Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-12-16
Capitol Transit Hearing
On New Operator Ends

he would be president and that
the directorate would include
Ioflcers of two local banks, the
president of 4 large supermarket
chain, the presidents of two of
the largest department stores.
ian officer Of q large real estate
company and other business and
professional men.
The Washington Rapid Trans
liz System file contained the
statement that private investors
could obtain a return In the
Ineighborhood Of s per cent on
la gross yearly income Of $25
million. It said the company
would post a 81 million perform
ance bond If awarded the fran
lchise before January 81.
| Another statement was that
commitments had been received
from investors for approx
tmateiy 81 Eiillion. Still another
statement was that q certified
check for $250Do0 had been
rendered Mr.. Wolfson toward
purchase Of Capital Transit
stock.
After Mr.. Tydings Withdrew.
IMr. Harrison maintained that
the commission had nothing be-
lfore it. The commission, how
ever, continued to hold the hear
ling. which became protracted.
Mr.. Tydings said he was ask
| ing for a continuance" to see
lit q satisfactory arrangement
could be effected with the union.
He was asked later II he was
confident this could be done. He
used the word hopeful" instead
Iof confident.
Rankin on Stand
Mr.. Hankin took the witness
stand for a presentation Of the
ico-operative organizations pro-
i
posal.
He said that a single fare
Iof Is cents is proposed with
three tokens for so cents. a s.
cent school fare and q l0-cent
shopping fare. A passenger
could transfer once. but would
have to pay 5 cents for a second
transfer.
He said the fare would mean
Ia 8 per cent reduction Of Dis
ltrict fares and, since there would
be only one fare for the whole
system, these fare reductions
would result: A 80 per cent cut
lin the District-to-the-P entagon
ride: a As per cent cut for the
first zone in Maryland. Sc per
cent in the second zone, So per
cent in the third and SO per
cent in the fourth.
Generally. co-operatives are
not taxed on income used to i'm
prove service and make 1t less
exp >lsive, and are only taxed
ON the 6 per cent return made
to members. Commissioner Wes-
ton wanted to know II Mr.. Ham
kin had checked the tax pro-
visions with the Internal Reye-
nue. Service.
Mr.. Hankin said he had not.
MIR. Weston said he had made
some inquiries. but he did not
accede to Mr.. Hankin's demand
to state what he had learned.
He said he was not free to do so.
Mr.. Hankin asserted. THE
Star chamber proceedings are
ended; We are now in public
hearing" He also accused the
commission of setting require
Iments for applicants which were
shocking"
He answered "yes" to q ques-
ton whether all estimates of
the CO operatives operations
were not based on a co-opera-
tiye's tax advantages.
Leasing for Cars
Mr.. Harrison took up the ques-
tioning, apparently trying to-
establish whether corporations-I
the two oil companies-could be
members Of a cooperative. Mr..
Hankin said later either al
corporation or an individual
could be a member.
Part of the co-operative's plan
Is to run streetcars initially. but
only by leasing the cars on q
car-mile basis.
Mr.. Weston inquired whether
he knew fare boxes cost $500
each. which would come to $780,
600 to equip 1000 buses. Mr..
Hankin replied that in the A.
nancial setup Of his organization
81 million had been allotted forI
'incidentals." which would take
care Of that.
Whitney w. Irons Of the Prince
Georges Chamber of Commerce