davidaulloa/AmericanStories huggingface dataset:
Evening star., 1955-07-12

these largest companies pay
their workers as much"
The union struck for an hourly
increase Of IS cents for operators
and 81 cents for top mechanics.
which would raise their re-
spectiye maximum scales to $2.15
and $2.34 an hour. Presently
operators receive $1.9o and me-
chanics $2.03.
WOlfson Offers Proposition
Mr.. Broyhill said the CONVEX
sations with Mr.. Wolfson and
company officials were friendly.
But it was pointed out to Mr..
Wolfson. controversial absentee
chairman Of the company, that
he owed something to Washing
ton in "civic service"
Mr.. Wolfson, who thinks in
terms Of big money, Immediately
countered with an offer to back
up his avowed civic-mindedness.
He said he now owns about S
per cent Of Capital Transit stock.
He said he was willing to in
crease his holdings to 20 per cent
and declare a flve-year morato-
rium on dividends if four public
spirited Washington residents
would each buy 20 per cent and
also forego dividends for that
period.
Mr.. Wolfson said he was anx-
ious to settle the strike.
Twice during the day he dis
avowed his intention Of selling
out of Capital Transit, a plan
critics often have speculated on.
Mr.. Mcmillan said the CIC
chairman denied reports he
wished to get rid of all his stock.
Rush hour traffic, which began
Strengthening out soon after the
strike began, moved smoothly
again this morning. the Ameri-
can Automobile Association said.
Few tie-ups were reported as
motorists continued to ease the
peak load by starting downtown
earlier.
Evening star., 1955-07-12
TRANSIT

COntinueo from t1fSt rage
ing the truce, seeking to work
out contract covering all issues
in dispute.
Emergency Duration
The plan as outlined by the
legislators would be for an i'm
mediate fare raise through Pub
lie Utilities Commission. This
would raise the cost of tokens
from is to 19 cents, retain the
present 20 cent cash fare and do
away with the weekly permit.
This is the same boost now pends
ing in a company petition before
the commission.
While P. u. c. would be asked
to put in the increase for the
l20-day period voluntarily, a
joint resolution was introduced
to effectuate the fare increases
for the emergency period should
there be a hitch.
If collective bargaining failed
to produce a final settlement in
the l20-day period. the status
would revert to present condi-
tionS.
However, Mr.. Broyhill said he
was certain terms could be
worked out in that period. While
Congress would be adjourned
Evening star., 1955-07-12

committee Is the answer to our
problem.
Sure Of Accord
I have the greatest respect for
our Congress. To me, our Senate
and House of Representatives
represent the pinnacle Of the
democratic way of life. There is
no more able body Of legislators
on the face of the globe. II ali
of US deal with facts and get
out our balance sheets. our pay
sheets and our dividend sheets,
we are bound to find q speedy,
intelligent. just and practicable
way Of reconciling all differences
with fairness and reality.
In concluding, gentlemen, may
I state that 1t has been my policy
as chairman of the board Of the
company never to interfere with
the operating head of a COM
pany. Mr.. j. A. B. Broadwater
is president of Capital Transit
and is operating under a man.
date from the Board of Direc-
tors.
The Board of Directors makes
policy and Mr.. Broadwater exc
cutes that policy. Were I to at
tempt to interfere with Mr..
Broadwater. I would negate his
position entirely.
Evening star., 1955-07-12

into the position of being an ex-
Iception to this accepted business
philosophy. 1t would have to be
Operated as some sort of well
fare organization. with stock
holders sacrificing even the very
small economic return on their
investment they now receive.
Praises Transit Employees
We have no quarrel with labor.
AS matter of fact. I want to
pay tribute to the employees of
Capital Transit. They have been
loyal and efficient and have con-
tributed in large part to making
Capital Transit the finest trans
Iportation system of any city in
the land. It was the employees
who helped Capital Transit win
numerous safety and mainte-
nance awards during the past
five years. We feel that they
are entitled to a fair increase.
Yet the current requests of the
union, if met, would cost the
company an estimated 81 mil
lion additionally every year. Our
net income for the first five
months of 1855 was $421 ,237.
Assuming that the company's
net continued at this rate for
the remainder of 1855, this would
mean a net for the year Of a
little over 81 million, or one
seventh of the unions request.
i But our prospects are not even
that good. In May, 1855, we car
|ried 81 per cent fewer passengers
than in May. 1854; in the first
five months of this year we suf-
fered a 90 per cent drop in
riders.
] May operating revenues were
down $74,748 from last May, a
drop of 3.3 per cent, and for the
first five months of 1855 operat-
ing revenue was down $601 ,l48,
or SO per cent. What is the
answer?
!! Sought Fare Increase
We want to give the riding
public good service: We want to
serve this community respon-
sibly. We want to pay our en-
ployes fair wages, and we want
to protect the investment of our
shareholders. These are reason
able objectives in any Americans
Language. It was to achieve these
lobjectives, to avoid this strike,
that we sought to apply to the
P. U. c. in January for a fare in
crease. In its previous ruling on
fares. the Public Utilities Com
mission had granted a completely
inadequate increase, which pro-
duced only about half of the
revenue the commission pre-
dicted would ensue from it.
AS early as January, then, our
intention to obtain positive ac-
tion in the form Of a fare in
crease. in anticipation of the
wage increase we expected would
be asked in June. and for which
we have no funds, was not con-
sidered opportune by the P. U. C.
Our objective was not con-
sidered timely in January and.
despite the knowledge that the
labor contract was to terminate
Iir June, the Public Utilities Com
Evening star., 1955-07-12

