Evening star., 1958-07-15
DC. Transit
Loses Motion
In Rate Case
Bid to Bar Two
Competitors From
Hearing Is Denied
BY JOHN w. STEPP
star stan Writer

d. c. Transit System lost its
latest bid today to exclude two
of its sightseeing bus
service competitors from the
current mass transit fare in
crease proceedings.
A motion having that spe-
cific aim was rejected by Har-
old A. Kertz, acting chairman
of the District Public Utilities
Commission. Transit Attorney
Harvey Spear submitted 1t as
the rate hearing was resumed
from its initial session June 80.
Mr.. Spear argued that the
appearance of Gray Line. Inc,
and Safeway Trails, Inc. in the
case as intervenors was made
moot over the week end. He
referred to a surprise offer from
Transit President o. Roy Chalk
to the commission to segregate
from the current rate case all
the company's profits and losses
involving D. c. Transit's sight
seeing-charter bus, Government
contract and limousine opera
tiOnS.
Safeway Attorney william A.
Roberts objected to the motion
on the ground it was "only an
agreement to agree" Attorney
Abe Krash, representing Gray
Line. said that, regardless of
the Chalk offer, his firm still
has a substantial interest in the
proceedings and the RESPONSE
bility to help bring out all the
facts for the record.
Subsidy Charged
Mr.. Krash asserted that,
whereas D. C. Transit acknowl-
edges some 100000 losses in
its charter bus operations last
year, Gray Line has reason to
believe Mr.. Chalk's firm has
taken an even greater beating.
The lawyer pointed out that
ID. C. Transit receives "tre-
mendous" tax benefits and
monopoly rights under its Con-
gressional franchise. Arguing
that the company operates
under what amounts to a sub
sidy, Mr.. Krash demanded,
why should the school chill
dren of Washington be made
to bear the cost of providing
sightseeing service for tourists
from Chicago and Cheyenne?"
Transit 4 Attorney Spear
bristled at this remark.
He, asserted that any argu-
mentS on the principle of sub
sidy amount to implying a "de-
vious backdoor method Of par
ticipating in the case"
IF Gray Line is permitted to
intervene" he urged the COM
mission, "conflne them to the
facts rather than permit them
to drag in the red herring of
public subsidy"
Intervention Seen a Benefit
Acting Chairman Kertz, in
ruling favorably for the inter-
venors, said the commission
probably will benefit by the in
tervention. He admonished
both Gray Line and Safeway,
however, to refrain from going
on any fishing expeditions and
to restrict their croSs-examina-
tion of D. C. Transit witnesses
to those issues germane to the
case.
Before the fight over the mo-
tion got under way, still another
intervenor, The Federation of
Citizens Associations, got in on
the act. Edward c. Wilcox,
Chairman of its Public Utilities
Committee. issued a statement
calling for abandonment of
plans to spend $1.6 million to
remove streetcar tracks and
convert that service to an all
bus operation here.
Mr.. Wilcox asserted this
would not only preserve a
splendid" existing streetcar
system, but would also reduce
a D. c. Transit expense item
in such a way as to enhance
its earnings.
The preliminaries out of the
way. croSs-examination by the
commission staff of d. C..
Transit's lone witness to date
began. The witness, James H.
Flanagan, vice president-con-
troller and treasurer, was grilled
on the company's stated prefer
ence to switch to the so-caIled
operating ratio of computing
the rate Of return on invest
ments in the system.