Evening star., 1954-05-19
Utilities Control
|sApproved
bySenators
Increased Powers
For Commission
Get Unanimous OK.
By Don S. Worren


tee. without a dissenting vote,
today quickly ordered farorable
reports on a series of bills to
strengthen the powers of the
Public Utilities Commission over
the Capital Transit Co. and
other regulated local utilities.
The bills were approved in the
forms. as amended by the Com
merce subcommittee, headed by
Senator Payne. Republican, OF
Maine, who also headed the
nine-month special subcommit-
tee inquiry into the problems of
WaShington's mass tranSporta-
ton services.
The full committee gave
unanimous approval to a bill
to give the utilities commission
the power to prohibit payment Of
dividends by any of the District
utilities if it finds the dividend
payments would impair the
utilities resources or ability to
render service.
Conflict" Measure Approved.
1t also unanimously approved
so-called conflict of interest
measure modelled after the law
OF Illinois. This would prevent
for two years members of several
District agencies from represent
ing regulated District interests
before those agencies, in case
they resign to take jobs with
those concerns.
This would apply to members
and employees of the utilities
commission and the Alcoholic
Beverage Control Board and to
the superintendent and deputy
superintendent of insurance. A
move for such a restrictive meas
ure developed last year after
James H. Flanagan resigned as
chairman of the utilities COM
mission to become a vice presi-
dent of the CTC. The bill. how
ever, would not be retroactive
and would not apply to Mr..
Flanagan.
The committee also reported
without an adverse vote an omni-
bus transit bill which had been
recommended in amended form
oy the Commerce subcommittee
1hlS strengthens the hand of
the utilities commission in vari-
Gus ways, notably to give it
power to regulate school chill
dren'S transit fares and to ad-
just them upward to as much as
half the adult fare, now 20 cents
cash; and to empower the util-
Tues commission to approve or
dlSapprove any proposed acquisi-
t1on of controlling interest in a
regulated District utility.
Power Held by ICC.
Such power to pass on pur-
chase of controlling interest now
is held by the Interstate Com
merce Commission, but not by
the District commission
Full committee action was
postponed on another bill recon-
mended by the Payne subcom-
mlttee. This would have given
the utilities commission power
TO limit and regulate the number
OF taxicabS licensed by the city.
Senator Morse, Independent,
OF Oregon, said he was not pre-
pared to vote today on this bill
and wanted time to study the
record taken at recent hearing,
There was no conflict over this
and Committee Chairman Case
said action would be postponed
until the next committee meet
ing
Senator Payne said his only
concern about the taxicab limi-
tation bill was whether it might
lead to a monopoly by the big
ger cab companies. He said the
measure had been amended so
as to take care of that question.
The revised measure, he ex-
planned. directs the utilities
commission to preserve the pres
ent ratio of taxicab control as
between fleets operated by cor
porations and the individually
owned independent cabs. He
said he thought this would pre-
vent any possibility of a mo-
nopoly.
One Cab for Every "a.
The Maine Senator said his
subcommittee was convinced
limitation powers should be
granted the commission because
Washington now has one cab
for every "a residents as COM
pared with one cab for every
500 to $500 residents in most
cities of comparable size
Under a reduction plan no
present hcenSee would lose his
license or be denied renewal but
no additional licenses would be
Issued until a reduced number
liked by the commission had been
achieved by voluntary Surrenders
or revocationS for cause, No
outstanding license, however.
could be sold or transferred ex-
cept with commission approval.
Taken out of the omnibus bill
by action of the Payne subcom-
mlttee was a section to REQUIRE
the stockholders of the Capital
Transit Co. to elect three pub
lie interest" directors on the
CTC 15-member board of di-
rectorS from among 10 nomina-
tons to be made by the District
Commissioners. This legislation.
however. is to be rewritten into
a separate bill for intended later
action by the Payne subcommit-
tee and then the full committee.
Other Provisions.
Aside from the provision CIV
ing the utilities commission
power to raise the Scent school
children'S fare, now fixed by an
act of Congress, the omnibus bill
would: