Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-01-17

Co. franchise dies.
The funds would be used to
public transit system In business
This appeared to be the thin
worked late last night getting
the transit plan into shape for
submission to Congress. The
Commissioners, the Public IT'LL
tiles Commission and their adj
visers labored Saturday and all
day yesterday until nearly II
pm. on the task.
Hope to Finish Today
The drafters hoped to finish
their work today. There was a
possibility that after clearance
with the Bureau Of the Budget
the bill would be sent to Con-
gress tomorrow.
Commissioners Robert E.. Nc
Laughlin and Brig. Gen. Thomas
A. Lane resumed sessions in the
utilities commission offices. They
met with the delegation from
the investment firm of Blyth &
Co.. Inc. led by Walter C. Cleave,
Chicago vice president. Commits
sioner Samuel Spencer was en-
gagged with revenue hearings at
the Capitol.
Explaining plans to ask for
authority to borrow from the
Treasury to launch the pro-
posed transit agency, MIR. Nc
Laughlin said:
Bonding houses don't look
with favor on floating bonds
while important litigation Is still
In prospect and without an
operational history" for the
transit system they are asked to
underwrite.
Congress Awaits Legislation
He said the initial Treasury
loan would ultimately be paid
OF from the proceeds from the
revenue bonds to be sold by the
transit authority. According to
earlier statements, the Commits
sioners were considering a $50
million bond issue. but Mr.. Nc
Laughlin said today there had
been no final decision.
On Capitol Hill the Commits
sioners' proposal for q loan came
as = surprise, but Congressional
District leaders preferred to wait
for the new transit bill itself be-
fore committing themselves.
/ Senator Mcnamara. Democrat
Of Michigan. said this was only
one phase Of the transit problem
He wanted to look into the whole
situation before making any de-
cision.
I'VE will have to 90 over the
whole problem with the District
Commissioners" he said.
| I'VE want to know more about
what they have done and why
they have not been able to come
Iup with an operator to run the
transit system here when the
Capital Transit Co. franchise ex-
Ipires next August"
Loan might Be Answer"
"We've got to have transpor-
tation," he said, land If there
is no other way then a Treasury
loan that might have to be the
answer, but I would need to be
convinced" he said.
Senator Mcnamara is chair
man of the District Subcommit-
tee which handled the transit
bill revoking the etc franchise.
Chairman Mcmillan Of the
House District Committee, who
refused to approve the bill kill
ing the franchise, said he would
wait until he could study the
Commissioners proposed bill be-
fore commenting on the Com
missioners' proposed $40 million
loan.
SCOT Tiger by Tailp
Referring to the Commission
ers' difficulties in getting the
transit mess cleared up. Mr.. Nc
MILAN said they've got q tiger
by the tail and can't let CO."
Representative Allen, Repub-
lican of California. said the lat
est proposal Of the city heads
doesn't surprise me-"
A member Of the House Dis
trict Fiscal Subcommittee, the
Californian said he had pre-
dicted long ago that transporta-
"