Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-02-19
Study Will Stort
ornorroW on
Area Authority
BY HECTOR MCLEAN

ACIiOL Ol Iilc WdolI1IlSV Oli
transit crisis shifts to the House
side of Capitol Hill at 10 am.
tomorrow when the Interstate
and Foreign Commerce Commit
tee starts hearings on the Dis
trict Commissioners bill to set
up a Washington Metropolitan
Transit Authority.
The authority is designed to
take over the city's mass trans
portation system when the Cap
ital Transit Company goes out
of business by act of Congress
next August IA.
Meanwhile, Engineer Commits
sioner Thomas A. Lane warned
last night that I'VE probably are
already past the point where the
authority could supply all new
buses by August Is" to replace
the existing streetcar-bus sys-
tenn.
Used Buses Probable
And, he declared, THE author
jity's ability to serve the people
is decreasing every day."
If the street railway system Is
strapped, the authority would
have to acquire many used buses.
These. he said, might be all or
part of the bus fleet now owned
Iby CTC.
Gen. Lane, interviewed on Re-
port to the People" over WWDC,
said "it is not desirable to make
up fleet of a great variety Of
makes. models and years." and
that Standardization of equip
ment is economically preferable.
At $50 a m. tomorrow, the Pub
lie Utilities Commission, which
still is seeking a satisfactory pri-
vate operator to take over the
etc franchise, plans one more
interview with Max M. Kampel-
man.
Wants Kampelman Report
Commission Chairman George
E. c. Hayes said that before tes-
ltifying at the House hearing he
wants a last-minute report from
Mr.. Kampelman on his attempts
to work out a satisfactory pri-
vate operation.
AS the city heads prepared
for the House hearings they
awaited Treasury Department re-
action to demand by Mr..
Kampelman that they ask Con-
gress to authorize 81 million loan
guarantee as a ''backstop" in the
event his financing plans fail
to work out.
Mr.. Kampelman. who repre-
Isents a group of Minneapolis
investors, also asked for a 20
year franchise and q pledge that
the Government would pay book
value to his company If the
franchise should be cancelled
during the life of the franchise.
| The hearings will be held by
the Transportation Subcommit-
tee of the House Commerce Com
mittee. headed by Representative
Harris, Democrat of Arkansas.
Opening testimony on the Cow
ernment-ownership bill. he said,
will come from the District Com
missioners, the Utilities Commits
sion, the Interstate Commerce
Commission and the Securities
and Exchange Commission.
The Senate District Committee
completed hearings on the bill
last week, and was expected to
consider it in executive session
some time this week. The record
of the hearing, held open for last
minute statements by any inter-
Iested parties. will be closed at S
pm. tomorrow.
One other attempt to work out
"a satisfactory private plan still
was being made. Acting for
Morris Fox, president of the
B. g. F. Transportation Company.
Attorney Edward F. Colladay was
trying to negotiate a deal to buy
control of Capital Transit from
Louis E. Wolfson, Florida multi
millionaire.
G. M. Talks on Buses
Mr.. Colladay said yesterday he
would have something to say"
tomorrow afternoon, but declined
Ito elaborate on the subject or
the manner and place of dis
closure He said he has been
drafting legislation which would
be needed if the Fox deal goes
Through and he seeks restoration
Iof the etc franchise.
Late yesterday. Mr.. Hayes said
he still had not been satisfac-
Itorily assured about the number
Iof used buses to be supplied.