Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-02-08
Transit Hearing Set
At Capitol Tuesday
3-Doy Session
Called to Air
Authority Ideas

Authority Ideas
Chairman Nicely of the Senate
District Committee today sched-
uled three days of public hear.
ings beginning at 2::30 pm.
Tuesday on the proposed public
authority to take over operation
of Washington's transit facilities
August Is.
Hearings will be held in the
Senate District Committee room
Tuesday, Wednesday and Thurs
day. according to present plans.
Apparently. the committee has
given up hope that a qualified
private operator can be found.
Already. Chairman Nicely and
some other members of the COM
mittee have indicated exaspera-
ton over the continued review
of efforts by some private groups
to get permit. Senator Nicely
wants to set aside 1.-The dead
ducks" and to get ahead with
the business of assuring contin-
uation of service after the Capi-
tai Transit Co. charter and franz
chise expire August IA.
Witnesses Slated
Witnesses to be heard Tuesday
will be the Commissioners, mem.
bers of the Public Utilities Com
mission and Walter Cleave of the
Chicago finance firm of Blythe
g. Co.
Asked whether any of the APP
plicants for a private franchise
would be heard, one committee
source said: Il don't think so,
but in this situation you never
quite know"
Two private groups of would
be transit operators still were
trying to raise money to go into
business next August Is.
Although the Commissioner
were ready and waiting yester-
day to justify their proposal
for a Washington metropolitan
transit authority, the committee
devoted itself to what Senator
Morse, Democrat of Oregon,
called a review of the search
by the District Public Utilities
Commission for a private OPP
orator to take over the CTC
franchise.
Door Left Open
At the end, the committee APP
peared agreed that it should not
consider any private plan until
and unless it has been recon-
mended by the utilities commits
sion. Assured that the door
would be left open for any sub
stantial proposal finally arranged
by private operators, the COM
mittee seemed ready to confine
itself to considering the Com
missioners' public ownership
bill.
The measure was proposed
after the utilities commission
and the Commissioners had de-
cided they had no satisfactory
proposal from potential private
operators.
Yesterday, the committee found
itself caught up in details of
the effort by Morris Fox, presi-
dent of the B. & F. Transporta-
ton Co., to raise money to buy
control of the Capital Transit
Co. from Louis E. Wolfson,
Florida multimillionaire.
Stempil Appears
Acting merely as his attorney
was I. William Stempil, organ
lizer of the Washington Rapid
Transit System. Inc, one of six
original applicants for the etc
franchise.
Mr.. Fox told the committee
that efforts to raise the money
SO million-were being made in
New York by Edward F. Colladay.
counsel for the Washington
Board Of Trade, who had been
retained for the purpose. Before
the session ended. Senator Beall.
Republican of Maryland, said he
had just heard from Mr.. Cola
day that a letter would be COM
ing today from the First Ma
tional City Bank of New York
and-that the City Bank of WASH
Iington wants in on the deal"
Preliminary Study
Mr. Fvx indicated the al had
been approved by all out one
man in the New York bank.
From New York, Mr.. Colladay
agreed that he was making
some negotiations on behalf Of
Mr.. Fox and his company" but
confined himself to saying, 1.-THE
financial institution with which
/ am dealing. at my request, has
studied the matter in a pre-
Iliminary way and informed me
they will explore it with inter-
est"
Mr.. Fox refused to give a yes
Ior no answer when Senator
Morse inquired repeatedly over a
three-minute period ending at
1928 pm, LAS of 1923 pm. do
you have all the money to COM
lplete the purchase of Capital
Transit stock?"
Subject to the recommended
ton for a franchise, yes" Mr..
Fox insisted.
Although Mr.. Fox said the net
worth of his company was $685.
04l.34 as of last october 81, and
offered to pledge it all as security
for financing, plus a certified
check for $250.000. he got scant
encouragement from the COM
mittee. Senator Case, Republic
can of New Jersey. called the
proposal complicated and du-
bious.' Senator Morse labeled it
highly conditional, speculative
and =. an improper proposal"