Evening star. [volume], July 06, 1955, Page A-7 **, Image 7

About Evening star. [volume] (Washington, D.C.) 1854-1972

Image provided by: Library of Congress, Washington, DC

                
Agency Considers Asking
Court to Ban Dividends
The possibility that the Dis- *
trict Public Utilities Commission
may ask the courts to block
further dividend payments by
the Capital Transit Co. was
raised today, as the commission
met with the District Commis
sioners at the height of the
transit strike.
Yesterday, after a meeting
with Capital Transit officials.
Chairman George E. C. Hayes
of the utilities commission said
that “in a sense, we are reopen
ing the financial investigation of
the company.”
The commission investigation
—and suit against the company
to block payment of dividends
and the payoff of bonds—ended
tentatively last August with a
"memorandum of understand
ing” which prevented the firm
from asking for any rate in
crease until last January.
Replacement Issue Raised
Yesterday. Commissioner Rob-,
ert M. Weston raised an issue:
upon which the commission re-!
lied last year in its suit against;
tire company: Whether the com
pany, in paying out dividends,
has maintained adequate cash
on hand to meet the costs of
maintainence and replacement j
of worn-out equipment.
President Asks
Effort on Strike
Continued From First Page
have not received proper credit,
he said, and the public owes
them a vote of thanks.”
Meeting for nearly an hour,
the House District Committee
announced its decision to allow
officials a "reasonable” time to
settle the strike.
If necessary, the Commission
ers then will be asked to aid in
drawing up suitable legislation,
Chairman McMillan said.
Mr. McMillan agreed with
Representative Broyhill, Repub
lican, of Virginia, sponsor of the
company seizure action, that
something was needed to get the
wheels rolling again.
Some consideration was given
to the possibility of a joint
meeting of the Senate and House
District Committees if the legis
lation becomes necessary.
Mr. Broyhill said he saw noth
ing incompatible between Sen
ator Morse’s bill to lift the fran
chise and his own to seize the
company temporarily. He said
the two ideas might be welded
Into one bill .
Mr. Broyhill said some phases
of his own bill were considered
"too lenient” at today’s meeting.
He reminded his colleagues that
the company would be penalized
15 per cent of its net earnings,
to go into the United States
Treasury.
Traffic Flow Praised
Chairman McMillan said he
was impressed by the way the
city has managed through the
strike crisis.
"I have never seen traffic work
so well,” he said. “Since the
strike I have been able to get to
my office in less time than ever
before. If this keeps up it might
give the transit company and the
workers both an idea they don't
need transportation lines as bad
as it was thought. It might help
to force an early settlement."
Tomorrow's hearing on the
bill to revoke Capital Transit's
franchise will begin at 10:30 a.m.
in the Senate District Committee
room and is open to the public.
Presiding will be Chairman
McNamara whose fellow com-,
mitteemen are Senators Morsi
and Case, Republican, of New
Jersey, all outspoken critics of
the company.
Company officials were advised
of the hearing but said they had
no intention of attending unless
they were “asked to.”
Notices also were sent out to
the union, the District Commis
sioners, the Public Utilities Com
mission and the citizens and
civic associations.
Senator McNamara said the
legislators and staff agreed to ask
the FBl’s help in serving Mr.
Wolfson with a "forthwith” sub
poena Issued after United States
marshals failed to find the
financier with earlier subpoenas
in Los Angeles. '
New Subpoenas Out
William P. Gulledge. the Sen
ate subcommittee's chief coun
sel, said the new subpoenas were;
turned over to Senate Sergeant-;
at-Arms Joseph C. Duke, who
had given assurance he would
ask FBI assistance.
The "forthwith” subpoenas
command Mr. Wolfson to ap
pear before the committee any
time he is served. They were
signed last evening, but held up
until today to determine whether
Mr. Wolfson would respond to
the earlier call.
The financier was reported as
checking out from a Los Angeles
hotel shortly after the first
subpoenas were issued. United
States Marshal Robert Ware of
the Southern California district
said publicity gave him “an
8-hour jump on process servers.”
Routine Work for FBI
There is no criminal tinge to
the forthwith subpoena and no
contempt action attaches before
the serving of a subpoena, Mr.
Gulledge said. It is not unusual
for the FBI to assist in such
searches.
