Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-01-03
Chalk to Garry Fight
To joint Committee
Announces Plan
After Utilities
PorIey Fails


D. C. Transit System owner
o. Roy Chalk conferred today
with the District Public Utilities
Commission, trying to determine
the amount of profit he can
expect.
After the meeting. he an
nounced there was a difference
of opinion" and that he will seek
ia meeting with the members of
the House-Senate Conference
Committee which wrote his 20
year, partly tax exempt fran
Ichise last spring.
Meanwhile, the Public Utili-
ties Commission issued an order
putting into effect one item of a
Inine-point program proposed by
Mr.. Chalk to speed service and
cut costs. The order abolished
bus stops on 81 streets along six
major routes and established
four new stops and increased the
size of five other stops.
Mr.. Chalk said he would ask
the District Commissioners to
accompany him before the COM
mittee in an effort to clear up
the intention of the franchise
writers on the basic formula that
will determine his profit allow
ance.
Problem Called urgent"
| Mr. Chalk declared the prob.
lem was urgent" adding that
lin the next few days I expect
to make commitments with
banks and financial institutions
on the company's expansion and
replacement program for the
coming year"
The utilities commission has
| ordered Mr.. Chalk to show cause
why the value of the transit COM
pany properties should not be
written down to the amount of
Mr.. Chalk's net investment.
rather than the valuation APP
proved by the commission for the
old Capital Transit Co.
Also, the commission issued a
similar order on a proposal to
cut in half for 10 years the 50
million year depreciation figure
which Mr.. Chalk can charge as
, an operating expense.
Mr.. Chalk today indicated he
felt the lawmakers who wrote
his franchise mad intended him
to be able to calculate profits
ON the old valuation of etc, if
he were not permitted to shift
, Immediately to a procedure for
. calculating them on the basis
of gross transit income, as he
already has asked the utilities
commission to do.
; Commission to Wait
Utilities Commission Chair
man George E. c. Hayes stressed
that his agency must operate
under legal procedures, but is
postponing any decision on Mr..
Chalk'S requests until after the
Capitol Hill conference.
The order relocating bus stops
on six lines said the average
number of stops a mile would be
60 and would result in an aver
age distance between stops of
about $50 feet"
The lines and the routes in
VOWED arc Anacostia- Congress
. Heights. Connecticut avenue.
Crosstown. Michigan avenue,
Rhode Island avenue and Six
teenth street.
The commission order de-
. clareG. 1T appears that the bene-
fits to be gained by Improvements
in speed of service by this pro-
posed reduction in stops would
outweigh the inconvenience to a
minority of bus patrons who
. travel to or from locations near
the stops to be discontinued"
The change will become effec-
tive progressively as the company
and the District Highway De-
partment remove signs and put
in new ones.
Had Seen Commissioners
The New York airline operator.
who recently bought out the old
Capital Transit Co., had con-
ferred late yesterday for nearly
an hour with the Districts Board
of C-''-'-., .1ncrs. lie said tho
session was intended to deter
mine his prospects, particularly
with reference to taxes and
profits.
IF it's to be $780, 900 that's one
thing" he said. But if it's ST.
million that's another thing, and
if it is So million that's still an
other matter"
A November financial report Of
the company disclosed by the
utilities commission yesterday
showed his profits for the month
at AZ per cent in relation to
the total transit income of more
than So million. On a yearly
basis, this would indicate po-
tential profit of about 81 million.
Has Tax Exemption
Mr.. Chalk, under his 20-year
congressional franchise. will be
!, exempt from about 100000 in
District gasoline taxes to the
extent that he fails to make a
,, profit of 65 per cent, either in
relation to the gross transit in
come or in relation to the valua-
! ton of his property.
: If the utilities C o m m / S S o n
should require him to calculate
; the figure on a sharply reduced
i property valuation. based on his
$13,540.000 purchase price, it
/ would sharply cut his chances Of
escaping payment of the gaso-
! line tax.