Text of Transit Bill
Passed by Congress
This is the text of the
Capital Transit bill drafted
yesterday in a House-Senate
conference, approved before
adjournment by both homes
of Congress and sent to the
White House:
Be It enacted by the Senate
and House of Representatives of
the United States of America in
Congress assembled,
‘ That it is hereby declared that
the business of mass transporta
tion of persons for hire ,in the
District of Columbia is clothed
with a public interest and Is es
sential to the proper function
ing of the Government of the
United States and the Govern
ment of the District of Colum
bia. The continuous, uninter
rupted, and proper functioning
of such business in the District
of Columbia is hereby declared
to be essential to the welfare,
health and safety of the public,
including the civilian and mil
itary personnel of the Govern
ment of the United States lo
cated in the District of Columbia
and the Metropolitan Area of
Washington. It is declared to be
necessary in the public interest
to repeal the franchise of the
Capital Transit Co. and grant
the Commissioners of the Dis
trict of Columbia the authority
hereinafter set forth.
Franchise Repealer
~ Sec. 2. The joint resolution
entitled “Joint resolution to
authorize the merger of street
railway corporations operating
in the District of Columbia, and
for other purposes,” approved
January 14, 1933 (47 Stat. 752),
as amended, is amended by
adding at the end thereof the
following section:
"Sec. 14. The charter and all
rights of franchise of the Cap
ital Transit Co. created by this
resolution are hereby repealed
in accordance with the terms of
section 13 hereof.”
Sec. 3. (a) Hie Commissioners
of the District of Columbia may
authorize (including authoriza
tion under such contractual
agreements as may be neces
sary) such public transporta
tion, during the year following
the date of enactment of this
Act, within the District of
Columbia as may be necessary
for the convenience of the
public. Such transportation shall
be furnished to the public at
such rates and under such terms
and regulations as may be
recommended by the Public
Utilities Commission, and ap
proved by the Commissioners of
the District of Columbia, for the
purpose of providing a satis
factory system of public trans
portation within the District of
Columbia during the year fol
lowing the date of the enact
ment of this act.
Pay Revisions
(b) Any contract entered into
under the authority of subsec
tion (a) of this section with the
Capital Transit Co. shall pro
vide:
(1) That salaries of officers
of the Capital Transit Co. in
effect on July 1, 1955, will be
continued in effect during the
term of said contract;
(2) That in the event in
creased wages and benefits are
accorded employes under such
contract, appropriate increases
may also be granted salaried
employes other than company
Hyde Hopeful
On Transit Pact
The charter of the Capital
Transit Co. does not expire for
a year, at the same time as the
franchise, in the opinion of
Representative Hyde, Republican
of Maryland. He was one of the
conferees that wrote the final
legislation.
Mr. Hyde said today:
“We hope the next step a that
the transit company can settle
with the union so they can con
tinue for the balance of the
year.
"Os course If they can’t, the
District Commissioners can con
tract with somebody else for
transportation or can enter into
a contract with the Capitol
Transi Co., under which, of
course, the District Commission
ers can make a settlement with
the union.
“My recollection is there is a
provision in the legislation
whereby the commissioners can
contract with the Capital Trans
it Co. and any agreement made
with the union is subject to the
approval of the commissioners.
"I would think the commis
sioners could work out an agree
ment with the union. Union
spokesmen in testimony before
our House District Committee
said they could work out a satis
factory settlement with the com
missioners.
“If they can’t, and this is part
of the reason for the bill as it
came out, the commissioners are
free to contract with somebody
else for transportation in this
Interim period of a year. We
gave the commissioners as much
authority as we could to do
something about giving the pub
lic some transportation.”
jl DOWNTOWN 1
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i; 10th 6£ Sts. N.W. |
officers, subject to the approval
of the Commissioners of the Dis
trict of Columbia; and
(3) That if, at the end of the
period of said contract, the oper.
sting revenues derived by such
company from the operation of
e its properties in utility service
f for the convenience of the public
j have not been sufficient to meet
the cost of operation during the
* period of such contract, lnclud
_ ing but not limited to deprecia
j tion and all taxes, but not in
j eluding any return on invest
. ment, the District of Columbia
. shall pay Capital Transit Com
e pany the amount qt such defl
. ciency:
Provided, That such deficiency
* during said period shall be de
' termined in accordance with the
: accounting practices now pre-
J scribed by the Public Utilities
Commission, but the said defl
;• ciency shall not include any
* allowance for amortization of
* such company’s property for
‘ obsolescence or loss to such
' company by reason of the ter-
J mlnatlon of its franchise:
Provided further. That such
[ deficiency shall not exceed the
g increased labor costs approved
I by the Commissioners for the
1 contract period and that this
' deficiency shall be further re
' duced by the increased income
derived by such company from
any fare increase which may be
i granted by the Public Utilities
> Commission as a direct offset to
. the Increased labor costs.
Maryland Provisions
, Sec. 4. The Commissioners of
1 the District of Columbia ’may
’ with the approval of the Public
, Service Commission of the State
' of Maryland exercise any of the
powers granted in this act within
1 the portion of the State of
’ Maryland which is provided with
! public transportation by the
! Capital Transit Co. (including
subsidiaries'.
