Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-08-04
New Contract
Meetings Will
Be Expedited
BY HECTOR MCLEAN


take over operation of Washing
tons streetcars and buses in a
week and a half, today faced the
problem of working out a new
labor contract with the transit
workers union before then.
The possibility that negotia-
tons might be opened today was
raised by Mr.. Chalk at a press
conference in his Mayhower
Hotel suite last night. Then he
said he would contact Walter j.
Bierwagen, president of Division
$50, Amalgamated Association of
Street. Electric Railway and
Motor Coach Operators of Amer
lea. sometime between now and
Monday"
Several weeks ago, the union
sent proposals for a new contract
to the Capital Transit Co., whose
franchise dies at midnight Aug
ust IA as the result of legislation
passed by Congress during last
summers 52-day transit strike.
Asks $3.50 An Hour
The proposals. included a de-
mand for a 25-cent-an- hour
wage increase to bring operators
pay to $3.50 an hour, or $92 for a
40-hour-week-an increase esti-
mated by Capital Transit to cost
SIT million year.
Until today, the union has
found no one with whom to bar
gain on its new contract pro-
posals. etc refused on the
grounds it was going out of the
transit business at the same time
the labor contract expired. Mr..
Chalk also refused to do so until
after etc stockholders had for
mally ratified his deal to buy all
of CTC's property.
They did so yesterday at a
special stockholders meeting,
with 754,593 of the company's
100000 shares of stock voted in
favor of the $13,540,000 deal.
This was 1876 per cent of the
total stock-11.93 per cent more
than the 640,000-share two
thirds majority required. Oppos-
ing the sale of all the company's
property were 1928 shares, or
Lao per cent of the total stock.
Some 20 per cent of the COM
pany's stock was not voted at all.
AS of August IS, this will leave
Capital Transit's stockholders
with the shell of company own
ing nothing but money-$9.6
million in cash and a $3,940, 900
mortgage on the real estate Of
Mr.. Chalk'S newly established
ID. C. Transit System, Inc. The
mortgage is payable over IS years
at 5 per cent interest annually.
New Ventures Endorsed
In a series of six other ballots,
the stockholders voted by some
$4,000 to about $4,000 to con-
tinue the life of etc perpetually,
to change its name to the Uni
versal Corp. and to let it go into
almost any kind of business, as
yet undecided. One stakeholder
commented it could do practi-
cally anything except run street
cars and buses in Washington.
At his press conference later
in the evening, Mr.. Chalk an
rounced he was abandoning an
effort to CLOSE" his deal with
etc Immediately instead of
waiting until August IA. He said
all title searches and other legal
mechanics have been completed
and that the new management
wanted to take over at once.
He said he even had on deposit
at the Riggs National Bank the
SOL million balance of his down
payment. of which 100000 has
been put up with etc already
as evidence of good faith.
The plan for immediate clos
ing. he said, was blocked by diff
ferences between CTC's fran
chise which dies August IA, and
his own franchise, which goes
into effect August is. His fran
chise provides several kinds Of
tax relief which CTC does not
enjoy.
Attorneys in Accord
He said all attorneys involved
were agreed that it was impos-
sible to take over under the new
franchise before the expiration
of the old one.
Thus, he said. the mechanics
of closing the deal will start at
10 am. August IA, as scheduled,
and will end at 1901 am. Au-
gust is when he can officially
take over.
Mr.. Chalk said he had not yet
decided on all of the officers and
directors of the new company
and that this would be an
nounced soon after he takes
over August Is.
He said all officers of the COM
pany, other than the president,
would be continued in their Jobs.
He answered yes when asked
if Morris Fox. local trucking
operator who brought him into
the transit picture. would have
a titled position. but he re-
fused to elaborate.
OF the union, Mr.. Chalk de-
clared. Il am most optimistic
that we can Come. TO a mutually
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