Evening star., 1955-07-12

pointed by the board met with
the P. q. C. as long ago as last
March. Then. as previously. the
commission stated that since an
elimination of the gross earn
|ings taxes Of the company was
possible. and since the so-called
school fare bill would probably
receive favorable treatment by
Congress, 1t was not q propi-
tious time to ask for q fare in
crease.
As you know. the District
Commissioners turned down any
suggestion of an elimination of
the gross earnings taxes.
The school fare bill so far
has not been adopted by the
Congress.
Concerned by Strike
Meanwhile. as June, and with
lit the expiration of our labor
contract, grew more imminent,
we became more and more con-
Icerned about the possibility of
a strike. Wanting to leave
nothing undone that would OBJ
viate a strike. the Board of Di-
rcctors in May again sent a
special committee to the P. U. C..
to plead for financial relief. But
the commission remained ada
mant.
We acted next on June 6, when
we returned to the P. U. c. with
a petition for an immediate fare
increase, on which public hear
ings might be held later. 1t was
our hope that the filing of the
petition Of itself might induce
the union to postpone the strike
until a ruling was had. It was
our thought that If the hearings
later determined that an in
crease in the rate structure was
not merited, there could be a.
subsequent downward adjust
ment. Counsel advised me this
was both reasonable and pos
sible. But the commission re-
fused to act.
These were the efforts we
made in our attempt to antici-
pate requests of our employees.
Under present circumstances, we
can do nothing toward promis-
ing increased wages and other
benefits. such as better pensions
and additional health and well
fare. payments.
Without additional revenues,
we cannot begin to meet union
requirements. We cannot give
our employees more money for
the simple reason that we don't
have it.
Meets Two Representatives
At their invitation, I met yes
|terday with Representatives
John L. Mcmillan and Joel T
Broyhill, in an endeavor to re-
store full transportation to the
District of Columbia at the earli-
est possible moment.
These were their suggestions:
l. During temporary period
OF 100 days. BY emergency ac-
ton OF p. U. c., or by an act of
Congress, temporary emergency
fare rates equivalent to those
sought in the application filed
with the p. U. c. on June 6, and
pending since that time, should
be established.
2. Under a temporary arrange
ment, all striking employees i'm
mediately would return to work
at an increased wage rate of 10
cents per hour, effective stimuli
taneously with the new increased
emergency fares. Additional
negotiations may be held during
tllS PERIOD. sest. ..s.s3 .s.
Our board Of directors met
this morning and accepted these
suggestions. If they are fol-
lowed. We will be able better to
Judge what revenues we can
hope to receive, and on this
knowledge should be able to
negotiate a new and satisfactory
contract with the union. Such
an actual experience record also
will enable the P. U. c. to enter
an equitable final order on per-
rates.
Transit's only income is from
the fare box. Both stockholders
and employees have no other
source of income. A realistic
appreciation of this simple fact
by both the p. U. C. and this