Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-06-20
Chalk Reduces
HisCOnditions
In Transit Bid
City Heads Expected
To Report Proposal
For Public Setup
BY HECTOR MCLEAN

o Roy Chalk, wealthy New
York real estate owner and air.
lines operator who is attempting
to upset the National City Lines
purchase of Capital Transit Co.,
today cut his demands for
franchise operating conditions
'in a final effort to give private
enterprise an opportunity to
operate an effective transit sys-
tenn"
@ With the District Commits
sioners preparing a report to
House and Senate transit con-
ferees which was expected to
recommend establishment of a
publicly owned transit authority,
Mr. Chalk said he had sug-
gested to the city heads chat
I would not like to be the one
10 recommend to Congress pub
lie ownership at this particular
time In this particular year in
the light of so serious an offer
from private enterprise"
Observers pointed out that
this particular time in this
particular year" is only four
months before a national presi-
Dental election.
Accepts SIS Million Value
Mr. Chalk said he understood
that $18.9 million is the current
value of etc investment in pub
lie service property. "If $3.50
million, with the present return
Of 6l2 to ga per cent, is con-
sidered q fair minimum then we
will accept an even lower figure
of $18 million, We are willing to
accept this assurance in writing
from either the Public Utilities
Commission or Congress"
Despite his request for writ
ten stipulation. he issued a state
ment after seeing the Commits
sioners and declared:
II have accepted every term
as requested by the District
Commissioners with no exception
in final effort to give private
enterprise an opportunity to
operate an effective transit
system. / have consented to-
the elimination of the much
disputed IA and 2-B clauses
(from the House bill to restore
CTC's franchise) which would
legislatively set the rates of
return and the rate base and
deprive the Public Utilities Com
mission Of its prerogatives.
'The only proviso which We
have made would be based upon
the establishment of a fair
minimum below which the Pub
lie Utilities Commission is for
hidden by law to venture and
could be established specifically
at any point below the present
formula and amount which, by
virtue of its establishment by the
Public Utilities Commission, is
presumed to be fair"
Confer With Commissioners
Mr.. Chalk and his associate.
Morris Fox, president of local
trucking company. conferred for
half an hour this morning with
the Commissioners. This came
on the heels of statement yes
terday by Robert E. Mclaughlin.
president of the Board of Com
missioners. that the city heads
did not regard as acceptable"
the franchise conditions desired
by National City Lines or by the
two other groups seeking to buy
out etc. which is scheduled to
go out of business by act of
Congress on August IA.
The Commissioners had said
Mr.. Chalk's requested franchise
had agreed with their ideas on
a proper version except that Mr..
Chalk and Mr.. Fox wanted to
retain, in a proposed legislative
franchise, language stipulating
that the CTC investment in pub
lie service property was slightly
more than $40 million as of last
July 81.
Also. he wanted a legislative
Continued on Page Ais. Col. l