Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-01-15

been acquired on tremendous scale
with equipment trust certificates, Of
which SIS million may be outstanding
at any one time. These 5-to-7-year Sc
curities pay an average of 4 per cent
interest, q far higher rate than Cleve-
lands. This Is because Chicagos certifi-
Gates cannot be handled Is an operating
expense (Which they are generally con-
ceded to be- but must be deferred until
after bonds are serviced. eta esti-
mates this gimmick-forced on the
authority by the original lenders in
l947-costs the system one percentage
point in interest, or $4,000 year.
CTA is headed by a seven-man board
appointed in a rather complicated way.
Four members are named by the Gov
ernor of Illinois, subject to confirmation
by the State Senate, and three are ap-
pointed by the Mayor Of Chicago, sub
ject to confirmation by City Council.
The Governor has the power to veto the
Mayors appointments, and vice-versa.
The seven members serve 7-year
staggered terms, and may be reap
pointed. There is no political balance
required by law. Six members receive
$4,000 year each and are not required
to devote full time to CTA. The seventh.
CTA's chairman, receives $35, 900 and is
prohibited from engaging in other
business.
$4,000 SoIoy for Manager
Professional operating head Of the
system is General Manager Walter ].
McCarter, who also receives $4,000
year. Mr.. McCarter, first general man
ager at Cleveland, joined eta at its
inception.
There Is some criticism Of the high
pay, full-time status of the chairman.
Critics feel the system ends up with
two heads, instead of one overall policy
director and one chief executive officer.
BY law, eta is autonomous and self
governing. 1t may set its own fares
without recourse to any other body, and
acts as its own Public Utilities Com
mission in establishing service sched-
ules. 1t is prohibited by law from
q PAOAt VI Cul1Cl lllB q lOoo.
II CTA starts going into the red, it must
adjust fares and services; If it ends
the year in the black, 1t must spend
the money to modernize equipment.
Chicago's fares are the essence of
simplicity. Adult riders pay 20 cents
nat, with free transfers, for ride any
where inside the city limits.
To give service at actual cost, CTA
has hiked its fares an average of 100
per cent since the takeover in 1947
eta and the Amalgamated Union
have an arbitration agreement which
has averted strikes to date, though there
Is no anti-strike law in Illinois Transit
officials, however, are not overly en-
thusiastic about arbitration, contending
that in general awards favor the union.
Most Woses Top 81
There are four different hourly wage
schedules for the 7,900-man operating
force. Top rates on these schedules
range from $1.97 to $210 an hour, in
Guiding Scent cost of living bonus.
Next June these rates will rise auto
matically to between $202 and $2.15.
While CTA's costs go up, surface rid
ing is diminishing. A slight increase in
rapid transit patronage fails to offset
the surface decline, which means a net
overall. When eta started operations
in 1947, there were 1920 100000 dissatis-
ned riders on Chicago's obsolete transit
vehicles. The equipment is newer now,
and the riders are happier, but last year
there were only 625 million of them.
eta claims to have transit facilities
within three standard blocks" ~ mile)