Sec. 5. Nothing In this act
1 shall affect the right of Capital
r Transit Co. or its successors in
' interest, to continue railroad
1 service to the Potomac Electric
* Power Co as currently per
’ formed by the East Washington
l Railway Co., nor shall it affect
1 its present rights with relation
' thereto.
Sec. 4. There are hereby
j authorized to be appropriated,
1 out of any money in the Treas
; ury to the credit of the District
| of Columbia not otherwise ap
' propriated, such amounts as may
! be necessary, if any, over and
■ above the revenues received from
[ operations herein provided for,
! to carry out the provisions of
’ this act.
| Track Removal
Sec. 7. Effective as of the date
■ of the termination of the char
ter and all rights of franchise of
the Capita] Transit Co. as pro
vided for in Section 2 of this act,
' such company, shall upon the
' order of the Commissioners of
! the District of Columbia, remove
' from the streets and highways
at its own expense of all its prop
-1 erties and facilities and shall
1 thereupon restore such streets
s and highways in accordance with
* the provisions of the Act of July
1, 1941 (55 Btat. 499).
Sec. t. If any provision con
■ tained in this act be declared
1 invalid, such invalidity shall not
! be deemed to affect or impair
I the validity of the remainder or
r of any part of this act.
A-BLAST CLOUDS
ENCIRCLE EARTH ,
PHYSICIST HOLDS
MELBOURNE, Australia
(&)•■—A Melbourne physicist
said yesterday radioactive
clouds from an atomic test
explosion In Nevada last
March 14 may still be cir
cling the earth.
Dr. V. D. Hopper, senior
lecturer of Melbourne Uni
versity's physics depart
ment, told a news confer
ence that radioactive clouds
were circling the earth as
low as 20.000 feet.
He said that four differ
ent consignments of special
photographic film sensitive
to radioactivity had been
ruined when flown through
the clouds en route from
London to Melbourne.
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TRANSIT WORD —Representative Hyde, Republican of
Maryland, gives newsmen details of House action on the
transit strike.—Star Staff Photo.
Gib Fare Pool Brings
Domestic Help to Homes
Housewives deprived of do-i
mestic help because they couldn't
afford to pay cab fares are now
figuring out away to beat the
transit strike.
Fred Hetzel, director of the.
District office of the United 1
Btate* Employment Service, said
today he has increasing reports
that housewives are getting to
gether on this system:
A group of five or more house
wives in the same neighborhood!
decide to get household helpers!
the same day. They call the,
USES with an order for
five day-workers. Then one of
them comes into the office to
pick up the five, or they pool
the cab fare between them.
“We hope this idea spreads,”
Mr. Hetzel said. “The household
helpers need the money most
and can least afford to pay cab
fares.”*
Fewer Placed in July
Household help is the group
hit hardest by the transit strike,
according to the latest USES
figures. Only 346 household
workers were placed by the
USES in July, compared with
655 in June.
Mr. Hetzel reported that
placements by the USES in all
types of jobs showed a 29 per
cent decrease in July. A total
of 2,451 workers were placed in
July compared to 3,464 in June.
He said this decrease came at
a time when employment had
been steadily rising. USES still
is getting the orders, he said,
but they can't be filled for lack
of workers with enough funds
to pay their own transportation.
Before the strike, he said,
when USES put out a call for
100 workers, between 80 and 85
would show up the next day.
Now a call for 100 workers
brings a response from 20 to 25
Job-hunters.
He also noted that, before the
strike a large group of job
hunters—particularly domestics
—gathered outside the door of
USES before it opened in the
morning. Now, he said, only a
few show up because mast of
them haven't the cab fare to
get to the USES offices.
Some Split Trip
Aside from the group-help
idea spreading among the house
wives. he said, the only other
hopeful note is that some em
ployers are now willing to pav
cab fare one v/ay if the pros
pective employe will pay it the
other.
Mr. Hetzel said overall reports
indicate the hotels and restau
rants are beginning to lay off
workers—not only because they
can't afford to pay their trans
portation but also because busi
ness is dropping off. He said
i employers in the hotel and res
taurant fields have told USES
they gave their employes vaca
tions at the start of the strike
but have since laid some of them
'off because business is bad.
' In addition to household help,
Mr. Hetzel gave these compara
tive figures for job placements
by the USES in June and July:
| Hotels and restaurants, 643 in
'June, 552 in July; industrial, in
cluding laundries and other serv
ice Industries. 153 in June, 98
in July; common laborers. 630
in June, 494 m July; skilled
trades, 330 in June, 324 in July;
professional, 209 in June, 130 in
July: clerical and sales per
sonnel, 844 in June. 503 in July.
Israel Quits Fair
JERUSALEM, Aug 3 (/P).—ls
rael has canceled its participa
tion in the International Trade
Fair next month at Plovdiv, Bul
garia The action follows Israel's
protest to Bulgaria over the
shooting down of an Israeli air
liner over Bulgarian territory;
last Wednesday with the loss
of 58 lives.
