Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-06-28
/ Capital Transit Sticks
To National City Deal
continued From First Par,

Continued From First Page
l$500.000 letter of credit he hsd
given etc.
Mr.. Solomon said his fran
lchise requests would be accept
liable" to the Commissioners and
THAT he hoped to explain them
to the city heads today.
Chalk Sets Deadline
After today's meeting, CTC
Vice President E. C. Giddings
said the board had reafhrmed
1.-THE National City contract. He
Isaid Mr.. Broadwater had pointed
Iout, as had Edmund L. Jones,
lCTC general counsel. that the
National City contract is valid
until August IA unless National
City gives it Up.
He said Mr.. Broadwater did
not recommend the Chalk Fox
proposition because the National
City Lines contract is a valid
lone and Capital Transit will
live up to the last letter of it
as a matter of good business and
principle"
Mr.. Chalk said his offer ex-
lpires at midnight Saturday and
IT doubt seriously that I would
extend it,"
Mcdonald Standing By
Mr.. Giddings said the Solomon
proposition offered a down pay
ment Of one-half in cash and the
balance over is years at 5 per
Icent interest. exactly as does the
National City Lines deal. Like
National City and the Chalk Fox
lplan, Mr.. Solomon proposed to
Ibuy CTC's assets and liabilities
and set UP new operating COM
pany.
A fourth potential buyer in
Dictated he was still just
standing by" and that CTC
was not much interested in his
proposition. This was the group
of IL Washington businessmen
headed by Harry A. Mcdonald,
former chief of the Securities
and Exchange Commission and
of the Reconstruction Finance
Corp. under President Truman.
They have put up no money,
although their lawyers designed
the franchise terms finally
adopted by the Commissioners
land the conferees.
While the conferees met yes
terday afternoon, any new oper-
ator of etc got a warning that
his labor costs are going up.
Wages Going Up
President Walter j. Bierwagen
of Division $50, Amalgamated
Association of Street, Electric
Railway and Motor Coach en-
lployes of America, announced
that union employees of etc will
Iget 6-cents-an-hour raise next
Sunday, from 50 to $2.O6 an
hour.
OF this five cents was agreed
to last August in settlement of
last summers 52-day strike.
The other penny results from
announcement Tuesday of a rise
OF 6/10th Of a point in the Wash
ington consumers price index of
the Bureau Of Labor Statistics.
Company figures indicate this
will cost etc and its successor at
the rate of $4,000 a year.
etc, under present legislation,
will go out of business August
IA. The union contract expires
on the same date. and 1t has
asked for 25-cent-an-hour
raise to a total wage of $3.50
IAN hour-equal to $92 for q 40
hour week.
City Heads at Board Meeting
The District Commissioners
attended the board meeting for
As minutes. Robert E. McLaugh-
lin, president of the Board of
Commissioners, said they had
discussed the company's Con
tractual situation and the situa-
ton on the Hill'' in their role
as "emmissaries of the con-
ferees.
Attending the board meeting
were 10 of the Is members. Alb
sent were Louis E. Wolfson,
board chairman and controlling
etc stakeholder. and his BROTH
ers Cecil and Sam. Elkin B.
Gerbert, an associate and fellow
board member, also was absent
as was former District Commits
sioner F. Joseph Donohue.
Mr.. Giddings said MIR. Broad