Evening star. [volume] (Washington, D.C.) 1854-1972, 1959-06-02
Chalk Denies Gain
On Sightseeing Tax
Attacks Bills
To Split Bus
Operations
BY JOHN A. GILES
star Stan Writer


vantage" in operating its
charter and sightseeing busi-
ness as his competitors have
alleged.
Furthermore. in commenting
on congressional bills spon-
sored by friends of small BUSH
ness firms In the sightseeing
business. he said today that he
and his associates respect the
rights Of all small business
men,"
Mr.. Chalk. along with q
battery Of high officials Of the
transportation firm. appeared
before the House Interstate and
Foreign Commerce Committee.
He went on to say that the
bills before the committee to
divorce D. c. Transit's charter
and sightseeing operations
from its mass transportation
services are not justified by
the facts.
The only tax advantage that
could possibly accrue to the
company, Mr.. Chalk said, was
the fuel tax exemption pro-
vided under its franchise, but
the concern has voluntarily
paid those levies.
I'VE want no tax advantage
and have voluntarily given 1t
up" he told the committee.
But we do object strongly to
any amendment to our fran
chise.
500 Buses Used
"As I have said we are willing
TO waive the tax advantage
and have been doing just that"
The financier then went on
TO urge Congressman to help
small business 'just as you
have helped D. c. Transit"
D. C. Transit operates some
BOO buses and upwards of 500
Of them sometimes are used in
charter and sightseeing serv-
Ice. Mr.. Chalk reported.
He explained that such use
In "off-beat hours" is a part
Of the overall operation and
that the costs are not sepa-
rated by auditors.
Questioned by Chairman
Harris. Democrat of Arkansas,
about the company's franchise,
Mr.. Chalk replied heatedly:
THE District Commissioners
presented 1t to mel did not
write It," Mr.. Harris then asked
him about reported losses in
the charter and sightseeing OPP
erations Of the firm.
I'VE have had no loss in
charter or sightseeing opera
ions in recent months, nor do
We have q loss today" Mr..
Chalk replied.
Hits p. u. C. Computation
He then went on to attack
what he called the District
Public Utilities Commissions
method Of computation Of the
irm's finances. saying that it
s not q business approach.
He said D. c. Transit charges
EQUAL prices for its charter
md sightseeing services all
,hough "laborwise we are "a
ser cent higher" than some of
he others.
The sightseeing services pay
commissions to hotels for BUSH
less. and Mr.. Chalk reported
hat Gray Line has Q far
greater number of hotels linked
lp than his concern.
Attacked on Monopoly"
The D. c. Transit officials
will testify before the commits
zee again tomorrow. but, mean
while, the firm came in for
mother attack by a Congress
member.
Representative Morris, DEM
'crat Of New Mexico, charged
hat the concern has utilized
he monopoly power Of its
mass transportation system to
compete with businessmen in
,harter. sightseeing, limousine,
jovernment-contract services.
'outes to the airports and SUBJ
lrban routes" =
He estimated that the tran.
1T firm has been operating
,hese sideline ventures "at a
substantial loss. estimated at
80. 600" .
Mr.. Chalk challenged any
'uch losses and said that he
md his associates had been
'revitalizing a very sick con.
,ern."
Rival Cites Losses"
Another witness, D. j. Hy.
nan, counsel for WM6SA Tran.
'it, also charged that D. c.
Transit was marking of losses
against its mass transporta.
ion operations.
He said his firm could not
lfford to compete with D. c.
Transit and that one-third OF
is business Is in charter
service.
Earlier, James H. Flanagan.
vice president and general
Of the transit COM
pany, admitted Congress has
relieved the company from liza
oility for "the Anticipated gross
receipts tax which formerly
But, he said other bus firms
mad paid q 1-cent tax per mile
Tor operations within the Dis
,rict and that Congress has
now relieved them of this levy.
Therefore. we are all even
N that reSDect. SO far as exc