Senator Morse, a member of
the Senate subcommittee and
author of the franchise-lifting
bill, has been the principal critic
of Mr. Wolfson and the com
pany.
Yesterday he lashed out at
them again. He called for Mr.l
Wolfson to "come .put of hiding”
and said the company had made
it clear that its motto was “our
profits first and the public be
damned.”
He said even a strike settle
ment would not cause him to
drop the proposal to cancel the
company’s franchise.
In a statement given at this
morning's hearing Representative
T The disclosures followed an
hour-long meeting between the
members of the Utilities Com
mission and officials of the com
pany, including President J. A.
B. Broadwater, Vice President E.
C. Giddinga and Attorneys Ed
mund L. Jones and P. Gloyd
Await.
Outside Check Urged
At the session. Mr. Hayes said,
the company officials suggested
an investigation by an outside
firm to determine the accuracy
of a commission allegation that
: the company is short $2.4 mil
lion in its depreciation account.
It was this allegation upon which
the commission based most of
its previous attempt to tie up
the company’s dividends.
The next dividend—of 30 cents
a share—will come up for ap
proval at the next board of
directors’ meeting in August.
At 30 cents a share, the quar
terly dividend equals $1.20 a
share for each 960.000 shares of
'the firm’s stock, or $288,000.
Meanwhile, according to com
mission sources, the company’s
cash on hand ($2,1 A,OOO as of
April 3) was dropping at the
irate of $12,000 a day during the
strike.
Broyhill said the seizure bill
“offers the only method .by
which we can hope to remove
the transportation chaos caused
by the strike.”
He said the workers would
become District employes for the
duration of municipal operation
and could not strike against the
Government. Collective bargaln
; ing between the company and
' union could continue and em
ployes would lose none of their
; rights, he. added.
“This is not union busting,”
Mr. Broyhill defended his bill.
“It merely preserves the status
quo until agreement can be
" reached at the conference
1 table.”
The bill would provide for re
storing the company to manage
-1 ment once the strike was set
' tied. Employes who refused to
; work for the Government would
[ be liable to fines of S3OO and
' six-month jail terms.
DONOHUE
Continued From First Page
over week ends and was unable
to attend today’s meeting be
tween company officials and the
Commissioners.
Reached at his New York hotel
; last night Mr. Donohue declared:
"I have reached the conclusion
in my own mind that the pos
i sibility of a subsidy operation
I of Capital Transit should be
. very seriously considered."
The former Commissioner said
! that he is convinced that “in
, the long run the District would
i fee better off” Under a subsidy
operation of the Metropolitan
area’s biggest transit company.
Notes Patronage Decline
He pointed out that the num
! ber of people relying on mass
transit has been steadily de
: creasing since the war, here as
: well as in other large cities. He
> said that prosperity has enabled
' more citizens to use automobiles
: and taxicabs in preference to
■ buses and streetcars. He added
: that with this factor, there are
I not enough transit customers to
> pay the price necessary to run
the transit system at a profit.
! "And you just can’t get a fair
> return on your stockholders’ in
■ vestment with constantly de
! creasing patronage,” Mr. Dono
. hue said.
1 Mr. Donohue emphasized that
he was speaking in general terms
• of the Capital Transit operation.
r He pointed out that he has
f missed, due to the New York
trial, the last three monthly
• meetings of the director’s board,
i Consequently, he pointed out, he
s was not closely conversant with
the present union-management
) dispute.
In this connection, he added,
- he is readily available over the
f week ends “if anyone wants to
call me in on this thing.”
; Importance Emphasized
■. Renewing his general ap
. praisal of the transit situation,
s Mr. Donohue pointed out that
; public transportation is as im
s portant a necessity as sewer
and water service for a com
munity.
“The function of an efficient
■ public transportation system has
■ to be performed.” he said.
'; But lest that observation
•i would seem to be critical of the
) Wollson management of Capital
1 Transit, Mr. Donohue added:
| "I want to be the first to say
> that there isn’t a more efflci
■ ently run transit system in terms
■ of equipment, and service any
■ where. It is the best managed
• transit company in the country,
' bar none. I can see the differ
> ence simply by riding the New
York transit system.
