Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-05-24
District Heads
Called 10 Farley
On Transit Plan
Senute Conferees
Seek Opinions on
Compromise Move
BY HECTOR MCLEAN

by HECIOk MCLEAN
Senate conferees on Washing
tons transit crisis today sum-
moned the District and Public
Utilities Commissioners to give
their opinion on a proposed COM
promise plan.
The proposal revolves around
a suggestion made last week BY
Daniel w. Bell, president of the
American Security and Trust Co
Under it, the Capital Transit Co
itself would buy out the shares
of its controlling stakeholder
Louis E. Wolfson, Florida multi
millionaire.
1t is on this feature that the
conferees want the city heads
opinion. Senator Mcnamara
Democrat of Michigan, chairman
of the Senate District Subcom-
mittee which handled transit
legislation, said after the con-
ferees met for more than half an
hour this morning.
Standby Authority Asked
Another phase of the proposed
compromise would call for enact
ment on a standby basis of legiS-
Ilation to create a public transit
authority. This would be cou-
pied with renewal of the dying
franchise of etc and would 90
into effect only if the company
failed to buy out Mr.. Wolfson.
4 The conferees this morning
received legal language setting
forth the conditions under
which the renewed franchise
would be void and the public
authority would go into effect.
This was supplied by John w.
IPehle and Ansel Luxford, law
yers who have been assisting Mr.
Bell in setting up his proposed
deal.
The conferees would not dis
close the language of what Mr..
Luxford called a "triggering''
clause, designed to marry" the
widely divergent bills approved
by the House and Senate.
Technical in Nature
| The lawyers said they hao
supplied the language at the re-
quest of the Senate District
Committee and that the new
language was technical in nature
and did not affect the substance
lof either the House OF the Sen
ate bill.
/ The District Commissioners
refused to submit Mr.. Bells plan
to the Senate District Commit
+ tee earlier, Robert E. McLaugh-
lin. president of the Board OF
Commissioners. explained that
the proposal had been outlined
to the city heads only as an
idea" and pointed out that they
had been offered many other
ideas which had failed to de-
Ivelop. Also. he said, the Com
missioners are committed to sup
port the public authority plan
adopted with notifications by
the Senate.
Bell Explains Plan
/ Mr.. Bell yesterday explained
his plan to all five members of
the team set up by the Senate
to settle differences between bills
passed by the Senate and by the
House.
The Senate bill would create
a publicly owned Washington
Metropolitan Transit Authority
Ito take over mass transportation
here when Capital Transit's
franchise dies by act of Congress
next August IA. 1t would oper-
ate on an interim basis for three
years under direction Of the Dis
trict Commissioners who would
attempt to sell the system to a
new private owner.
! The House bill, drafted as
result of negotiation with the
Capital Transit management,
would restore the franchise with
tax and other concessions
The first conference between
lawmakers from the House and
Senate has been scheduled tenta-
lively for 2:30 pm. Monday.
Possible compromise Of the
two diametrically opposed bills
was Endorsed by Representative
Harris. Democrat Of Arkansas,
chairman of the Transportation
Subcommittee of the House Com
Imerce Committee which drafted
1.-THE etc restoration bill.
He said he had a great deal
of confidence" in Mr.. Bell and
hoped his plan to have etc buy
out Mr. Wolfson and retire his
stock would succeed. Mr.. Harris
said he was open minded OIL
some alternatives If it (the Bell
plan) shouldn't work out"
Meet Major Tests
He said the Bell proposal would
meet two major tests. One. Re
said. is that everybody says they
want private ownership" of the
transit system and the other is
that lit appears that practically
everyone does not want Mr.
Wolfson to operate a transit
system fol Washington"
Mr.. Harris said. IF that's a
fact. the committee has brought
forth a proposal by reputable.
private citizens OF the District
t.slaA sssrsaN - A..