Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-04-15

sional authority was necessary
to do so.
Capital Transit itself has not
usually been thought of in
connection with issuance of a
permit since Congress, effec-
tive at midnight next August
Il. has revoked not only the
company's franchise, but its
= corporate charter.
A New Copitol Tronsit
The new idea suggested by
Gen. Lane. who is q member of
the utilities commission, was
that Capital Transit might re-
organize under the Districts
1854 corporation law and then
seek a commission permit.
The idea has several inter-
eSting angles. CTC is perhaps
the only company which could,
on a practical basis. afford to
consider operating only on a
permit. 1t has all the capital
it needs. and already owns all
the necessary buses and street.
cars. There are no problems Of
obtaining additional credit.
Whether the company would
be interested in operating
merely on permit is, Of
course. another matter. The
answer probably would depend
on what the utilities commits
sion might have to bargain
with during negotiation.
The company has asked the
House Commerce Subcommit-
tee headed by Representative
Oren Harris, Democrat Of
Arkansas. for several conces-
sions. including tax relief.
More particularly. the COM
pany asked for a large measure
Of freedom from regulatory
control by the utilities COM
mission, with which CTC has
been feuding for several years.
The central idea was that the
company would be allowed to
set its own fares SO long as its
rate of return did not exceed
Ga or 7 per cent.
Way Open for Bargaining
At present the company is
operating under fares which 1t
won from the District Com
missioners through negotiation
TO settle last summers strike.
And. General Lane says. the
company could negotiate with
the utilities commission on the
terms of operation which
would be outlined in the per-
init. BY this process. presum-
ably. 1t could bargain for free
dom from control and even for
the fares it wants.
And, on August Is, with no
transit operating in Washing
ton if Congress has not pro-
vided it, the utilities commits
sion would be in mighty poor
bargaining position.
1t is doubtful that Capital
Transit could be satisfied by
what the utilities commission
might be presently empowered
to give, so congressional action
still would be necessary.
Congress doesn't want to act
at all, of course. Also. it may
be incapable Of acting If the
House and Senate come to a
complete Stalemate over their
pet solutions for the transit
crisis, 1t is believed the House
probably will pass a bill to
give back the franchise to
CTC. while it is expected the
Senate will approve public
ownership. Trying to push
either bill through the other
House could cause a real battle.
1t is conceivable, though.
that both Houses might agree
to a measure which would sim
ply empower the Utilities
Commission TO grant the sew
eral proposed kinds Of tax
relief TO anyone to whom it
issues a permit.
This would avoid the EN-
barrassment to Congress of
giving back the etc franchise
itself and please many law
makers by putting the respon-
sibility for solving the mess
right OH the commission.
In any event. unless some
body does something. the city
has only l2l more days OF
transit service. ,