>i Mr. Donohue said that one
s of the big questions involved in
t whether mass transit here should
j be subsidized is whether the non
’ transit user properly can be
i required to help foot the bill.
| He indicated strongly that he
felt non-riders should. One of
the big reasons for this, he
explained, is that a subsidy
operation would keep bringing
; passengers downtown to shop,
thereby helping to preserve
j business in the central areas.
i Hits Delay on Fares
Mr. Donohue incidentally
‘ chided past members of the
1 Utilities Commission for failing
f! to take prompt action on Capital
: Transit Company fare increase
■ petitions. He said he could not
see why the commission could
I ■ not either grant or deny the re
. I quested increase in speedy
’| fashion.
s "Why should the commission
■ have to be beaten over the head
: for a decision one way or the
other?” Mr. Donohue asked.
The CTC board member added
> a sympathetic word for the
s workers, who seek wage and
other benefits in their present
3 walkout.
e "I can understand union as-
mSrX:
\ wSBM
'i|gk* « p , ySsSREg I
RUSSIA RETURNS BORROWED NAVAL ITEMS
KIEL, GERMANY.—The Red Star and hammer and sickle emblem comes down
(top photo) as the Soviets officially return 13 lend-lease torpedo boats and one
submarine chaser to the United States. In the lower photo United States sail
ors raise the Stars and Stripes over the reclaimed ships.—AP Wirephoto.
TRANSIT STRIKERS LINE UP
FOR BACK PAY FROM COMPANY ,
Transit strikers lined up today for a week's pay.
Ttklay’s pay was for the week ending June 25. The 3.000
1 strikers are still due the money they earned from that date
until the strike started Friday.
A Capital Transit Co. spokesman said the next payday ■
would be a week from today. &
The weekly payroll exceeds $300,000, the spokesman said.
It was counted out to strikers by clerical employes not
on strike, he said.
The pay windows are all over town. Men were paid off
at their regular windows, except for employes of the Way
and Structures Division, who got theirs at the Central Ga- '
rage. 2112 Georgia avenue N.W.
Trade Board Asks Restored
Service While Settling Issues
The new directors of the
Washington Board of Trade,
holding their first meeting yes
terday, urged Capital Transit
Co. striking workers to return to
the job for at least 30 days, until
the issues can be resolved.
The board’s new president Ed
ward R. Carr, on behalf of him
self and the directors, made pub
lic this text of their position:
“The board of directors of the
Washington Board of Trade dis
cussed the transit strike in con
siderable detail this morning. No
recommendations for settling it
were made, though there was
agreement that its continuation
held serious implications for the
entire community. It was point
ed out that nobody is gaining
and everybody is suffering from
this strike, including labor, man
pirations to have pay commen
surate with transit employes
elsewhere. But you must con
sider where is the money com
ing from.”
District Commissioner Robert!
E. McLaughlin was chairman of!
the Public Utilities Commission
at* the time the transit firm
agreed to include public mem
bers on its board.
He said today that technically
the three board members are not
"public” members in the strict
sense of the word even though
they have closer ties with the
immunity than the Wolfson
associates serving on the board.
"The idea, as I see it, was to
get a more disinterested view
point on the board than existed
under the former setup,” the
Commissioner explained.
He indicated, however, that he
feels no question that the so
called public members owe first
allegiance to the company as
members of the board.
TRAFFIC
Continued From First Page
in the Twenty-first street and
Constitution avenue N.W. area,
keeping motorists away from the
baseball diamonds there.
It was predicted that the
lighter traffic would make it
even easier for the afternoon
shoppers to find parking space in
commercial garages. A Wash
ington Parking Association
spokesman said there was plenty
of space in the private lots and
garages yesterday afternoon.
He attributed the decline in
the afternoon business to the
heat plus the fact that prospec
tive shoppers feared they might
get caught in the afternoon traf
fic crush.
There were IB to 30 per cent
agement, business, the Federal
and District Governments and
the community generally.
“It is basically essential to all
concerned to get the mass trans
portation system back into
operation pending a settlement
of tide controversy through nor
mal collective bargaining. There
fore I subscribe to the recom
mendation of Mr. Francis Kane,
whom I have just succeeded As
a president, that all concerned
agree to provide transit opera
tions for a stated period of 30 or
i more days until the issues can
be resolved.
“Meanwhile, the Board of
Trade staff is continuing to as
i semble basic data which will
enable our committee to intelli
gently evaluate the results of the
, strike and the long range mass
-transit problem in Washington.”
more all-day parkers in the
commercial lots yesterday than
on a normal day, the spokesman
said.