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Receivership Action
Against CTC Studied
By WILLIAM A. MBLLEN
Is it legal for the District
Commissioners to secure a court
receivership under the circum
stances existing in the Capital
Transit Co. case?
That is a question that is re
ceiving the close attention of
lawyers, studying the compli
cated legal problems that have
arisen in the wake of the new
legislation.
Congress failed to write into
the new legislation a clear-cut
provision that the District Com
missioners could legally seek a
receivership for Capital Transit.
But Senator Allott, Republican
of Colorado, in a July 30 Senate
speech when the legislation was
under consideration, pointed up
the advisability of doing just
that.
No Clear-Cut Precedent
There seems to be no well
defined precedent for a solvent
company, such as Capital Tran
sit, being forced into a receiver
ship by the District Commis
sioners. But if the Commis
sioners are able to convince the
courts that this should be done,
the question arises as to the
legal status of the company
then.
Under the Federal Constitu
tion, private property cannot
be taken for public usb without
just compensation. The Capital
Transit Co. would presumably
continue to hold the legal title
to its property—the streetcars,
buses, office building, shops and
other eouipment.
One highly placed and re
sponsible lawyer here, who de
clined to be quoted by name,
said generally a receivership is
normally predicted here on a
bad financial condition, under
.the District law. But no one has
seriously challenged the finan
icial ability of the Capital Tran
sit Co. to pay its bills.
Senator Allott said today:
“It seems to me that if the
District Commissioners cannot i
enter into a satisfactory agree
ment immediately, as provided
in the bill, not only with the
Capital Transit Co., but with
the union, that they have an
obligation which can not be
voided, to go into court im
mediately and ask for a receiver.
This is in accord with state
ments I have discussed previous
ly in committee hearings and on
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jthe floor of the Senate.”
Benator Allott said as he sees
it, the District Commissioners
would have to rely on the broad
general principles of equity with
regard to receivership, in ask
ing the court’s aid.
Senator Allott in his July 30
speech on the Senate floor said:
“Under an analysis of the Code
of the District of Columbia, it
may well be that the Commis
sioners may not have power to
ask for a receiver and obtain the
appointment of a receiver. Sev
eral points were suggested as to
how that might be done. One
was to allege that the Capital
Transit Co. is failing to conform
to its duties under the franchise.
Second, it might be said, and it
might be proved, thgfrthe Capital
Transit Co. was failing to live up
to its obligation to bargain in
good faith with the union. But
if the Commissioners do not have
the right in a court of equity or
in a court of law, then it is up
to the Congress of the United
States to provide such a law. so
that when a strike in a public
utility, such as a gas, electric,
or, as in this, case, a transporta
tion company paralyzes a com
munity and wreaks irrevocable
damage upon that community,
the Congress of the United
States will have provided laws
for receivership, or even injunc
tion, so that relief may be given
to those who suffer the greatest,
and these are the average people
on the street.
Less Expensive Way
"That would be a much clean
er and much better and much
less expensive way, as compared
with the method provided in
this bill, because then the Com
missioners could have token
over; and if there had been a
necessity to provide them with i
additional grounds for the ap
pointment of a receiver, Con
giess could have done so by add
ing one or two clauses, including
a simple clause revoking the|
franchise and providing that!
that would be one of the grounds :
for the appointment of a re
ceiver. Then, when a receiver
was appointed the contract they
made with the union would have
been approved by the court, and
damages would have been min
imized all along the line. That
would have 'been a complete and
much better, cleaner, cheaper
and simpler operation, as com-
THE EVENING STAR. Washington, D. C. ••
wzpwxspst. scgcst s, teas
oared with the one under the
bill as reported.”
In some cases the courts will
appoint a receiver where it is
shown there is an irreconcilable
conflict going on concerning the
corporation involved. As some
lawyers here see it, it may be
possible to secure a receivership
for the Capital Transit Co. if
that course is decided on by the
District Commissioners, on the
ground the company is not fur
nishing the proper service to the
community.
Must Produce Evidence
But, the lawyers point out, it
would be incumbent upon the
Commissioners to produce evi
dence that would satisfy the
court that the company had
failed to live up to its
tions. Whether the capital
Transit Co. has been operating
efficiently, before the strike,
would likely become one of the
principal points at issue, lawyers
said. A receivership is indicat
ed in some cases, lawyers said,
where it is necessary to protect
the Interests involved.
One of the prime questions at
stake is whether Capital Tran
sit's charter is revoked imme
diately upon President Eisen
hower’s signing the new legis
lation involving the company.
If it is, then there seems to
be no proper legal entity with
which the District Commission
ers could deal, some observers
say.
Disagree on Franchise
If it is not, then there would
seem to be no point in putting
the company into a receivership,
if that is possible now. For, in
the ordinary course of business,
that could be done, if it is found
legally feasible, any time with
in the coming year, when the
'franchise (the right to operate
over the city streets with street
cars and buses* dies under the
law, some lawyers said.
' Some take the view that
charter and franchise both ex
pire a year from now. Others
disagree.
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