Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-04-10
Two on Utilities
Board Biased,
etc Head Says
Broodwoter Charges
Civilian Members
Bar Fair Return

lie Utilities Commission today
was in weekend recess, after a
bitter session in which the COM
pany president called two COM
mission members CHASED and
prejudiced."
J. A. B. Broadwater. Capital
Transit president, made the
charge yesterday against Com
mission Chairman Robert E.
Mclaughlin and member Rob-
ert M. Weston. The transit Of
fetal specifically exempted the
third member of the regulatory
body, Brig. Gen. Louis w. Prem
tiSS, who is also District Engi-
l1eer Commissioner.
The week-long hearings will
be resumed on Monday. with the
transit union presenting its wit
11esseS to testify on the practices
Of the company.
The commission investigation
has two detectives: A report to
the u. S. Court of Appeals
for. the District of Colum-
bia must be filed by April 10
to help the court determine
whether Capital Transit should
be enjoined in the public inter-
est from retiring $50 million in
bonds and distributing a 1884,
900 cash dividend declared last
February IS. simultaneously the
commission seeks to prove on its
own whether the company's lat
est financial transactions require
restrictive action to protect the
public.
Temporarily Stayed.
= The appellate court has tenn
porarily stayed the bond re-
demption and dividend distribu-
ton moves. On appeal is a re-
cent decision by the U. S. District
for the District of Columbia re-
fusing the commissions in
junction petition.
It was the subject of the COM
pany's right to fair rate of re-
turn on it's investment that
prompted Mr.. BroadWater to
make his comments.
In the first place, the COM
pany official said. the company's
present 4.3 per cent rate Of re-
turn is most assuredly" too low.
--"I will go further" Mr.. Broad
water said. II don't think we will
ever be permitted to make fair
rate of return as long as these
two civilian members are on the
commission.
Commission Counsel Lloyd B.
Harrison asked him who he
thinks should regulate public
utilities, the company or the
commission.
keep Noses Out"
well, of course the consti-
tuted authority should regulate.
Mr.. Broadwater responded. But
the Public Utilities Commission
and am speaking specifically
of the two civilian commits
sioners-should keep their noses
out of the management of the
affairs of the company, and /
will keep my nose out of the
regulating end of it."
Commissioner Weston, appar-
emily unruff1ed, inquired wheth-
er Mr. Broadwater recognized
responsibility to the public, since
transit is a public utility.
81 feel very great response
bility to the public the transit
official responded.
t"Well, how do you endeavor
to meet this responsibility" Mr.
Weston asked. II have in mind
that your blasts at the commits
sion do not tend to improve your
relations with the Public Utili-
ties Commission"
Responds to Question.
Mr.. Broadwater Redeemed, re-
moved his eyeglasses and leaned
back in the witness chair three
feet away from his interrogation
Then, meeting Mr.. Weston's
gaze. he declared:
Since you ask, I'll give you an
answer. 1t is my considered
opinion that when they (Mr.
Mclaughlin and Mr.. Weston,
both Republican appointees)
took Office. they started out to
save the public, riding a white
bull elephant down Pennsylvania
avenue.
II don't ever expect fair treat
ment out of either you or Mr..
Mclaughlin. You are both
biased and prejudiced against
Capital Transit. I hope I am
mistaken, but that is my candid
opinion"
~.Mr. Weston promptly denied
prejudice. 1--WE are just doing
the best job that we know how"
he said.
JeSts on Uniform.
Chairman Mclaughlin inter-
jected laughingly that. just to
make sure he is not confused
With the civilian commissioners.
Gen. Prentiss will attend future
sessions in uniform.
To which Mr.. Broadwater re-
piled with a tight smile: can
Army general will always be an
Army general, whether he's in
uniform or in his BVDs."
4. Mr.. Broadwater boiled over at
another question directed to
him by Mr.. weston. The Com
missioner had asked him what
the purpose was in borrowing
SIS million from American
Security and Trust Co. in
conjunction with announcing
retirement of another debt, the
$50 million in bonds.
stWaS that loan as q favor to
one of your directors?" asked
Mr.. Weston.
"I resent that on behalf Of Mr..
Baker and Mr.. Bell" retorted
TAI