Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-12-29
Agency May Decide
On An-Bus Transit
Tentative Plans
Would Abandon
Streetcurs
By HECTOR MCLEAN

would be left up to the proposed
three-man transit authority be-
ing planned by the District Com.
missioners.
This was indicated last night
by Commissioner Samuel Spen-
Ger, in outlining the city heads
thinking on proposed legislation
to set up an independent Federal
agency to take over the dying
Capital Transit Co. franchise
next August IA.
All consideration so far. he
said, is purely tentative.
He outlined the plans in re-
Spouse to questions, after refus-
ing to release for publication the
draft of a bill by Public Utilities
Commissioner Robert M. Weston
to set up such an authority.
Mr.. Spencer spoke after the
Commissioners completed an ale
afternoon session on the bill.
Resume for Congress
Mr.. Spencer said the Com
missioners probably will not
manage to have the bill COM
pleted for submission to Congress
by the time 1t reconvenes Janu-
airy 8. However, he said, the
Commissioners will send a report
to the chairmen Of the House
and Senate District Committees
providing an Official resume"
of transit developments since
Congress adjourned last August.
Today. the group represented
by former Senator Millard E.
Tydings scheduled a mid-after-
noon conference with the District
Commissioners. This group Of.
Baltimore businessmen and oth-.
Iers had earlier bowed out Of the
picture. But a lengthy confer.
ence was held Tuesday in Balti-
more at which was discussed
preparation of a new application
for the permit to operate the
transit facilities here.
Meanwhile, minority Capital
Transit Co. stockholders met to
form a committee to protect
their interest as the firm APP
breaches the date on which 1t
will die by act of Congress.
The session, attended by
nearly Is stockholders. was pre-
lsided over by William B. Willard.
former vice president of the
National Savings & Trust Co.
and trustee of the estate OF
Henry K. Willard.
i He said the meeting had APP
pointed an Executive Committee,
the members of which he refused
to identify. to set up a perma-,
nent organization. Mr.. Willard
said the group had no definite
plans but felt the individual
stockholders in the area should
be represented" before Congress
land other agencies.
Control of the company is in
the hands of Louis E. WolfSon,
Florida multimillionaire and
owner of the largest single bloc
of stock.
| At another session yesterday.
President Edward r. Carr of the
Washington Board of Trade, met
with two applicants for the CTC
franchise in recent dealings with
the District Public Utilities
Commission.
They are I. William Stempil
and Morris Fox, president of the
b. q F. Transportation, Inc.
Mr.. Carr said he and William
Press, executive vice president Of
the board. talked to them,
listened to their plan and prom
Used to see if we could be of any
assistance.
Mr.. Spencer said the Commits
sioners were refusing to release
the draft of Mr.. Weston's bill
because there are so many
things to be worked out" Also,
he said, a bill is being drafted by
Blyth & Co., Inc, New York and
Chicago investment bankers.
Aua;ts nl,,&L n;vv
1--WE are waiting to see what
the bill being prepared by the
Blyth people looks like and won't
attempt to make any decision
until then" he said. Mr.. Spen-
Ger said, however. that I'VE en-
Ivisage an authority sufficiently
broad either to take over the
streetcar system or to run an ALL
bus operation"
He declared the Commissioners
plan to leave it up to the au-
Ithority to start new system or
take over all or part of the ex-
listing Capital Transit setup by
purchase or condemnation.
He said mo final decision" has
been reached on whether COM
petitive bidding would be re-
CURED for selection of an under
writer to float the revenue bond
issue with which the authority
would finance itself.
I'm this type of financing"
Mr.. Spencer said, it may not be
feasible to handle the bond issue
through competitive bidding.
This is rather a special situation
in which it may we'll be better
to handle it by negotiation.
1T is different from State
and municipal bond issues which
are supported by the taxing
power" of the Government.
Mr.. Spencer said the Weston
draft spelled out that the bonds
also would not constitute a lien
on the authority's property. But.
Mr.. Spencer said. I'm open
minded on that point. We might
get better interest rates" if the
bonds were backed up by mort
cages on the property.
He said the bonds would not
be based on the taxing power
|of the District or Federal Gov.
eminent and thought this should
be spelled out in the legislation
to be sent to Congress.