Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-08-10

Does the Capital Transit Co
bill now awaiting action by
President Eisenhower provide
for the immediate end OF the
company's charter? Or does il
provide for ending the charter
when the franchise is wiped out
at the end of a year?
Bound up in this problem Is
the possibility of a receivership
being asked for the company.
The question was put to men,
bers of the House-Senate Con-
ference Committee, which finally
reached agreement on the bill in
the final hours of the 84ht Con-
gresS.
Senator Medley, Democrat OF
West Virginia and chairman OF
the Senate District Committee
said it was his recollection that
the charter and the franchise,
which plainly has year to run
were to end at the same time
under the bills provisions. He
was reached at Fairmont, w. Va
End Of a Year
Representatives Broyhill OF
Virginia and Hyde of Maryland
Republicans, and Representa-
tive Jones, Democrat of North
Carolina, also said the bill pro-
vided for ending the corpora
tons charter at the end Of a
year.
Representative Smith, Demo-
crat of Virginia. said the idea
behind the bill was to cancel
both charter and franchise, but
he did not recall whether that
was to be done simultaneously
He explained he had been tied
up with the Rules Committee
of which he is chairman, and
reached the conference on the
transit bill late.
Senator Mcnamara, Democrat
of Michigan, speaking from his
Office in Detroit, said of the
charter cancellation:
I'VE left that to the discre-
ton of the Commissioners. Ul-
timately it would have to be
interpreted by the courts"
Senator Morse, Democrat of
Oregon. in contrast to other
members of the conference COM
mittee. said, after the bill was
passed, it would kill the charter
Immediately.
Representative O'Hara, Re-
publican of Minnesota. reached
at Glencoe. Minnesota, said when
the conferees were discussing
cancellation, no issue was made
of the charter.
My own thought" he said,
"was that both the charter and
the franchise would be cancelled
in year. I don't see how you
could cancel the franchise at one
time and the charter at another"
District officials believe the
charter and the franchise would
expire at the same time, which
would be a year after the bill
became law.
There is diversity of recollec-
tons among the conference COM
mittee members on the question
OF a receivership.
Possibility Suggested
Receivership is discussed as a
possible way Of meeting a situa-
ton in which resumption Of
service would be blocked either
by failure of management to
agree with the Commissioners
on a contract to provide service,
or the union to agree on a new
labor contract.
The recollectionS of conference
participants on the subject of
receivership varies from one that
the matter of receivership was
voted on-and voted down-to
other recollections that the sub
ject was merely mentioned.
On this point, Murray w.
Weight. assistant counsel of the
Senate District Committee. who
was present at the conference.
said:
There was a discussion of it
(receivership). The feeling was
that the bill was broad enough
in the powers given the Com
missioners to permit them to
seek receivership if they
thought that the proper APP
proach".
A receivership expert, member
of the District Bar Association
was of the same opinion. He
pointed to this passage in the
bill:
That it is hereby declared
that the business of mass trans
portation of persons for hire in
the District of Columbia is
clothed with a public interest
and is essential to the proper
functioning of the Government
Of the United States and the
Government of the District of
Columbia. The continuous, I'M
interrupted and proper function
ing Of such business in the Dis