Evening star., 1955-06-21
Hearing Opens
On CTCP|ea
For Fare Boost
Transit Application
Has Background
Of Strike Threat

Formal public hearings on the
Capital Transit Co.'s latest bid
for a fare increase opened be-
fore the District Public Util-
titles Commission today.
It was set against the dark
background of a potential strike
for higher wages by transit en-
ployes and the threat of a crisis
which could lead to public own
ership of the company.
Opening the session, Commis-
sion Chairman George E. C..
Hayes, newly appointed by Pres
ident Eisenhower, turned down
a request by attorney George
Spiegel, 723 Northampton drive.
Silver Spring, to intervene for
mally on behalf of the Transit
Improvement Association of the
Greater Metropolitan Area.
The ruling would block Mr..
Spiegel from cross examining
witnesses or from appealing the
Commissions decision to the
courts.
Decision Called Arbitrary
Mr.. Spiegel objected vigorous
ly, charging that the decision
against him was unprecedented"
and "capricious and arbitrary"
Chairman Hayes ruled that
1--WE find nothing justifying in
tervention in its formal sense"
but offered Mr.. Spiegel and any
other interested persons a chance
to participate by testifying in the
case.
In the present action, Capital
Transit has asked to wipe out
the weekly permit and for per-
mission to increase the price OF
its tokens by three cents each.
from Is cents to 10 cents or five
for 95. cents.
The company's case opened
with a statement by Attorney F.
Gloyd Await. He answered
charges that six increases
granted the company since 1916
are reaching "the point OF ci-
minishing returns"
He contended that "it is in-I
deed strange that SO much is
made of an increase in a transitI
fare to meet the changing con-
ditions when wages and prices
generally have been on a steady
increase and continue to be-"
Mr.. Await declared, "No oneI
of the six increases produced
the amount of revenue predicted
by the commission and the COM
mission did not in the last fiveI
of the cases grant the rates re-
quested by the company"
Hits Weekly Permit
He contended that the COM
missions recent substitution of
the weekly permit for a weekly
pass which the company also
had sought to abandon had also
figured. in the failure to secure
the income needed by the COM
pany."
Mr.. Await pointed out that
throughout the country mass
transit riders are declining about
7 per cent year. This. he said,
is because of increased riding inI
automobiles, a five-day week. the
great use of television and other
factors in addition to increasing
fares.
James H. Flanagan. CTC vice
president and controller, ap-E
peared as the company's first
witness. The company's rate Of
return on its investments and
property serving District riders
was 3.3 per cent for the IL
months which ended last April
80. he said.
This compares with a return
ranging between SO and ST. per
cent authorized by the commits
sion as fair and reasonable.
AS the commission opened its
hearings, the deadline Of June 80
neared on the life of the COM
pany's labor contract with its
employees, who will meet Friday
to consider a strike authoriza-
ton to press their demands for
wage increases and improve
ments in working conditions. The
company was not expected to
offer any such improvements
without definite assurance Of in
creased revenues.
Co. T~,io. So seham