Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-02-25
CTC and Commission
Battle as Study Of
transportation Nears
BY John w. Stepp


and the District Public Utilities
Commission has provided q
hostile setting for discussions
next week on mass transit prob
lens in general.
Chairman Payne of the spe-
cal Senate subcommittee in
vestigating area transit prob
lens last week ordered a report
by March 8 by the utilities COM
mission, District Commissioners
and Capital Transit officials on
speeding service at reasonable
cost to the passenger.
The prospect for serenity sur
rounding the scheduled con-
clave was first blasted yeSter-
day by j. A. S. Broadwater,
president of the transit COM
pany.
Mr.. Broadwater charged that
the fare increase decided by the
commission, effective January
81, is inadequate. on the basis
of passenger revenue figures
recorded by the company in the
first two weeks.
Called Miserable Failure.
The commission and its stan.
he said, fell fiat on their faces"
in predicting anticipated reve-
nueS.
THE new fare" Mr.. Broad
water added, lis a miserable
failure. This verifies our con-
tention that the commission is
but rendering lip service to
maintaining Capital Transit in
a financially healthy condition.
If Capital Transit is to endure
under private ownership and
operation, reliastic rather than
lip service. approach is nee
eSSary."
Capital Transit, the company
official reiterated, will approach
the commission soon for a new
increase.
To these contentious the two
civilian members of the three
man commission retorted:
This appears to be another
one of Capital Transit's inflam-
matory statements designed to
lead the people into a mood for
acceptance of public ownership
of the transit company"
PrentiSs Awaits Test.
These two members, Chairman
Robert E. Mclaughlin and
Robert NJ. Weston. were obvi-
ously irritated by the Broad
water statement. Brig. Gen.
Louis w. Prentiss, Engineer
Commissioner and the third
member of the utilities COM
mission. was more reserved.
I'VE must wait longer than
two weeks to determine whether
a trend is reflected in the re-
ports of the first two weeks"
Gen. Prentiss observed. There
is always a decline in passenger
revenues Just after a fare in
crease We are experiencing
what has been expected"
But Gen. PrentiSS' colleagues
declared that Mr.. Broadwater's
statement demonstrates a lack
of a proper sense Of responsible
ity to the community"
The transit company views.
moreover. minimize the posi-
bility for wholesome co-opera-
tive action by city officials and
transit riders for successful con-
tinuation of private transit OPP
Grafton" Mr.. Mclaughlin and
Mr. Weston charged. The COM
pany, they added. has "vitiated
all possibilities that the Senate
committee had in mind regard
ing cooperation between city
and company officials"
Weston Hits Dividends.
The Capital Transit state
ment, furthermore. shows that
"the financial management of
the company-as opposed to the
operational ends keeping its
eye exclusively on the stockhold-
ers to the detriment of the pub
lic," the two civilian commits
sioners declared.
Critical of the expansive div
idend policies of the company
since the present management
took over. Commissioner Weston
declared that mo other transit
company in the country can af-
ford such dividends"
They (the company told u.s."
Mr.. Weston said. that they
don't intend to change the $3.50
yearly dividend they have been
declaring"
When the commission fore
cast the company's earnings un-
der the new fare schedule. it fig
ured the dividends would be
$1.37 per share. compromising
for a 3.6 per cent normal" ex-
pected decline in the number of
passengers. The passenger rev.
enue decline in the first two
weeks of the present fare struc-
ture has been placed by the
company at between and near
ly 8 per cent below the compar-
able weeks in 1858.
They can't expect to work a
miracle or for us to perform
one" Mr.. Weston declared.