Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-03-10
Riders Counsel
Fights Transit
Firms Claims
BY DAN GOTTLIEB
Star staff Writer


for a nickel refund pending
outcome Of an appeal by the
company to the United States
Supreme Court Of its upset
1860 fare increase, three law
yers proposed yesterday to the
United States Court Of APP
peals.
They also contested the
company's claim last week
that an immediate rollback Of
the fare would seriously jeop-
ardize" its ability to provide
adequate service" and raise q
serious question as to its abil-
ity to remain in business" /
The lawyers, who have wonI
a 5-4 decision from the court
of appeals upsetting the COM
pany's 1860 fare increase GO
to Is cents in cash fare), are
fighting to roll back the fare
Immediately to 20 cents. The
company continues to charge
the higher fare under a SUISSE
quent 1861 fare order of the
District Public Utilities Com
mission which left the 1860
fares undiStllrbed
Supreme Court Appeal
The company asked the APP
peals court last week to stay
(stop) all further action in the
fare dispute until the Supreme
Court disposes of its appeal.
The three lawyers, represent
ing the transit riders interest,
agreed yesterday to delay the
immediate fare cut, but said
that the court should require
at a minimum" that:
/. Transit pay into a court
administered fund an amount
equal to one-fifth Of the cash
fares it collects while the COM
pany attempts its Supreme
Court appeal.
2. Transit tissue to each
passenger paying a 25-cent
} cash fare a receipt which would
be redeemable If their victory
in the Appeals Court is not
overturned and a rollback Is
ordered.
! while the issuance Of re-
ceipts will not offer protection
to transients and visitors who
ride Transit" their written
court statement said, lit will
provide the bulk Of Transit's
patrons with the means of re-
ceiving individual restitution Of
unlawful fares"
In addition, the lawyers
asked that the stay of proceed
ings in the lower courts not
apply to preliminary steps to
set up the transit riders fund
ordered in the Appeals Court
Judgment Of February 81. This
fund will amount to an esti-
mated 81 million and must be
used for such purposes as hold
ing off future fare increases or
ordering fare reductions.
Fund Of Excess NickeIs
The fund is to be composed
of all excess nickels from cash
fare collected between March
l6, 1860. the date of the in
crease to Is cents, and January
IS, 1861, the date the PUG de-
MED Transit a further increase,
but, in effect, gave new legal
authorization for a ascent
fare.
In another paper filed with
the court yesterday. the lawyers
replied to Transit's arguments
on the merits of an immediate
fare roll back.
The company's claims of fl
nancial difficulties which would
result from a fare cut borders
on the irresponsible" they said.
Citing an exhibit submitted by
the company in its current case
for a fare increase before the
Washington Metropolitan Area
Transit Commission, they said
that Transit earned about SIS
million in the year ending last
August 81.
School Fare Subsidy
Furthermore, they said the
company:
/. Is entitled TO a maximum
school subsidy Of about $3.50, 900
II its earnings fall below the
fair return authorized.
2. Paid its established quar-
terly dividend" OF $l25. 900 In
the last two quarters OF 1862.
3. Maintains approximately
5000. 900 Of its cash In dormant,
non-interest bearing New York
bank accounts.
Should financial disaster
remotely threaten II, the COM
pany is free 10 -. ask for APP
propriate relief" "a fare in
crease) from the Transit Com
mission. they added.
The lawyers who filed yes
Iterday's statements are Leonard
IN. Bebchick and Leonard s.
Goodman, acting as counsel for
themselves as the appellants in
the 1860 case. and Harold Lew