Evening star. [volume] (Washington, D.C.) 1854-1972, 1959-06-08
Sightseeing Bus Bill
Legality Queried
Morse Injects
Legal Opinion
Into Argument
BY GRACE BASSETT
star stan Writer


Senator Morse. Democrat Of
Oregon, today released a legal
opinion charging that proposed
legislation to separate the D. C.
Transit Systems sightseeing
and transportation oper-
atoms is unconstitutional.
The opinion was written by
James p. Radigan. jr., senior
specialist in American public
law at the Library Of Congress.
Senator Morse. obviously Inn
pressed by Mr.. Radigan's argu-
ment, asked sponsors Of the
legislation at his Senate SUBJ
committee hearing this morn
ing to answer the constitution
atty question.
This new argument REIN
forced opposition of the Dis
trict Commissioners and the
Public Utilities Commission to
the bill proposed to halt D. c.
Transit's expansion in the
sightseeing field.
Answer Promised
Proponents of the bill-Dem-
ocratic Senators O'Mahoney Of
Wyoming and Kefauver Of
Tennessee - and officials Of
charter and sightseeing COM
panies promised to file opinions
after they had a chance to
study the contention Of Mr..
Radigan.
The bill was introduced be-
cause Congress granted d. c.
Transit the right. In a 1855
franchise, to engage in sight
seeing as well as mass trans.
portation. Since then, D. c.
Transit has expanded sight
seeing activities carried on only
a small scale by its predecessor.
Capital Transit Co.
The franchise the effect of q
contract. according to Mr.. Rad
igan.
He said the rights granted
by Congress to engage in mass
transportation and sightseeing
are property rights. And prop
erty rights cannot be Invested
by subsequent legislation. he
commended.
without Due Process"
The pending bill prohibits
completely the use Of the same
assets or the same personnel in
two authorized functions mass
transportation and sightseeing)
legislatively granted by the
Congress-" Mr.. Radigan wrote.
He maintained that to ex-
tend the prohibition this far
would amount to a taking Of
the property of D. c. Transit.
Enactment would amount to
impairment of a contract and
deprivation of a contract with
out due process of the law, ac-
cording to the opinion.
The District Commissioners
oppose the bill on the ground
that 1t fails to make clear
the franchise exempted
sightseeing operations Of D. C.
Transit from taxes. Taking am
other approach. Public Utilities
Commissioner Harold Kertz
warned that deprivation of the
systems sightseeing right might
force up mass transit fares
the public.
d. c. Transit was promised
sightseeing rights not only by
its franchise but by an Inter-
state Commerce Commission
certificate, which cannot be al
tered, Mr.. Kertz cohtended.
Antitrust Stand Taken
But Senators O'Mahoney and
Kefauver insisted that use Of
D. C. Transit mass Transports
ton receipts for sightseeing is
q violation of antitrust laws.
The engaging by any transit
system in any outside business
Is very damaging to other ex-
listing buslines, even without
tax BENEFITS" testified Barrett
Elkins, counsel for the Grey.
hound Line. with tax bene-
Ats Of D. C. Transit. the effects
are catastrophe" he said.
City officials have ruled that
the franchise exempts sightsee-
Ing as well as mass transports.
ton from certain taxes. How.
ever, D. c. Transit's president.
o. Roy Chalk. has been pay
ing voluntarily city taxes on
his siphtsaeinR onerations.