Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-07-02
|Conferees Will Act
Today
Preparation Of
New Franchise
Also Scheduled

Senate and House confereeS
are scheduled to meet at 2::30
pm. today and they will be
asked to approve the deal for :
the sale of Capital Transit's as
sets to the group headed by o.
Roy Chalk.
Another step would be the
drawing of franchise for OPP
Grafton by the new D. C. Tram
sit System, Inc. being organ
lied by Mr.. Chalk and Morris
Fox, Washington truck service
operator.
Corporation Counsel Vernon
E. West said he expects to send
to the Hill today proposed
amendments to the draft of
franchise already submitted.
One of the amendments, he
said, would provide for the
operation of the transit system
! if the transfer of the property
from Capital Transit to the new
operators is not completed by
August Ia. This is the date on
which Capital Transit's fran
chise dies.
Keeps Fingers Crossed
Commissioner Robert Z. Nc
Laughlin said the Board OF
Commissioners would send to
the conferees their recommend
alton of the Chalk-Fox deal
and tsk that this group be given
a franchise. This would be
with the proviso that the pur-
chase agreement goes through
and the purchasers accept the
franchise.
Mr., Mclaughlin showed a dis
position to keep his fingers
crossed. I'VE can have trouble
yet, he said. Il really think
we have the solution on the
track now-but it can be de-
rallied. !"
He described the proposal for
stop-gap operation after August
IA as being brought about by
, continuing the corporate exist
ence of Capital Transit, but
under another name, and pro-
, Vldlng for operation under no
franchise.
, He said another provision
would be TO enable the Commits
. SlonerS or the Public Utilities
: Commission to arrange for q
/ brlet period of operation is neces-
sary after August IA for the clos
, ing OF private deal, or if the
private deal blows up, to provide
: for an interim public authority.
Still another provision to be
submitted by Mr.. West, he said,
would be recommended lang
, uage change in a section OBJ
waiting 60-day delay for In.
terstate Commerce Commission
approval.
: Another change in the pro-
5 posed franchise would cover the
assumption of liabilities of the
old company by the new.
: Back Stop Favored
Edward F. Colladay. attorney
Tor the Chalk-Fox group. said
he was confident that the trans
! fer OF the property could take
/. place before the August Ia date.
But if that can not be done he
said a brief extension for Capi-
tai Transit operation would be
+. logical.
! Some opinion favors provid-
ing for setting up an interim
! public authority as a back stop
Tor the District Commissioners
IN case bitches in the sale de-
? velop.
4 Mr.. West said in addition to
] provision for bridging a possible
gap IN operations after August
IA, other proposed amendments
S would be submitted. He des-
crloed these as more or less
clarifying amendments.
The proposals are to go to the
: legislative drafting counsel of
the House. Participating in
:, their formulation have been Mr..
: Colladay and Edmund L. Jones,
: Capital Transit attorney.
S One group which has an in
teleSt in VINO will operate the
q property if the transfer is not
: completed by August IA is that
e of the company's union employees.
Negotiation Declined
Walter j. Blerwagen, union
! president, said the company de-
, clined to negotiate with the
union concerning contract for
= operation after the franchise eX-
pres The companys position
Was that since it would not have
! franchise it could not enter
: INTO contract.
If Capital Transit is given an
extension 10 operate after August
o Ia, Mr.. BierWagen said the union
: is in no mooo TO give any ex-
. tension OF the present contract
! to Capital Transit President J..
I A. B. BroadWater and Louis f.
WoliSon, chairman Of the board.
1 The company, he said, has laid
S off workers and speeded UP work.
: The almost 81 million the COM
: pany has amassed in the bank.
he said, has been taken out Of
: the hides OF the employees.
: Mr.. Colladay was asked with
e whom the union could deal if not
! with Capital Transit in case
! there is a gap after August ia.
$ He said promptly the union
could deal with the I c. A. In
vesting Corp. Mr.. Chalk COM
pany which made the purcha ie
e deal with Capital Transit early
!, Saturday.