Evening star., 1955-07-17

tiyes he said had given sneour-
agement.
Last night Mr.. Spencer. ap-
pearins on the radio program
Report to the People. on WWDC
was asked what would happer
II Congress does not pass tha
legislation.
Wei. " he answered. ..mosi
labor disputes end sooner o.
later
When he was asked by onl
of the newspapermen participat.
ing In the program. '.Haye yot
talked to any of the Capitol Hi
leaders on whether they viii con.
slider this bill favorab1y? Mr.
Spencer answered
Yes. We had 4 meeting witt
Senator McNamara, Senator
Morse and Senator Case. Sena.
tor Neeiey also was present arlf
there were indications the,
would receive the bin very ia.
vorably." +"
Senator Neeley Is chairman o!
the Senate District Committee
Senator McManarna is Dtstric
Subcommittee chairman, AMI
Senators Morse and Case ar,
committee members.
Spencer Optimistic
Mr.. Spencer went on to sa,
there had been discussions witt
Mr.. Mcmillan and Mr.. Smith
and they indicated they wer,
favorable. He included Mi
Broyhiil in this list, but Mr.
Broyhill's statement was q con
tradiction.
Although there are only two
weeks remaining before Con
gress' planned adjournment
date, Mr.. Spencer was optimistic
about the proposed bill.
He foresaw the possibility O
litigation. He said the compan!
might sue II there were M
profits under Commissioner man.
agement. Or 1t might sue ever
liz there were profits. claiming
it was not receiving just com
|pensation as required by ths
Fifth Amendment.
He said, however. there is
strong argument under recent
court decisions that q company
taken over during o strike wa.
taken over when it had nc
profits, and that any later profit
would be better than what Il
had been earning.
Wolfson Unreachable
Louis e. Wolfson. Florida
financier who Is board chairman
of Capital Transit. could not be
reached for a statement. He /,
registered at the Hotel Pierre
in New York. but the Motel said
he was out.
Mr.. Wolfson's brother. Cecil
Wolfson. was reached by tele-
phone in New York. He is q
director of the company. He
declined comment and referred
inquiries to Mr.. Giddings.
It was MIR. Giddings who sale
the company would comply with
the law. but warned Of a lawsuit
He said the Commissioner
proposed action lis q seriou.
matter for which the Commits
sioners must take full respon.
sibility."
Mr.. Spencer said it was hoped
that under management by thu
Commissioners, operating offi.
cials Of the company would re.
main In their jobs.
"That," said Mr.. Giddings, 4.
a bridge we win cross when WI
come to It."
WoIfsOn's warning
Testifying before q Senat.
District Subcommittee last Tues.
day. Mr.. Woifson warned tina
lifting bis company's franchise
would have a tremendous effect
on other public utilities here
The hearing was on d bill b.
Senator Morse to revoke tn,
company's permit to do business
Mr.. Wolfson testified that I
could brighten capital away.
He added: Il believe that 4
your bill goes through and yos
take the franchise away from
Capital Transit, I think it woult
have a tremendous effect on ths
Potomac Electric and other util.
itiesthe Washington Gas. th,
telephone company-for futurt
financing.
II think you will throw /
psychological fear on the finan.
cial market. saying that any.
thing can happen during |
strike, and ] do not think tht
finances viii be available"
Officials of other utilities IL
Washington declined comment
last night on the Commission.
ers' proposed legislation.
Delay Explained
The Commissioners had post.
|poned their announcement Fri.
day because Of involvement il
the latest effort to settle tn,
strike made by Mr.. Mcmillan
and MIR. Broyhill.
Mr.. Spencer said last nigh
that II the company and thI
union are able to reach an agree
|ment. the Commissioners woult
turn over operation TO the pri'
vate management until the ens
Iof the year.
win Seek New Operator
At the end Of the year, MI
Spencer said, Capital Transi
would have no further right Il
operate In the District.
During the year. Mr.. Spence