Evening star., 1961-07-19
Chalk Insists
Financial Aid
Was Promised
BY GRACE BASSETT
Star Staff Writer


today.
o. Roy Chalk, company pres
ldent, in a strong statement.
that Congress hac
promised in his franchise the
kind of subsidy now sought.
It already has been granted, ir
one form or another, in almos;
every other comparable Ameri-
can city, he testified.
Mr.. Chalk was flanked BY
his vice president, James II.
Flanagan, and Attorney Harvey
Spear, indicating unusual com.
pany interest.
The congressional franchise
said Congress would maintain
a continuing interest in the
welfare of the corporation anc
its investors" and that the
company should have the "op-
portunity to earn a return OF
at least 6.5 per cent. :"
Two Bills Pending
Pending are two bills requir-
ing the District to give D. &c.
Transit the difference De-
tween the 10-cent fare foi
school children and the IS.
cent adult cash fare. One meas.
ure would make payments
available only if the con1pany's
rate of return was less than
6.5 per cent.
Harold A. Kertz, vice chair
man Of the District Public
Utilities Commission, main
tained that a 4.9 per cent
rate of return, found by his
commission to be adequate,
should be substituted for the
6.5 per cent figure.
He also asked that the
P. U. c. calculate the amount
of subsidy, since transporta-
tion for school children con-
Germs only District, not Met
ropolitan Area, taxpayers. The
bills would give the newly
created Washington Metro.
politan Transit Commission
authority to certify the sub
sidy amount to the District
Commissioners.
One Member DisSentS
Albert L. Sklar and Delmer
Ison of the metropolitan COM
mission were in substantial
agreement with Mr.. Kertz. But
H. Lester Hooker, one of the
three members of the area
commission, wrote a dissenting
letter, agreeing substantially
with the company that Con-
gress had guaranteed D. C.
Transit an opportunity to earn
6.5 per cent.
Any language in a law con-
tradicting the SIS per cent
figure would be a breach OF
the franchise and a predeter-
mination Of a legal ISSUE In
the view of Mr.. Spear, the D. c
Transit attorney.
School children make ap-
proximately So million trips or
D. C. Transit annually. Com.
pany officials testified the Dis
trict subsidy would amount tc
about $786,060 each year, under
the bill without the rate-of'
return limit.
Mr.. Kertz said the maximum
subsidy would be $533,000 an.
nually if the 49, per cent
rate -of-return limit were sub.
stituted.
City and area officials indi.
Gated they accepted the prin-
ciple on which the subsidy bill,
were based--that all taxpayers
rather than transit riders
should bear the cost of trans.
porting children to and from
school.
Civic Leaders Testify
The bills would result in ex'
cessive profits to D. C. Tran
sit, according to Edward C
Wilcox, chairman of the Pub
lie Utilities Committee of thI
Federation of Citizens Asso'
Citations, and Alfred S. Trask
of the Friendship Citizens AS
sociation. r.
DR.. C. Stanley Lowell, editol
of Church and State Maga'
zine and associate director O
ProtestantS and Other Ameri
cans United for Separation q
Church and State, said rebates
for private school pupils woult
violate the speration of church
and state.
"The Government canno
assume financial responsibilit,
for the transportation of citi
zens for private purposes. DR.
Lowell contended. "Particu
larly is this the case wher'
the purposes to be served b!
such transportation ars tn,
purposes of religion. The cos
of transporting persons t.
church is not chargeable Il
Government, nor is the cost o
transportation of persons Il
schools which exist to indoc'
trinate in the beliefs Of
church.