AAA Traffic Log
j The AAA, from its survey
headquarters, got these reports
from its dozen radio-telephone
equipped cars stationed through
. out the cityi
6:50 a.m.—First traffic tieup
! developed on the South Capitol
! Street Bridge approaches.
7:10 a.m.—Cars backed up
from the bridge on Suitland
Parkway to Branch avenue.
, 7:31 a.m.—Free parking space
. on streetcar tracks filled.
I 7:39 a.m.—Traffic throughout
, the city increasing and moving
slowly. On Sixteenth street
. N. W„ traffic backed up from
, downtown to Arkansas avenue.
7:50 am.—Traffic backed up
(three blocks on North Capitol
street from Riggs road.
7:51 am.—Traffic snarl on
Columbia road between Four
teenth street and Sherman ave
i uue N.W.
I 7:52 am.—Some parking left
on the Mall.
, 7:55 a.m.—Traffic lined up al
most bumper to bumper from
Ward Cirele to Westmoreland
! Circle on Massachusetts avenue
; NW
1 7:56 am. Traffic "very
heavy” on Benning Road Bridge.
6:00 a.m—Cars backed up two
: miles from South Capitol Street
Bridfee. Free parking downtown
1 all taken
, 8:01 am.—Memorial Bridge
i traffic “very heavy.”
8:05 am.—Tieup at North
; Capitol street and Missouri ave
nue.
8:10 am—Traffic backed
; across Taft Bridge on Connect!-
Police Overtime
Wages Sought
Senator Mansfield, Democrat
of Montana, today introduced a
bill to provide for overtime pay
for police and firemen working
overtime in connection with the
transit strike.
Praising the men who are
working 12 hours a day to han
dle the traffic emergencies, re
sulting from the mass transpor
tation shutdown, Senator Mans
field voiced hope that Congress
would enact a measure providing
a 7.5 per cent increase in pay
of police and firemen.
His measure for overtime pay
would apply to members of the
Metropolitan, United States
Park and the White House Po
lice forces and the District Fire
Department for duty performed
on days oft when they were
called in during an emergency.
Now' there is no provision for
paying them.
Days Oft Cancelled
Senator Mansfield, a former
member of the Senate District
Committee, said the suspension
of bus and streetcar service has
affected almost every segment of
life in the city. “This strike is
most unfortunate, but one of the
hardest hit are Washington's
police," he said. “Since the be
ginning of the strike, July 1, the
whole force has been, on duty
12 hours a day and every day.
“All regular days off were can
celled. Men were called in from
vacation. Until the transit strike
is over these policemen will be
working overtime and extra
shifts without extra pay.
“The police have met the
traffic emergency with astonish
ing efficiency and resourceful
ness. They will continue to do
so and are to be commended for
their fine efforts.”
Seek Part-Time Jobs
He recalled that in January,
1953, police had to work extra
time due to the crime situation.
Piling up in that month 24,000
man-hours without pay.
With $3,900 the starting pay
for a policeman, he said, many
are forced to find part-time jobs
to meet family expenses and
many wives work to supplement
their husband’s pay.
“We in Washington have a
police force of which we can be
justly proud,” he said. “Last
year when the crime rate was
increasing nationally In our
large cities by 5 per cent, the
crime rate decreased 18 per cent
in the District. Approximate
figures for the fiscal year 1955
Indicate another 8 per cent drop
in the crime rate here.”
Under the Mansfield bill, the
overtime pay would be retro
active to July 1.
cut avenue N.W. to Woodley
road.
8:10 a.m.—Fourteenth Street
Bridge, virtually deserted until
now, getting heavier use.
8:15 a.m.—Tieup developed
at Sixteenth and Monroe streets
N.W.
8:15 a.m.—Traffic now heavy
on Fourteenth Street Bridge.
8:19 a.m.—Suitland Parkway
and South Capitol Btreet Bridge
clearing up.
8:29 am.—Traffic bumper to
bumper on Fourteenth Street
Bridge and moving 8 miles an
hour.
8:50 am.—Fourteenth Street
Bridge clear.
DowntownShoppersHove
No Complaint on Strike
Downtown Washington, tran
i sit strike and all. was a shoppers’
paradise yesterday—for those
there to enjoy tt.
