Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-08-03
7 RANSIT
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TRANSIT
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missioners were Corporation
Counsel Vernon e. West, Lloyd
B. Harrison, assistant In charge
Of Public Utilities Commission
matters: Administrator Schuyler
Lowe and j. William Falk, utili-
ties commission executive &C.
countant.
Whether a strike settlement
could be worked out remained tc
be seen. Essentially, the bill
would let the Commissioners sigr
q contract with anybody to pro-
vide transit service during the
coming year-including Capita
Transit.
If the contract were with Cap
ital Transit, the Commissioner:
could order increases in wages
and benefits for employees, which
might bring an end to the strike
Terms of Bill
1t was agreed upon as COM
promise of House and Senate
bills at a late afternoon con-
ference of House and Senate
members and was approved by
both houses just before adjourn
ment. Generally, the bill would
!. Cancel the franchise OF
Capital Transit, effective one
year after the act is signed by
the President.
2. Cancel the company's cor
porate charter. This move. moi
previously discussed publicly
raised several complex legal pos
sibiltieS and found lawyers d.
vided as to its effective date.
3. Authorize the Commission
ers to contract for public trans
portation, with terms and rates
to be recommended by the Dis.
trict Public Utilities Commits.
sion, subject to approval by the
District Commissioners.
Permits Higher Wages
4. Permit increases in wage.
and benefits to employees, if tn,
contract was signed with Capita
Transit. Similar raises could b,
given to salaried Capital Transi
employes-other than company
oficers-subject to approval b!
the Commissioners.
S. Continue the pay of Capita
Transit officers at the level O.
last July l, when the 34-day -olt
strike began. t.-
6. Require the District Gov
eminent to pay for Capita
Transit deficits-without an!
allowance for profit. The defici
would be limited to increased
labor costs approved by the Com
missioners for the contrac
period" Furthermore, the def,
cts would be Offset by any in
creases in income from higher
fares.
z. Let the Commissioner
operate service in Maryland
subject to approval by the Mary
land Public Service Commission
8. Let the Commissioner
order Capital Transit to tear W
its streetcar tracks at the end o.
the year and repair the streets
at its own expense. This ha'
been estimated to cost IS million
No d. c. Seizure
The bill contained no provi-
sion to let the Commissioners
seize the company and oper-
ate 1t.
Essentially, the final measure
was the bill passed last week by
the Senate-minus the seizure
provision, which had raised
strong opposition in the House
1t incorporated provisions of the
House bill spelling out items tc
be covered by any contract with
Capital Transit.
A new addition, though-not
contained in either version Of
the, bill as passed by the House
or Eenate-was cancellation OF
Capital Transit's corporate
charter.
Senator Morse, Democrat, o.
Oregon, said it is up to the
Commissioners whether the!
want to throw the company int
receivership, under what ha
been described as court seizure,
rather than COMMISSIONS
seizure"
Senator Morse said the effec
of charter cancellation is tina
the company's stock isn't worth
O dollar"
I'm my judgment" he added
1--WE put Mr.. Wolfson Uouis Z
Wolfson, the Florida multi mil
lionaire, who is controlling stock
holder in Capital Transit) out o
the District of Columbia wher'
he should have been long ago"
On the question Of stock value
he asked, How would you lk'
to buy stock in a company tina
has neither a franchise nor
charter"
Mr.. Wolfson, whose Capita
Transit stock closed yesterda.
on the American Stock Exchans,
at $3.50 a share, as compared h
n hook vAlilp of 800. has estj