Evening star., 1954-01-04
Transit 10 Ask
Fare Hike0ver
One Pending
President Serves
Notice as Senators
Resume Inquiry

apply 1Or a 1urLner increase In
streetcar and bus fares in addi-
ton to what it gets out of its
pending rate boosts requests.
The announcement was made
by J. A. B. Broadwater, presi-
dent of the company, in a letter
to the Payne subcommittee of
the Senate as it resumed today
its inquiry into Washington
transit problems.
The Public Utilities Commits
sion is expected to give a decision
in about two weeks on the COM
pany's requested increase in
fares. under study since last July.
Nine months ago the CTC ap-
piled for new schedule of rates,
asking for 20-cent cash fare,
sale of five tokens for 95 cents,
and elimination of the weekly
pass.
Letter Put in Record.
Chairman Payne of the Sem
ate subcommittee made the let
ter a part of the record of the
subcommittee hearings. with
out comment.
Mr.. Broadwater ended his let
ter with warning the day may
come when the transit company
would consider surrender of its
franchise and liquidation of it's
investment.
The transit company president
said the situation of the COM
pany would only worsen unless
the government and local busi-
ness groups got behind a pro-
gram to help the company. He
went on: Under these circum-
stances the day is fast approach
ing when private ownership will
have to give serious conSidera-
ton as to whether it wants to
continue operations or whether
it will be more prudent to sur
render its franchise and iqui-
date its investment"
Mr.. BroadWater struck out at
what he called the archaic"
regulatory procedures and de-
clared the company found itself
lin an impossible situation"
Within the next six months, he
argued, the company faced in
creased costs that would amount
to nearly ST million a year. Much
OF this would come from a con-
tracted further increase in the
wages of employees.
First witness on the stand to-
day at the Payne Subcommittee
hearings was Chairman Robert
E. Mclaughlin of the Public
Utilities Commission. He was
strong opposition to legislation
proposing the creation of a met
ropolitan transit commission and
to suggestions for public owner
ship of the CTC.
Dividend Authority Urged.
Mr.. Mclaughlin also:
l. Urged passage of pending
legislation which would give the
commission authority to regulate
dividends paid by public utilities
here.
2. Asked Congress to give the
commission power to set tenn
porary rates during a rate dis
pute upon proper showing of a
need for change pending a more
complete investigation of the
subject matter He said such
authority should be for rate re-
ductions as well as for rate in
creaseS.
Also waiting to be called to-
day were District Commissioner
Louis w. Prentiss and Robert M.
Weston, other members of the
commission.
WOlfsOn Plan Criticism Hit.
Mr.. Broadwater took a lab at
the reaction given by newspapers
and some public officials to the
plans suggested by Louis E.
Wolfson, chairman of the board
OF the CTC, for achievement Of
a 15-cent fare for through serv-
ice in the Metropolitan Area.
Under this plan, being considered
by the Payne subcommittee,
there would be merged operation
of the CTC and three major bus
companies under an operating
regional transit authority.
Revenue bonds would be is