Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-02-16
BY CHARLES L., HOFFMAN
star stan Correspondent

De1t SteA SoAA~~NSAeN~~$
ANNAPOLIS. Feb. ls.-Balti-
more Transit Co. has no desire
Ito have a repeat performance OF
what its attorney called "the
washington debacle." Maryland's
grand inquest was told yester-
lday.
The attorney, Joseph Sherbow.
said that IN response to union
demands for a settlement on the
Washington pattern, he hoped
1.-THE Baltimore transit union
never found itself in the posi-
ton Of the Washington union,
which may face a situation on
August IA when it will have
mo contract and no company"
The Legislatures grand in
quest into the l8-day-old Balti-
more transit strike is in recess
today after three days Of tes-
ltimony representing the public.
union and company positions In
the dispute.
Five-Hour Presentation
! Mr.. Sherbow spent some FIVE
hours yesterday presenting the
Icompany's side. in the dispute
and warned that If the company
accepted the union demands Il
would be thrown into bank
lruptcy and would force public
Ownership.
/ His warning came as he cate.
Igorically denied published
lcharges that both the union
and the company might be using
the strike to force public own
Iership.
/ If the company sought this
course of action, it simply would
accept the union demands anc
then find itself in such financial
straits that public subsidizatior
would be necessary. MIR. Sherbov
Isaid.
| The cost of union demands
that can be computated at thi!
time would be S3.2 million fol
zone year and $9.9 million fol
three years, II the union &C
,Icepted the longer contract sought
'lby the company, Mr.. Sherbov
said.
1 The grand inquest viii be re-
5Stimed at 10 am. tomorrow. with
Especial counsel Jerome NJ. Alpel
Expected to call union spokes'
linen back to the stand for cross
Examination.
/ Mr.. Alper said he wants to dill
deeper into the conflicting testi'
,Imony on the company's finan'
Icial situation and into the basit
differences over arbitration as {
settlement means.
| He also is expected to aim ont
lime Of questioning at the COM
'Ipany and union spokesman con-
lcernine their differences on the
importance Of ability to pay as
criterion to be considered ir
reaching settlement Of thu
,lcurrent dispute.
Il Union spokesman. on Tuesday
commended the company's ability
ito pay was not a revelant matter
in contract settlements.
Mr.. Sherbow yesterday, how.
ever. took a strong position U
conflict with this view and main.
tanned that the money to meet
union demands had to come
from the fare boxes.
Il At the same time Mr.. Sherbov
tainted that fare increases might
Ibe necessitated and that, II tn,
present l8-cent fare must be in
creased, the union would have tt
shoulder the blame for the raise
| Fair Return Cited
Mr.. Sherbow also emphasized
that the stockholders in tn,
transit company are entitled
under Maryland law. to fair re-
turn on their investments.
/ He added that the net incom,
Iof 1897, 276 of last year. undel
normal conditions Of dwindlint
transit income. could be expected
ito be only $586.300 this year
less than a third of the fair rat
6f return.
/ Continuation of the strike TO
une month. he said, would Gu
this to $342.800..
Every day the men are OF
strike there will be less witt
which to pay them" Mr.. Sher'
bow said. He added that the wag'