Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-06-15


National City controlled the Bal
timore Transit Co.-then under
going a month-long strike of its
own-Mr. Spencer said National
City Lines would be the last
thing he would want to see in
Washington.
Among other major companies
owned by National City are the
transit system of Philadelphia,
ST. Louis and Los Angeles.
The company's headquarters are
in Chicago, Ill. 1t controls and
operates companies in some 80
cities and is reported to have
been money-maker in transit
when other companies we're
merely making ends meet.
Sale of etc to National City
is expected to solve one old con-
troversy between the city and the
LEGAL company. Like most top
officials Of the District, National
City is said to favor rapid con-
version of it's streetcar lines to-
an all-bus operation. 1t is UNI
derstood National City plans to
complete conversion to an all
bus system here within five years.
A etc engineering conSultant
had recommended a seven-year.
conversion program. The Com
miSsioners have been pressing for
a Speedup of this.
Dividends Set Record
National City has been an ex-
ception to the almost universal
picture of a declining transit
business. Dividend payments
have set records.
One competing transit official
was quoted by the Wall Street
journal last summer as giving
this analysis of the secret of
National City's success:
Superb maintenance of their
equipment. The latest tech
niques in operating efficiency.
But above all a real tough, hard
boiled wage negotiation policy.
They know what their costs are
and absolutely refuse to submit
wage questions to outside ar
hitrators, whose main concern
often is to prevent a strike and
get the city out of an unpleasant
situation"
National City repeatedly has
a standing offer to sell any of
its lines to any city that feels
it can run the line better.
sInherits Pay Raise Demand
Under terms of today's deal
National City will take over all
CTC liabilities. The liabilities
include CTC's labor contract,
Which expires with the etc fran
chise. Also. the pension fund,
controlled by etc and Division
689, Amalgamated Association of
Street, Electric Railway and Mo-
tor Coach Employees of America.
will continue unimpaired, any
change in the terms being SUBJ
ject to collective bargaining.
AS a result National City will
a new set of contract
demands from the union which
were submitted to etc Tuesday.
These included demand for
arbitration of new contracts and
proposed a 25-cent-an-hour in
crease for operators, along with
many other items.
The union has been particu-
larry vitrolic in its denunciation
of CTC's no-arbitration policy.
Negotiations for the settlement
which came today began Tues
day between representatives of
National City and Mr.. Broad
water, who handled all phases
for etc. They continued
throughout Wednesday and
Thursday and resumed at 9 am.
today.
Entirely New Management
The sale will bring a complete
change of management. In Ball
timore, during the February
strike which ended only after
temporary seizure of the COM
pany by the State of Maryland,
only two directors were not con-
nected with the company or the
National City Lines.
The report of an unprece-
dented Grand Inquest" by the
Maryland House of Delegates
into the Baltimore strike warned
that settlement of the current
strike will not solve the
transit problem in Baltimore.
The record in these proceedings
clearly indicates a chronic con-
dition which may become acute
with the passage of time.
I'VE are not in position to say
when or whether there will be
a sterilization of passengers and
expenses which will bring about
a measure of stability in the
affairs Of Baltimore Transit Co.
We may fairly conclude. how
ever, that unless such stability
is achieved in the relatively near
future, Baltimore City may ex-
pect recurring crises Of various
kinds in its transit picture"
Handed S25O.OOO Check
The sale was announced pub
licly at the District Building at
1855 o'clock this morning. 1T
came Immediately after officials
of Capital Transit had arrived
and notified the District Com
missioners and members of the
Public Utilities Commission.
In the group were Mr.. Broad
water, E. c. Giddings, Capital
Transit vice president; B. w
Franklin. National City Lines
vice president: Robert Thrum Of
National City Lines general
counsel's Office. and S. G. Stew
art, National City controller.