Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-04-18
Committee Studies
Franchise Renewal
Senate, House
Groups Discuss
Differing Bills

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The full House Interstate and
Foreign Commerce Committee
today began a special meeting
on a bill to restore the dying
franchise of the Capital Transit
Co.
The meeting came only four
hours before the Senate District
Committee was to meet on a
dramatically opposed measure
to set up publicly owned
Washington Metropolitan Tran
sit Authority to take over the
transportation system next Au-
gust.
The House committee meeting
was announced by Chairman
Priest, Democrat of Tennessee,
only hours after the restoration
measure had been approved yes
terday by the Transportation
subcommittee, headed by Rep
reSentative Harris, Democrat Of
Arkansas.
Sure of Transportation
Il don't know what we'll get
out of it," Mr.. Priest said, but
we can be sure of having some
form of transportation after
August Ia" when, under present
legislation. the etc charter and
franchise are scheduled to die.
If the restoration measure is
approved by the full committee,
Mr.. Priest said, he will ask the
House Rules Committee to let it
come up on the House floor for
debate. Capitol Hill observers
expected quick approval from
that group, pointing out it is
headed by Representative Smith.
Democrat of Virginia. a veteran
member of the House District
Committee, who is deeply con-
Icerned with Washington prob
lens.
If both committees approve,
Mr.. Priest SAID. the time for floor
debate will be set by the major
lity floor leader. Representative
Mccormack, Democrat of Mas
sachusetts.
Unanimous Approval
Mr.. Harris said the restoration
bill had been approved unani-
mously by all nine members of
the 11-man Commerce subcom-
! mittee who were present. Also.
he said. the measure had been
approved in a letter by Repre-
sentative Wolverton, Republic
can of New Jersey, ranking mi
nority member of the group. The
eleventh member is Represent
ative O'Hara, Republican of
Minnesota, who has been hos
lpitalized with a heart attack.
The restoration bill was
worked out in conferences be-
tween the House subcommittee
and j. A. B. Broadwater, presi-
dent of etc. Mr.. Harris said
Mr.. Broadwater had told the
subcommittee the bill is salts
factory to him and that he
would recommend approval Of
the proposed new franchise by
the directors and stockholders
of CTC.
Not in House
The new franchise restoration
bill has never formally been in
PRODUCED in the House. Tech
neatly, the subcommittee had
before it two identical bills pro-
posed by the District Commits
sioners to set up a publicly
owned transt authority.
Mr.. Harris said the subcommit-
tee would take the title of one
of the authority bills. "HR 1901
:. A bill to provide for an ade-
quate and economically sound
transportation system or systems
to serve the District of Columbia
and its envlrons; to create and
establish public body corporate
with powers to carry out the pro-
visions of this act, and for other
purposes" and substitute after
the enacting clause the language
of the franchise restoration bill.
Jurisdiction Move
This would leave the measure
within the jurisdiction of the
Commerce Committee. Mr.. Har-
ris has pointed out that if the
bill had been introduced as an
independent measure, it would
have been referred to the House
District Committee, despite the
extensive hearings held by the
Commerce Subcommittee.
The House bill would freeze
etc streetcar and bus fares for
one year after next August IA;
require the District Public Util-
tiles Commission to act within
80 days on future company re-
quests for fare increases; exempt
etc from the Districts gross re-
ceipts tax. and conditionally
from the District Motor Vehicle
Fuel tax: and declare as a mat
ter of Legislative determination"
that a return Of So per cent on
the etc rate base is the fair
and reasonable return which the
company shall be afforded the
opportunity Of earning.
Freezes Rate Base
The measure also would freeze
the etc rate base, as of last
July 81, at 1856 .678.76 and
fix the depreciation rate on prop
erty owned then by etc at the
level previously set by the Pub
lie Utilities Commission.
In addition. the House bill
would exempt the company from
costs of snow removal, except
for the expense Of sweeping its
own tracks. and require the COM
pany to start on a seven-year
program Of converting to an all
bus system.
The Senat bill is a version Of
q rronOca1 he tha nictrint Cn,,a