Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-08-22

profit to Capital Transit during
the next year-but whether one
materializes will depend on the
validity of estimates for both
company operating expenses and
revenues from the new fares.
5. The Commission. which
under the new law had to rec
ommend the new fares before
the city heads approved them
did so by a 2-to-l vote. with
Commission Member Weston vi
gorously dissenting.
8. Capital Transit official.
said the Commissioners have
agreed to review the fare struc-
ture at the end Of October to
see whether any upward revision
is needed to keep the company
from operating "in the red"
Z. The Commissioners n ew
fare order required that Capital
Transit's operation remain I'M
der Public Utilities Commission
regulations, either existing or as
they may be revised. But it said
such revision shall not az direct
the removal of any streetcar
tracks prior to next August a.
90 "encroach upon or interfere
with" Capital Transit's ordinary
management OF business or 80
change the terms under which
the company is now permitted
to effect reductions in service
in the District.
Simple Labor Contract
Sha-pest surprise in the en-
tire settlement, meanwhile. was
the form it took. "a simple labor
contract with the union rather
than an additional operating
contract with the District.
The Commissioners disclosed
on Friday that serious attention
was being given the possibility
of a direct union contract, by
passing the city pact.
At that time. however, the
Commissioners to Id reporters
that their authority under the
new transit law to apr owe fare
increases would hold only in the
event of city-company contract
II the company did not enter
such a contract. the feeling was
1t would have to take its chances
on getting an agreeable fare
schedule from the Public Utilities
Commission after ordinary rate
hearings.
"Initially," Gen. Lane said
I'VE took the position it was
either o contract with us. or q
direct contract with the union
without using the new laws
authority at ALL"
City attorneys agreed with
those Of the company. however
that under the law the Commits
sionerj could set transit fares
on recommendation of the utili-
ties commission, regardless OF
whether a city company con-
tract was signed
Capital Transit strategy was
determined as early as Saturday
afternoon. when the last mara
thon negotiating session began
in Commissioner Spencer's Of
fee.
Company officials decided to
look at the utilities commission
recommendation and If 1t was
favorable. propose that 1t be-
come the basis for an immedi-
ate settlement with the union
The company decided the initial
commission proposal was toe
low. and actually began work
on a District-company contract
Saturday night.
Further negotiations, how.
ever. developed that only an ad-
ditional scent increase in the
weekly permit cost would pave
the way for the settlement. Gen
Lane called his fellow utilities
commission members to the Dis
trict Building shortly after mid
night, only Mr.. Weston dissented
and the final fare formula was
taken back to the city heads
for approval.
Mr.. Broadwater, in his state
ment, said the main reason fol-
contracting only with the union
was that this method was
the quickest way of getting the
wheels rolling. now that the
differences with the union are
resolved"
Mr.. Broadwater said a compact
with the city would have
involved complicated formulas
for determining possible deficit.
for which the city would be
responsible which would have
perhaps held UP the resumption
of service another week
Adjournment Blocked
Actually. 1t was understood
there were strong sentiments fol
adjourning the negotiating SEES.
sion late Saturday night, anc
calling a special meeting of the
utilities commission for yester.
day.
But. repeatedly at the insist.
ence Of Commissioner Spencer
the group remained in session
until the final agreement was
worked out
Just after midnight, the Com.
missioners summoned Walter J
Bierwagen, president of the
Transit Workers Union. He ar.
rived at the District Building
shortly before / am, the crucial
contract was signed and the sec.
ond longest transit strike in the
Nations history came to an end
TRAFFIC