Evening star., 1955-08-20

1
$l80, 900 and lesser amounts fol
other benefits.
While the settlement cost fig.
ures are being used by the Com.
lmissioners In their examination
lof new fare rate figures, othel
company expenses not covered
by the settlement also are in
volved.
The company. for example
anticipates a 10 to 30 per cen
drop in passenger volume i'm
Imediately after the strike, low
ering the revenue level. It alss
estimated it spent about $780,
600 on salaries to union EN-
Iployes kept on the payroll dur
ling part Of the strike.
J. w. Falk. Public Utilities
Commission chief accountant
burned the midnight oil in al
analysis Of the estimated addi'
Itional costs last night, and i
expected to give the city head
some figures today.
One big factor in the Capita
Transit Co.'s decision about {
straight contract with the unior
or an additional pact with thu
city apparently is whether tn,
company wants to seek q prof
return during the next years.
operation.
Under a straight contract with
the union, officials explained
1.-THE Public Utilities Commission
would be obligated by law Il
consider a fair return to th'
company in setting new fail
rates.
Authorizes Separate Pact
The new law signed by Presi'
dent Eisenhower this week
wiping out the company fran
chise after a year, authorized
the city to enter a separate con.
tract with the firm, calling fol
taxpayers to pick up any oper'
ating deficit resulting from
higher labor costs.
Whether the company ais
would seek a profit under Sucl
a city pact was uncertain. OF
fcials pointed out. however. tina
the law does not prohibit sucl
profit and fare raises to cove
lit.
The Public Utilities Commits
sion will reopen hearings Mon
day on a pending Transit fare
boost request. Submitted before
the strike began, the request call
flor a Scent increase In tokens
Ito 10 cents. no change in the
20-cent fare and elimination o!
the weekly permit. This wa!
estimated to bring in an addi'
Itional $2.l million a year.
In addition. however. the Pub.
Ilic Utilities Commission is com.
mitted to make a fast decision
on "interim" fare increases which
simply would cover additiona
labor costs.
Such interim" fares could
apply until action is completed
Ion the long -range fare, increast
application, and presumably
could be ordered into effect re.
gardless of whether the compan.
inferred a pact with the city ol
decided on an ordinary labol
contract with the union.
Early yesterday, hopes wer'
high that problems could bl
wiped away in time to permit 9
resumption of streetcars and bu'
service by Monday. With activit!
under way on every from
throughout the week end, al
early end to the strike is still
possible. but the Commissioner
were making no predictions aftel
yesterdays midnight session.
Capital Transit officials. 1t wa
understood. would rather worl
out a contract with the District
guaranteeing no deficit from
higher labor costs, If possible
But there are innumerable de.
tails to be worked out.
Mr.. Giddings said efforts woulc
be made at the District Building
meeting today to put provisions
|of such a tentative contract or
paper. But he emphasized that
this does not mean "the company
has decided to follow that
course"
One problem at last nights
meeting, he said, was that "tht
new act means one thing to one
lawyer and one thing to another
and there were five lawyers sit.
ting in on the conference"
Almost half of the nine-pagt
labor settlement proposal voted
on by the union last night, mean
while, dealt with the controver.
sial pension fund.
Money-wise, it provided thai
the company increase its MONTH!
contribution IS to 1920 per en-