Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-07-03
Chalk Expects
ToSignContraci
Conferees to Meet
Monday on Terms
Of Franchise Sale
BY HECTOR MCLEAN

o. Ray Chalk today told the
District Commissioners he hopes
to sign a formal contract Friday
for the purchase of Capital
Transit Co.
Mr.. Chalk. accompanied by his
associate, Morris Fox. president
Of local trucking company, and
their attorney, E. F. Colladay,
made an hour long report to the
Commissioners.
Mr.. Chalk said he has seven
attorneys working in the Office
of CTC General Counsel Edmund
L. Jones to complete drafting of
the formal contract. Mr.. Chalk
said he expects the draft will be
completed today and will be
submitted Thursday to Chase
Manhattan Bank in New York
City. The document. he said.
will be brought back to Wash
ington late Thursday or early
Friday for formal signature with
Capital Transit Co.
Mr.. Chalk said he had assured
the Commissioners that he is
hopeful of completing acquisition
of etc by August Is. the day
after the etc franchise is to
expire.
ConfereeS Hear Report
Yesterday. House and Senate
transit conferees met and heard
a report from the District Com
missioners on the agreement
reached early Saturday morning
between Capital Transit's board
OF directors and Mr.. Chalk for
purchase of CTC's assets Of
liabilities and the creation of a
new company to be called the
D. Z. Transit System, Inc.
Afterw ards, Senator Nc
Namara. Democrat of Michigan,
chairman of the. conference
committee, and Representative
Harris. Democrat of Arkansas,
leader of the House confereeS,
said the lawmakers had taken no
action. They explained the COM
mittee adjourned until 2::30 pm.
Monday to allow time for the
contract between Capital Tran
sit and Mr.. Chalk to be COM
pleted in detail.
Not in Shape
Senator Mcnamara said the
deal was mot in such shape that
we could act on it." The deal.
according to a letter from j. A.
B. Broadwater. president of
CTC, to Mr.. Chalk, was &C
cepted subject to the parties
agreeing upon the terms of a
formal written contract
Formal resolutions signifylng
the foregoing are in process of
preparation" it added.
The conferees refused to grant
a requested audience by attor-
neys for Samuel j Solomon
president of California Eastern
Aviation, Inc. whose competing
bid to CTC was turned down by
the CTC board of directors and
the District Commissioners.
The board of directors, it was
explained. felt it could not sell
to MI. Solomon unless the Dis
trict Commissioners would prom
Use to recommend to Congress
that he be given a franchise to
operate the system. The COM
missioners said they would not
agree to recommend Mr.. Solo,
mon because he was unable to
accept their franchise "criteria
at the time.
Cites Comparative Deal"
Yesterday William Burt. of
the firm of Martin e. Burt, coun-
sci for California Eastern, sought
an audience with the conferees
to urge that Congress not fore
close them from participating IN
a comparative deal" for Cap
ital Transit in competition with
Mr.. Chalk.
Contending that the Commits
sioners had exceeded their ad-
ministrative discretion in seeking
an individual franchise holder,
Mr.. Burt urged that Congress
should set the standards for a
franchise but that the Commits
sioners should hold administra-
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