The stores were uncrowded,
even those with sales on. There
1 were plenty of salespersons to
wait on customers, and even
i transportation was easy.
Shoppers reported no difficulty
! in finding parking space, either
1 in commercial lots and garages,
| or in those attached to the de
! partment stores. The parking
| lot operators said many of their
regular customers were taking
| advantage of the relaxation of
[ restrictions on meters and on
streetcar tracks.
| Nondrivers found, cabs easily
available in the nonrush hours.
Sample comments from shop
pers in downtown department
stores':
Mrs. Shirley Pell, 1360 Peabody
street N.W.: It’s easier. People
| who don’t think they can get
downtown or home again are
not taking any chances. There’s
plenty of salesgirls to wait on
you. But it must be bad. for:
i business.
Mrs. R. E. Erickson. 4634 Liv
ingston road S.E.: There aren’t
many people in the stores, and
apparently more salespeople. I
bet sales are going down.
Mrs. Mary E. Powell, Route 3.
Fairfax: Shopping’s easier, not
as many people as usual. I got
a cab to come downtown with
no trouble. I’ll go home with my
husband in his car.
Mrs. William Campbell, 5530
Parkland court. District Heights:
It’s certainly not crowded for a
Lewis O' Thos. Saltz ... 1409 G Street
For the First Time Anywhere!
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1409 G Street, N. W. Executive 1-4)43
Mies day; there's more people
to wait on you. I came In on
a W. M. & A. bus, it wasn’t
crowded at 10 am.
Mrs. Campbell’s son, Johnny.
3. sat beside her and munched
reflectively on a rubber knife.
He had no comment, but Mrs.
Campbell said: “He's been won
derful. It’s only the second time
I’ve had him downtown.” She
attributed Johnny’s good nature
this trip to the lack of pulling
and hauling by crowds.
Mrs. Bessie Robertson, 221
Ninth street S.W.: I can walk
up here, don't have to bother
1 with streetcars. The stores are
about the same as usual, but not
so crowded.
' -Mr*. Roy Gingrich, a visitor,
! from Seattle. Wash.: On a usual
' sales day you could hardly get
waited on. I got waited on to
’ day and then some. And I think
1 the stocks are better, less de
■ pleted. You have a better se
lection. I got a taxi; less
trouble than usual.
Mrs. Robert Bradshaw, 4016
Tennyson road. University Park.,
Md.: I drove down and parked In
the store garage with no trouble.
I’ve had no difficulty being
waited on.
Mrs. Phil Sanders, 6539 North
Capitol street, who came down
with her sister and nephew: We
had already arranged this shop
ping trip before the strike. The
strike didn’t make any difference.
We came down in a cab—l hope:
we can get one going back.
Mrs. Milton Glick, 6301 Six
teenth street N.W., and Mrs.
Manny Klein, 1415 Tuckerman'
A-7 **
THE EVENING OTAR
Washington, D. C
■tract N.W.: Wc came down la a
car pool and bad to watt a»
hour before the stores opened.
We plan to leave about 2:30 and
hope to get a cab. This is juet
a regular shopping trip* We got
tired of staying home.
Mra L. ▼. Urea, 309 Windsor
street. Silver Spring: I came
down with my husband when be
came to work. I_expect to go
back with him. The uncrowded
stores make for pleasant shop
ping.
Blrs. Aaron Riskin, 2216 West
view drive. Silver Spring: 1 ean
think better when it isn’t so
crowded. I often buy in Silver
Spring stores, but prefer the
choice in the larger stores when
I want to buy something like
lawn furniture. I parked ui a
parking lot and had no trouble
at all.
Miss Dorothy Lowe, a visitor
from Greenboro, N. C.: My
brother drove me down. I plan
to take a cab back, but if I get
in trouble, I’ll call my brother.
Mrs. Flora Graham, 1323
Cherry street. Falls Church: I
wore a fairly large hat to guard
against the sun and flat shoes
because I knew I’d be walking
from store to store. I usually
take a streetcar. I came in on
the bus from Virginia. The serv
ice in the stores has been good
and so is the air conditioning.
I like it when it’s less crowded.
Anonymous: I came down to
absorb the air conditioning I
called the store garage first to
make sure they had space avail
able, and had no trouble at aIL
I shopped Friday, too, and had
less trouble getting home than
I normally do. The strike doesn’t
bother me any.