Evening star., 1958-05-13
Chalk to Answer
Charge Of 'Raiding'

Peril to Smaller
Tourist Firms
o. Roy Chalk, president Of
d. C. Transit System, has
been called before a congress
sional committee to answer
charges he is using his monop-
oily powers to crush smaller
sightseeing competitors.
The House Small Business
Committee scheduled his ap-
pearance for Friday after hear
ing independent operators pro-
test yesterday he was "raiding"
their businesses.
Mr.. Chalk. the utility ty-
coon. knocks out the little fell
low," maintained Paul A. Swan.
president of the Washington
Sightseeing Operators Associ-
alton. Inc.
Warning by Mclaughlin
A warning came. too. from
Robert E. Mclaughlin. presi-
dent Of the Board Of Commits
sioners, that little firms couldn't
hope to compete strongly with
! Mr.. Chalk under present law.
Mr.. Mclaughlin reminded
Congressman that they had
created the D. C. Transit mo-
nopoly and granted the system
about 81 million in tax exemp-
tions. These provisions. strongly
urged by the Commissioners.
we're written into the 1855
franchise of D. c. Transit. They
were aimed at pumping life into
the ailing local transit opera
ton.
In the same franchise, Con-
greSs authorized the system to
engage in sightseeing. So D. c.
Transit is operating legally, Mr..
Mclaughlin said.
Since then, Mr.. Chalk has set
up a central city sightseeing
. headquarters, tripled his feet
, of limouSines and solicited
Federal City tour customers in
| other cities.
Danger Seen
Today, Washington's small
independent firms are in danger
| of being wiped out, Mr.. Swan
said. He maintained that D. c.
' Transit has used its monopoly
! position and tax exemptions to
> finance a campaign to destroy
! the small, individual compete
' tive taxpaying sightseeing con-
Germ"
Mr.. Swan said his own Fed
!; eral Sightseeing Tours lost its
ticket sales concession at the
Stratford Hotel to D. c. Transit.
The larger company obtained
this concession by offering a
commission of 5 per cent more
than Federal Sightseeing had
been paying over the years. ac-
cording to Mr.. Swan.
He said D. c. Transit was so
D intent on obtaining this con-
ceSSion that it even offered to
: buy the hotel or fill it with GUS
t toners in order to get the
business.
The loss means a reduction in
revenues of about $500, or 20
per cent of yearly revenues, for
Federal Sightseeing, Mr.. Swan
testified. He said he was forced
, to merge with another COM
: : pany in at attempt to survive.
Retaliation Charged
When he discussed his
troubles with Mr.. Chalk. Mr..
Swan said, the transit execu-
tive replied by stationing a
company guide in front Of his
competitors Office to solicit
business. Mr.. Chalk also has
sent sidewalk solicitors else
where throughout the down.
town section and stationed
them regularly outside the
} White House, Mr.. Swan testi-
fed.
In my mind these tactics
bear a striking resemblance to
! the goon squad which is gen.
5 orally associated with malicious
' intent. Mr.. Swan said. He
asked for strong and vigorous
S action from Congress and the
: District government to halt
s D. c. Transit's monopoly at
3 tempts." Otherwise, he said, all
. small sightseeing businessmen
! will be added to the rolls of
! the jobless.
His testimony was backed by
! Chester M. Atwood, president
Of Atwood Transport Lines, Inc,
= Mr.. Atwood said he had started
as a guide on the street and
through the years had de-
: veloped his business to a fleet
! Of 80 de luxe buses. His rev.
! enues ran more than $500. 900
? per year, he said.
In contrast to the time when
he developed his business in a
e free market" Mr.. Atwood said
he now is competing with a
= powerful monopoly - D. C.
J. Transit.
Lavish Promotion Alleged
: I'VE are the victims of ex-
r travagant expenditures for ad-
n vertising." Mr.. Atwood said.
He testified that Mr.. Chalk,
because of his monopoly con-
p ditions, was able to channel
money saved in tax exemptions
e into sightseeing promotion in
q other cities. Local transit riders
apparently are being forced to
e pay for this promotion, he said.
g But he stressed that small