Evening star., 1955-11-26
Final Try0pens
To Get Transit
Private Capital
P. U. c. Sends Letters
To Five Applicants
For Last Interview


Faced by failure of would-be
bus operators to present salts
factory plans to take over the
dying Capital Transit franchise
next August IA. the District
Public Utilities Commission to-
day made a "last-ditch effort
to persuade private enterprise"
to take over the system.
Chairman George e. C. Hayes
Of the District Public Utilities
Commission released copies Of
identical letters sent to I'VE ap-
plicants asking them to come in
for final weeding-out interviews
which would let the agency de-
eide If any Of them are finan-
cially able to finance a transit
system.
No Satisfactory Proposal
He said the commission, which
last week announced It had not
yet received any satisfactory
proposal from private operators
to take over the CTC franchise
next August Is. viii try to work
out where the deficiencies lie" in
the applications.
Mr.. Hayes declared the COM
mission hopes this viii let 1t de-
eide to rule out some Of the ap-
plicants and select one or two
whose plans would be made the
subject Of a public hearing.
II this effort fails to produce
. satisfactory plan, he said, 1t
win be necessary for the commits
sion to start serious planning for
Government ownership OF the
transit system.
Although the commission, at
one time yesterday, considered
setting an absolute deadline for
the applicants to produce proof
Of their financial backing, he said
1t was decided this was not q
proper approach.
The five applicants are former
United States Senator Millard e.
Tydings. Democrat Of Maryland.
representing q group Of Balti-
more investors; !. William Stem
pill. counsel. for the Washington
Rapid Transit System: Max M.
Kampelman, counsel for i group
Of unidentified clients: Morris
Fox. president Of the B. Il r.
Transportation Co., and Gregory
Hankin, former commission
chairman and counsel for the
Metropolitan Washington Tran
sit Cooperative.
Points to Deficiencies
AT an unusual Saturday morn
ing meeting. the commission
drafted q letter which was sent
to all five applicants, The letter.
over the signature Of Mr.. Hayes.
said:
This letter refers to deflcieI1-
'cies which still exist In your
application fled under our invi-
tation Of August %, 1855, which
have in general been noted by
us In q public release of Novem-
ber 10. 1855. copy herewith.
The Public Utilities ComrnIs-
sion is deSirous Of giving all
applicants every opportunity to
correct the deficiencies In their
respective applications and 10
present q feasible plan for the
creation of a mass transit serv-.
ice to commence operation Au-
gust Is. 1856.
The time Is presently at hand
when the Public Utilities Com
mission must make its final con-
cliision as to the feasibility Of
the proposal made by you.
Under these circumstances
and because Of our earnest de-
sire to allow every opportunity
for the creation Of q privately
owned transit system. we wish to
consult with you about the pres
ent status Of your proposal.
"Will you. therefore. immedi-
ately arrange an appointment
with me for such q conSulta-
tion?a
Suit on Fares Filed
Meanwhile, q group Of riders
today filed suit in District Court
seeking to have set aside the
new faces granted last Au-
gust.
The complaint charged that
the new rates were illegally
granted by the PUG and the
District Commissioners In that
no public hearings were held.
Also attacked, on the same
grounds, was q service waiver"
granted the transit company in
which the company is permitted
to effect certain reductions IN
service II necessary. The suit
was fled by the Citizens Transit
Improvement Association, South
ern Building, and q group Of
individuals. Named defendants
were the PUG, the District Conn
nlissioners and Capital Tran
sit Co.