Evening star., 1955-07-20

OCV8 A8(tAA CAAASAAt ANONC~A
Why. Mr.. Commissioner. did
you not also advise the Congress
that during this same period the
company had used its cash and
marketable securities to retire
go million Of debt, and to pur-
chase approximately $3.75 mil
lion of new buses?
It is well known to you that
the company intended to pur-
chase for cash additional king
size buses at an additional cost
Iof approximately 81 million but
was prevented from doing so
because the Board Of Commits
Isioners of which you were a
member refused to authorize
their use through the streets of
Georgetown.
In order to present the real
picture, Mr.. Commissioner, dc
you not think that these facts
should also have been stated in
your letter?
You recited in your letter the
dividends paid by the company
from 1850 to date.
Do you not feel, Mr.. Commits.
sioner, that in setting forth the
dividends paid you should have
also stated that these dividends
except for the year 1852 when 9
special dividend was declared
were not in excess of a fair re.
turn as fixed by the Public Util-
|ities Commission for the use Of
its property devoted to public
service?
With respect to the special div.
idend declared in 1852, do you
not feel that in fairness yor
should have told the Congress:
and the public that the money tt
pay this dividend was earned BY
Inon-transit properties not in.
Icluded in the company's rate
base, and not one penny was con.
tributed by the riding public?
2 Per Cent Return
Do you not also feel that you
should have stated in your letter
that after payment of this special
dividend the total return to the
stockholders from the time the
company was organized in 1888
was less than 2 per cent?
You also state in your lettel
that during the years from 1874!
to 1854 the company was granted
four fare increases by the Public
Utilities Commission. Is thert
anything sinister or wrong II
this when the Public Utilitie.
Commission by its. own admis.
sion has stated that this com.
pany has never earned a fail
return as required by law since
the end of the Second Worlt
War?
Would it not also have pre-.
sented q more accurate picture
Mr.. Commissioner. if you hac
stated in your letter that while
lit was true that four fare in.
EGreases had been granted be.
tween 1949 and 1854, twas alse
true that six wage increases hae
been granted between July l
l949 and July l, 1866, which
increased the wage rate from
I$1.45 an hour to $l.90 an houl
and that in addition labor hac
been granted many very costly
and expensive fringe benefit.
which brought the pay hour cost
to the company to $3.50 per hour
Before placing the entire blame
| for this strike on the company
do you not think that in fair
ness you should have advised
Congress and the public as tc
wage rates paid in this area by
other transit companies? These
rates are:
A. B. g. w. Transit, $1.s0 pei
hour.
| w. Va. g. Md. Transit, $1.s2
per hour.
/ w. M. & A.-Owned by en-
ployes, $1.60 per hour.
/ Silver Spring Transit Co.. $T.4(
lper hour.
Baltimore, Maryland, $1.90 pei
hour.
/ Richmond. Virginia, $1.5s pei
hour.
4 In your letter you quote Ger.
tain portions Of the so-callet
Payne report which are critica
.Iof the dividend policy of tht
company. One quotation is:
a. as q course of actor
wholly inconsiderate of tn.
public interest. wholly inconsist.
ent with the philosophy of fan
land reasonable return to tht
owners of a regulated utility
and wholly inconsistent with thu
stated intentions of representa-.
Itives Of the Wolfson group be-
fore the ICC."
PUG Statement
How can it be fairly ,statet
'lthat the attitude is wholly in
consistent with the philosoph.
Iof a fair and reasonable return
Ito the owners Of the propert,
when the Public Utilities Com.
mission has publicly stated that
this company has neverN earnec
la fair return since the end o1
the war?
] Do you not think, Mr.. Com.
missioner, in presenting this pic.
Iture to Congress and to the
public you should have STATED
THAT one of your fellow Com.
missioners has stated to 6
member Of Congress that the
company was rendering gooc
service and was efficiently man.
laged? Do you not think that yoy
should also have told Congress