mission suggested next fall as a
more likely time to plead our
cause.
The matter next was discussed
by Capital Transit's Board of
Directors, who appointed a spe-
cial committee. consisting Of
Messrs. Colclough. Donohue and
Bennett. to revisit the P. U. C. to
again alert this public commits
sion to the realities.
Fifteen Directors on Board
Now, particularly for the bene-
fit of those who have chosen to
represent our present difficulties
as a struggle between the riding
public and labor on the one hand,
and Louis Wolfson on the other,
II would like to call to your at
Itention that there are Is men on
Transit's board of directors, OF
whom I am but one, albeit chair
man.
Nine of the Is men are resi-
tdents of the District. ALI Is are
men of intelligence and integrity
and Of independent mind. Yet
the decision, so far as the need
flor a fare increase is concerned,
was unanimous among them,
made according to their indi-
vidual judgments as to what
is right and what is wrong.
Let me list for the record the
names Of the directors, which
Include these nine men:
William B. Bennett, 1000 Ca
thedral avenue N. w., Washing
ton. D. c., retired transit execu-
tive.
j. A. B. Broadwater. president
Capital Transit Co., Washington,
ID. C.
Robert C. Baker. executive
vice president, American Secur-
lity g. Trust Co., Washington
D. c.
F. Joseph Donohue, attorney
SOB D street NV, Washington,
ID. C.
j. B. Ecker, vice president,
Capital Transit Co., Washing
ton, D. c.
Vice Admiral o. s. Colclough,
dean GWU, Is Grafton street,
Chevy Chase, Md.
j. H. Flanagan. vice president,
Capital Transit Co., Washing
ton. D. C.
E. B. Gerbert. president. Uni
versal Investments, Florid a
Theater Building, Jacksonville,
Fla.
E. c. Giddings, vice president,
Capital Transit Co., Washington,
ID. C.
E. D. Merrill. retired president
of Capital Transit Co., Bill
Hawthorne street NV, Wash
ington, D. c.
1t. Gen. william H. H. Nor
IRIS, jr.. 1901 Connecticut avenue
NV, Washington. D. c.
Frank E. Weakly. president,
Sheraton Park Hotel. $500 Wood
ley road NV, Washington, D. c.
Cecil Wolfson, president,
Foundation Association, 100 Park
avenue. New York, N. Y.
Sam w. Wolfson, secretary
Southern Pipe Supply, Florida
Theater Building, Jacksonville,
Fla.
! The special committee ap-
Evening star., 1955-07-12
Statement by WoIfson
At Hearing in Senate

