Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-01-03

conclusion OF It's EFFORTS 10 secure
an operation under private own
ership."
Mr.. Hayes letter also made the
first formal defense Of the deci-
sion by the utilities commission
and the Board of Commissioners
to abandon streetcar operation
in Washington.
The decision appeared without
warning as part Of the commits
sion's invitation to private oper-
ators last August %. Private
bidders were asked to submit
plans for an "all-bus" operation.
Commissioner Spencer has said
since abandonment Of the hunt
for a private operator that the
decision on streetcars presum-
ably would be made by the pro-
posed transit authority after 1t
is established.
|. All-Bus Operation
+ Mr.. Hayes explained the de-
cision on an all-bus operation,
insofar as private bidders were
concerned, in these words:
THE commission believes 1t
appropriate to state. in general.
the main reason for its specifica-
ton of 'all-bus' operations, as
contained in its invitation to
submit applications for a public
transit system.
This specification logically
resulted from the project which
the commission faced-the OBJ
tanning of replacement service
commencing August IA. 1856.
The commission could not offer
Capital Transit Co.'S properties
to a prospective new operator.
Such operator would have to
make his own arrangements for
transit facilities. Further. 1t has
become automatic in modern
transit economics that street car
operation at grade under pres
ent traffic conditions is not
economically feasible.
This axiom Is recognized in
the rapid convention OF street
car lines to bus lines in practi-
cally every United States city
which has such lines, except
Washington.
Rail Removal Cited
Finally, with regard to the
streetcar system Of Capital
Transit Co.. there is an obliga-
ton to remove rails and repave
streets. which is estimated to
amount to approximately $11
million. not allowing for salvage
values.
The effect of public law 389
(Which kills Capital Transit CO..
was to leave this entire obliga-
ton with the Capital Transit
Co. Since the amount Of this
obligation is not much below the
book value of the rail proper
ties. it was apparent that an OPP
orator could not accept this OBJ
legation unless he received q gift
of the rail properties or unless
he hoped at some future time
to transfer the track obligation
to the public.
THE opportunity to offer a
completely new franchise of
this magnitude and Importance
is so unprecedented in recent
transit history that this COM
mission considered it necessary
TO make very clear to all pro-
spective operators that no obli-
CATION to purchase Capital
Transit Co. properties was in
Ivolved.
Despite the convincing evil
Idence that a new transit opera
ition could only be economical If
Ipredicated upon an all-bus tran
sit system, the commission did
not preclude the submission of
plans involving the retention of
rail facilities. 1t indicated to
all prospects that it would con-
slider such plans, provided the
basis for acquiring and operating
rail properties was reasonable
and in the public interest"
Discusses Authorities
Discussing authorities such as
that proposed to run the Wash
ington transit system. Mr.. Hayes
said:
"A public authority is financed
on the basis Of revenues derived
from the operation of the par.
ticular project for which it i!
established. A public authority
has and requires no power Il
levy taxes for any purpose what.
soever. Its operations are similar
to those of a private corporation
Members of the governing
boards Of public authorities are
normally drawn from leading
citizens of the community, at.
tracted to the civic responsible.
ties in an essential public service
operated along the lines of 9
private corporation. In Cleve.
land, Chicago and Toronto pub
Ilic authorities provide modern
efficient, progressive and flnan.
cially sound mass transportation
services"
Mr.. Hayes also disclosed tina
the commission had considered
"a number of investment bank.
ing firms" to give advice on or
ganizing and financing the pro
posed authority.
He said two firms sent repre-
sentatives for preliminary dis
cussion" and that both repre-
sentatives indicated that sound,
organized public operators coult
be financed by revenue bondl
and that their firms would b,
interested in handling the is,
sues"