Evening star., 1955-10-30
District Chiefs
Split on Transit
Tax. Relief Plan
Lone. Mclaughlin
Differ on Solution
| Of New Franchise
By HECTOR MCLEAN

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The District Commissioners
are split on the question Of
whether It win be necessary to
grant tax relief and other special
concessions to would-be transit
operators TO persuade them TO
take over the dying Capital
Transit franchise. It was learned
yesterday.
Conceding that the District
| Commissioners and the Public
Utilities Commission might
Iagrees to recommend such con-
Icessions to Congress In negotiats
ing q deal with q new transit
operator, Brig. Gen. Thomas A..
Lane refused to comment on
whether 1t would be necessary.
The Engineer Commissioners.
who also Is Q member Of the
utilities commission, said, 1T
has not been proved to me vet"
that 4 subsidy lis necessary or
desirable"
Disagrees with McLaughlin
This contrasted sharply with
1.-THE position Of District Com
missioner Robert e. McLaugh-
lin. former chairman of the
utilities commission.
Speaking before the National
Association Of Railroad and
Utilities Commissioners at Ash
leyille, N. c., last week. he called
ifor tax relief and help on traffic
lproblems rs necessary to per-
lsuade private capital to invest
lin transit.
/ Gen. Lane declared yesterday,
however, that Washington should
mot have to make such conces-
Isions to attract q new company.
Even without tax relief" he
lsaid, "it win be possible 0or Q
lnew bus company TO make Q
reasonable profit IN Washing
lton."
OF the Capital Transit franz
Ichise. cancelled next August Il
lby act OF Congress during the
recent 52-day strike. Gen. Lane
Isaid, Anybody who takes It over
lWill have to take it without con-
lcessions which can only be
granted by Congress. They must
ibe ready to do business now"
He admitted the city might
make 3 deal to recommend con-
lcesssions, but refused to say
whether 1t would be necessary.
Six Franchise Applicants
4 The utilities commission ID nov
attempting to weed out i've oi
lsix applicants for the franchise,
lit has promised TO give the VIM
Iner . permit" TO operate In the
District starting next August Is
land TO join the District Com-
lmissioners in recommending is
suance Of q Congressional fran
lchise. $50 ~
So far. Gen. Lane said. the
commission has not yet been able
Ito get all the applicants to iden-
''ltify their financial supporters.
I'VE WIN do 50 shortly, though. Z
iIhe said. irEisting the utilities
.lcommission must know the iden-
.itity Of the NGIlId- be transit op.
Ierators before Srantine 3 permit
4 Selection u ID operating COM
Ipany. he declared. win depend
lon the reputation and integrity
lof its hackers.
It has been reported that
hackers Of some Of the COM
Ipanies are determined 10 let
themselves be identified only IL
land when D permit Is granted.
They reportedly are 90 unwill-
ling to be identified with IN un-
successful application that they
would withdraw rather than be
named prior to the granting Of
,la permit, even II Identification
were necessary to get the permit
lin the first place.
Urges Tax Concessions
], While Mr.. Laughlin Is rec
IIommending tax concessions for
'Ia new transit company to his
fellow Commissioners, 1t squares
with his position while he was
.Istiil chairman Of the utilities
l|commission. Then he voted to
Ilrelieve Capital Transit Of the
i $500. 900 yearly gross receipts
'Itax. So did Gen. Lane, sitting
las q member Of the utilities COM
omission.
i Later, however, sitting as q
member Of the Board Of COM
tmissioners, the general voted
.lagainst the plan when 1t was
,Iunsucessfully presented TO that
body. y
i This, he explaineda was be-
cause the city could not afford
1.-THE loss Of tax iaoney--less than
,lhalf Of which would 90 to Capt.
.ltil Transit. He pointed out that
.l52 per cent would 90 to the Fed
,Ieral government In corporation
Income taxes.
i Again yesterday, Gen. LANE
pointed out that local taxes ar
10 small element Of the total tas
load on transit companies thai
Imost Of 1t Is Federal.
Question Of . Subsidy
And. he indicated, any decision
lon tax relief for d new company
would have to be made ''in the
light OF specific circumstances,
Including q calculation Of thl
'lrate Of profit the new firrn hopes
Ito make.
| He conceded the cost Of install.
ling special rapid transit rights
Iof-way would be so heavy as Il
'Irequire public subsidy. However
'lhe insisted he believes buses
Operating on downtown city
'Istreets can do so without subsidy
/ All in all. he said. the overall
Question OF subsidy would depend
Jon q particular case and woult