Evening star., 1955-07-18
Text of Commissioners
Transit Seizure Message

This Is the teri of the letter
sent by the Commissioners to-
day NTH their request for
legislation to seize the transit
company. It tDds addressed to
Chairman Nicely OF the Sen
ate District Committee:
My dear Senator Nicely:
The Commissioners of the Dis
trict of Columbia have the homo
to submit to you herewith
draft of a proposed bill IT
amend joint resolution entities
'joiit resolution TO authorizI
the merger Of street railwa!
corporations operating In tn
District of Columbia, and foi
other purposes, approved Jan
uary IA, 1888, and for other pur'
poses"
Shortly after midnight of Jun,
80, 1855, there was a strike b.
the employees Of Capital Transi
Co. and since that time the pub.
lie transportation service vehicles
Of the said company have no
been operated. The cessation O.
service by Capital Transit Co
has had serious impact upon ths
public interest and all business
in the District of Columbia. TIL,
functions of the Governments o.
the United States and the Dis
trict of Columbia, and of thu
agencies Of the said Govern,
ments, have been impaired. Tht
Commissioners have used every
means within their command X
bring about the resumption oi
transit service. Up to the pres.
ent time their efforts have beer
without success.
Reluctant Conclusion
After thorough consideration
of all relevant circumstances, the
Commissioners have reached the
conclusion that the long tern
attitude and actions of the Cap.
itai Transit Co. management cul.
minating in the emergency Gre
ated by the stoppage of the tran.
sit service calls for the exercise
of powers they do not now pos.
sess. This conclusion has beer
reached with the greatest reluct.
ance, but in the belief that it /.
the best means of restoring pub.
lie transportation service in thu
District Of Columbia. AS a last
resort the Commissioners recon-.
mend that legislation be enacted
IL to terminate the franchise o
the Capital Transit Co. and 81
to grant the Commissioner.
power to take possession of ane
operate the properties of Capita
Transit Co. as may be necessary
during the one year period unit
the termination of the franchise
legally becomes effective.
The reasons which have LEI
the Commissioners to recon.
mend the termination Of thu
franchise Of the company relat,
to certain events which hav,
taken place in the history Of thu
Capital Transit Co. going back tx
1949 when the present controll'
ing interests in the company ac'
quired control.
In 1949 Louis E. Wolfson ant
persons associated with hin
sought to purchase a controlling
interest In the stock Of the Capi
tai Transit Co. Under the law i
was necessary for the Interstate
Commerce Commission to ap'
prove this purchase. It is inter
esting to note that after a full
hearing Mr.. Vernon Baker, th'
examiner who heard this matter
recommended disapproval of tn.
purchase.
Statement in Report
The report Of Division 4 o.
the Interstate Commerce Com
mission, dated September 2. 1949
contains the following state
ment:
1.-THE examiner recommends
denial Of the application be
cause. in his opinion, applicant
had failed to establish by com
petent witnesses that the pro
posed transaction would be con
sistent with the public interest
noting in particular that onl!
one of the applicants. Weinstein
was present at the hearing as
witness; that the record wa
wholly lacking in evidence which
would show, and it was no
claimed, that the transaction
would, benefit in any way tn
carriers or the public which the.
serve; that, on the other hand
applicants admittedly have hat
no experience in transportation
live in places far removed from
the territory in which the car
riers concerned operate, an,
presumably have no knowledg,
Of or interest in the problem
of the public in that territory
and that acquisition of contro
of the carriers by persons so un
qualified by knowledge and ex
perience. and whose sole purpos
is to obtain a reasonable return
on their investments, would pre-
sent definite hazards to the con
tinued performance by transi
and bus lines of adequat
transportation service to tn
public"
Testimony by Weinstein
MIR. Doran S. Weinstein, VIII
became a vice president of Capt
tai Transit Co. after tn
Wolfsons acquired control, tes
titled as follows before Examine
Baker:
Examiner: AS I gather fror
the testimony, your primar
purpose in buying this stock
not to run a public utility, bu
as a means Of earning incom
from your money?
Witness: That is right, sir.
Examiner: Do you propos
IN artively participate in tl1