Evening star., 1955-07-20
Text Of Broodwoter Reply
To Spencer on Seizure

J. A. B. BroadpdteT, president
of the Capital Transit Co.:
I have read your letter Of July
10, 1885, addressed to Senator
Matthew NJ. Nicely. with which
you inclose Q draft Of a proposed
bill which provides for the cam
collation. Of the franchise of
Capital Transit Co. and its seiz-
ure by the District Of Columbia.
From your letter 1t would appear
that you were attempting to por-
tray the facts to Congress and to
the public. / was, therefore, sur
prised and shocked at the bias
and distorted picture portrayed
by your letter.
In your letter you state:
after thorough consideration
Of all relevant circumstances, the
Commissioners have reached the
conclusion that the long term at
titude and actions of the Capital
Transit Co. management cul-
minating in the emergency
created by the stoppage of the
transit service calls for the ex-
ercise Of powers they do not now
possess"
This statement would infer
hat the Capital Transit Co. had
taken some Affirmative action tc
ring about the strike. The fact
is, as you. your fellow Commits
sioners, and your staff, well know
that the union, not the company
is on strike because of the COM
pany's refusal to meet the ex-
orbitant demands of the union
which are many times the entire
income of the company.
Union Rejected Proposal
In writing your letter attempt
ing to set forth the facts, why
did you not tell the Congress
and the public that one of your
fellow Commissioners in you
presence, and in the presence
Of the company representatives
stated that he felt that a fan
settlement of this controversy
should be arrived at by an in
crease to the union IN the neigh
borhood OF 8h cents per hour
When such a proposal was sug-
|gested to the union it was, as
you know. summarily rejected.
1t also seems strange that you
did not advise the Congress and
the public that you had been
unable to get any commitment
from the union as to what il
would settle for. It had indicated
to you that 1t would give some
consideration to changes in its
contract which would impose ad-
|ditional costs on the comnany
of approximately So million an
|nually, or approximately 81 mil
lion more than the entire in
crease which he company esti-
mated 1t would obtain from the
new fares which 1t now seeks
of 20 cents cash and i9-cent
tokens.
why, Mr.. Commissioner, in
stead Of reciting these facts Ia
your letter, did you attempt I'd
impose the responsibility Of this
unfortunate strike entirely on
the company?
In your letter you also quote
at length from the opinion oi
the Interstate Commerce COM
mission Trial Examiner. ir
which he recommended against
the acquisition Of the contro
lof the Capital Transit Co. By
Mr.. Wolfson and his associates
In fairness, Mr.. Commissioner
do you not feel that you SHOULD
also have quoted the facts founc
by the Interstate Commerc,
Commission upon which it basee
Its conclusion that the PROPOSED
purchase was consistent will
the public interest" and over
ruled the conclusion reached b.
its examiner, Mr.. Baker.
Cites Weinstein Testimony.
In your letter you also quot
from the testimony Of Mr.. Vein
stein to the effect that the nev
purchasers did not intend II
ACTIVELY participate in the activi
ties Of the Capital Transit Co
and that their only interest wa
to protect their investment. Thi
statement obviously is intended
Ito create the impression tina
Mr.. Weinstein was not tellinl
'lthe truth and that at all time
the new purchasers did propos,
to take an active part in tn,
management Of the Capita
Transit Co.
/ II you desire to present tn
!, true facts, Mr.. Commissioners
!, why did you not state in you
letter that had testified unde
oath that when the Wolfson in
,lterests acquired control OF tn
1 Capital Transit Co. they had n,
intention Of stepping into man
agement. After they had &C
Iquired control they learned 70
the first time that the thre
senior officers Of the company
Mr. E. d. Merrill, president, MI
~. e. Heberle, vice president an,
controller, and Mr.. William 3
Bennett, vice president and sec
lretary, were nearing retiremen
and had determined to exercis'
their retirement rights despit'
the fact that the new owner
asked them to remain and con
tinue in active management o
the company.
Don't you think, Mr.. Commits
sioner, that according to the or
binary standards of fair pla.
these facts should have beer
stated in your letter rather thar
attempting to create a false ant
misleading impression Of Mr.
lWeinstein's testimony?
| Tn volr letter vol uoint MI