Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-08-28
I ronsit Pact Pictured
As Benefitine All
But RumbIes Of Trouble Ahead
Are Heard at Union Headquarters

.Iminding them that any reduc-
Iltion in service would have to be
authorized by the Public Utilities
] Commission.
/ AS part Of the strike settle
'Iment. the city heads specifically
gave the company the right to
make economies as part of its
normal management operation
The company. looking toward Ii
Iquidating its assets in some
form, has given no indication 1t
doesn't intend to run as close an
Operation as possible.
| Major questions sim to be
answered relate to future oper-
Iators Of the transit facilities and
1.-THE Commissioners stated inten-
ton that streetcars be eliminated
from the new system.
Gen. Lane in his radio broad
cast said taxpayers had had two
main fears in connection with
the strike settlement-(D the
possibility Of picking up any de-
felt for the coming years tran
lsit operation and co the posi-
bility Of public ownership Of the
system after next August.
The general noted that the
settlement terms voided any city
liability for operating deficits OF
any kind and said developments
have strengthened the prospect
of profitable private transit oper-
alton in Washington"
Convention Discussed
One Of the major incentives
to private investors. he said, will
be an all-bus operation with
none Of the problems Of getting
rid Of streetcars.
Gen. Lane indicated that re-
moval Of the streetcar rail net
work by Capital Transit-at its
own expense-also would benefit
taxpayers greatly.
In other cities, he explained,
conversion to all-bus operations
Fhave involved write-offs Of ex-
pensive streetcar properties.
This write-off often has taken
the form Of allowances to the
operating company Of increased
depreciation for q number of
years. transit riders sharing the
higher operating costs resulting.
''Tranit riders in Washington, {"
he said, ARE not being asked to
carry such a load in future
years"
Gen. Lane said streetcars cost
more per passenger mile" to
operate than buses. So an all
bus system here, he said, should
bring operating cost reductions
which would have "a very sig
'nif1cent effect on the fares"
Would Aid Traffic
Gen. Lane said the streetcar
track removal program also
would greatly aid traffic move
ment and result clearly" in
lower costs Of new highway i'm
provements. These savings, he
explained. would result because
improvements need not be as
complex with tracks moved from
major auto routes.
AS far as Capital Transit stock i!
holders are concerned. Gen. Lane
noted that Louis E. Wolfson,
Capital Transit board chairman,
already has promised on liquida-
ton more per share than the
stock was worth in 1949. This,
the general sal. would be in adj
dition to the very liberal divi-
dends paid since that time"
Gen. Lande said questions (by
Capital Transit oficials) also
have been raised as to the effect
of the Capital Transit settle
ment on the security Of other
public utilities to operate with
out interference.
Looking to Deadline
Gen. Lane said the Commits
.sioners stepped into the transit
strike mot to settle q labor dis
pute" but because Of q manage
ment which refused to accept
its responsibilities as a public
utility operator"
II anything. he added. the
Commissioners action should
strengthen our other utilities in
the public knowledge and con-
f1dence they are doing a good
lob"
Gen. Lane, answering q ques-
Ition, told the radio audience he
had no knowledge about how
many passengers Capital Tran
sit had lost as a result Of the
strike.
And he said he wasn't sure the
icity would have a clear picture
by October 10-the deadline date
flor new bidders who want to take
over the system.