.
Mr.. Lane told reporters the
petition stemmed from a thesis
by L. Stanley Paige. a recent
graduate of the law school, on
the theory that discrimination
in public utilities. as quasi
governmental organizations, was
unconstitutional.
Hearing Resumed.
The transit hearing resumed
today at the District Building
after recess July H. The COM
pany is seeking to increase its
fare to 20 cents cash, five tokens
for 95 cents and abolition of the
weekly pass.
The commission is expected to
hear from Fred Kleinman, an
official of the Illinois State
Public Service Commission, who
has been retained by the local
commission to look into Capital
TranSit's rate of return.
Earlier today financial ex-
pert, specializing in utilities, tes-
titled he knew of no case where
increased fares drove away pas
Sengers to the point of a di-
minished return by the transit
company.
William r. Gilman, of New
York. made the statement under
questioning by Commission
Counsel Lloyd B. Harrison.
Mr.. Harrison referred to
earlier testimony by a transit
witness indicating that the in
creased rates would cause a de-
cline of some % million fares a
year.
Question of Subsidy.
Mr.. Gilman said he thought
that if the necessary rates to
keep the transit company going
ever became so high that pas
sengers would not pay them,
maybe we'll have complete SUBJ
sidization of transit industries"
But he said he did not think
that would happen.
Mr.. Harrison, assuming a IA
per cent drop in passengers from
the proposed fare increase, asked
Mr.. Gilman, How many IA per
cent reductions can this COM
pany stand before it reaches the
point of no pasSengers?"
Mr.. Gilman replied that in the
geometric progression that would
take inf1nity.
Mr.. Gilman contended that
transit companies generally had
a harder time with rates because
the customer pays twice a day,
while consumers of other utili-
ties, such as electricity, pay their
bills once month.
IF you increase fares" he
said, there will be some pas
sengers who will drop away, but
in the final analysis the con-
sumner of any public service has
to pay the cost of that service
and we must have mass trans
portation or our cities will stag
nate"
In EnKninn adnfe