This Is a tert of the state
nent Louis z. Wolfson, chair
man of the board of the
Capital Transit Co., prepared
to deliuer at this afternoons
hearing on the strike before q
Senate subcommittee:
The current transit strike
which has crippled the District
Of Columbia for more than l6
days is distressing and deplor-
able. Like everyone else in WASH
ington, it is my ardent wish some
speedy solution will be found.
Apparently. q scapegoat on
whom to vent the resentments of
the community had to be found.
the victim of the great amount
of hate and bitterness engen-
dered by this most unfortunate
strike seems to be Louis e. Wolf
son.
I believe it important to sep
arate Capital Transit Co. and its
activities in the present strike
from the personal venom that
has been directed toward me.
Similar strikes have occurred
In other cities and the sole sub
ject for discussion in those COM
munities has been prompt set
tlement Of the strike and early
restoration Of the public trans
portation service. In the Dis
trict of Columbia, however, it
seems that the main subject Of
discussion has been Louis E.
Wolfson. One thing is certain
the activities Of Capital Transit
Co., the requirements of the rid
ing public. fair compensation to
its employees and a fair return
to its stockholders are great
deal more important than point
ing the finger of vituperation at
al. individual named Louis E.
Wolfson.
Telegram Distorted, He Says
My telegram offering to ap-
pear voluntarily before this COM
mittee was distorted into an &C
cusation that was trying to
evade appearance before this
committee. I was completely
available in California. was
openly registered in my own
name at hotels in Los Angeles
and San Francisco. Members OF
the press and others telephoned
these hotels and had no diff
Guilty whatsoever In reaching me
by telephone without needing to
identify themselves. But the
committee nevertheless found it
necessary to issue forthwith
subpoena. An endeavor to serve
me in the presence of photog-
raphers. which I interpreted as
an effort to humiliate me. was
made. I would not permit this,
but far from evading service,
made appointments with and
sent a telegram to the process
server, inviting service upon me
in person.
Incorporate and unjust ac-
eusations and unfair and untrue
charges designed to assassinate
my character have been made
against me. I will not. in an
swer. descend to the level of such
tactics, though well ! might.
Yet, feel called on to remark
that prejudging and publicly
castigating man without bene-
At Of a hearing is hardly the
American way of solving a prob
lem. In fact. the incitement oi
emotional hysteria has done
much to becloud the real issues
and to delay an expeditions set
tlement Of a critical and COM
plex problem.
Protests Attack on Honesty
Before we examine the record
and before we discuss the merits
of the situation, I wish to pro-
test these unfair and unjust at
tacks made on my integrity in
my absence. I am a responsible
business man, whose honesty is
vital to the welfare Of more than
Evening star., 1955-07-12

10000 stockholders Of the COM
panies with which ! am associ-
ated and to whom ] feel Q basic
obligation. ] resent the wild
and irresponsible statements i'm
pugning my honor that have
been made. i reject name-call-
ing as the weapon of the over
What purpose it
serves, I cannot fathom. To me
it is degrading.
Now, let us get to the real
issue involved: The settlement
of this strike and the restoration
of public transportation to the
citizens of the District of CO.
lumbia, and the return Of en-
ployes to their jobs.
I do not carry my duties as
chairman of the board Of direc-
tors of the Capital Transit
Co. lightly. I accept the full re-
sponsibility which that post i'm
plies. Therefore. it is with full
recognition of these duties and
responsibilities that ! charge
Robert Mclaughlin, a former
member. and Robert Weston.
now a member of the District
Public Utilities Commission with
complete blame for the current
crisis.
One of the bulwarks of our
American democracy is a fair
and impartial judiciary. The
p. U. c. is a judicial body and
must not be Influenced by preju-
dice. Under our traditions, if
a judge has any feeling of pref
udice in a case before him. he
will disqualify himself. BY his
actions and by his statements,
Commissioner Weston has shown
that he is prejudiced against
certain Of the officers Of Capital
Transit Co., as well as the COM
|pany. and for that reason he is
not qualified to sit in Judgment
with respect to amounts of fares
to be charged by the company.
He should disqualify himself in
order that a fair order will be
entered.
Restates 'Record Of Meeting
Mr.. Broadwater, the president
of Capital Transit, to whom thu
board Of directors has delegated
the responsibility of negotiating
with our striking employees, out.
lined to this committee some
time ago the record of severa,
meetings held with the P. U. C
by him and other company Off.
cials prior to June 30. I wish
to refresh your knowledge oil
these meetings here again, be.
cause I feel that only in this
way you gentlemen, the riding
public. the employees and the
stockholders will be able to Judge
impartially on whom the blame
for the present difficulties shoulc
rest.
I For several months we have
tried desperately to avoid 9
strike. No one ever wins a strike
Management, labor, and in this
case, the public too, are in.
evitably losers, regardless of the
final contract terms.
With this conscientious appre-
citation of the mutual welfare in
mind. as early as last January
the officials Of Capital Transit
made known its intention tc
apply to the P. U. c. for a fare
increase.
It has been stated repeatedly
at these hearings that the 2,20C
NATIONWIDE Capital Transit
shareholders are entitled to a
reasonable profit on their in.
vestment. and I was pleased tc
learn the position of the COM
mittee in that respect. This
country is a capitalist nation
and we are fighting all over the
world to preserve this structure
Profit is an intrinsic part of our
Icapitalistic system. But without
a fare increase. in order to grant
the requests of its employees
Capital Transit would be forced
Evening star., 1955-07-12
Sure Of Accord

committee is the answer to our
problem.
Evening star., 1955-05-22

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Evening star., 1955-05-22
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Evening star., 1955-05-22

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Evening star., 1955-05-22
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Evening star., 1955-05-22
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Evening star., 1955-05-22
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Evening star., 1955-05-22
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Evening star., 1955-05-22
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