Mr. CABELL. You wouldn't have any idea at the moment as to what that would amount to?

Mr. LAWSON. No, I do not.

Mr. CABELL. How much of your traffic-of course, I realize that you operate throughout Northern Virginia pretty well-how much of your total revenues would you say are generated by traffic to and from the District of Columbia?

Mr. LAWSON. About 65 percent.

Mr. CABELL. About 65 percent.

That is all, gentlemen. Thank you very much.
Mr. LAWSON. Thank you.

Mr. KAHN. Thank you very much.

Mr. CABELL. Is Mr. Miller still in the audience?

Mr. MILLER. Yes.

Mr. CABELL. Could I recall you for just a couple of very brief questions?

Mr. MILLER. Yes, sir.

Mr. CABELL. You are incorporated under the laws of Maryland, I would assume.

Mr. MILLER. Incorporated under the laws of Delaware.

Mr. CABELL. Of Delaware.

Mr. MILLER. Yes, sir.

TAXES PAID BY WMA COMPANY

Mr. CABELL. Are you paying any form of gross receipts tax to the State of Maryland?

Mr. MILLER. We pay property tax on the value of our equipment and stock on hand.

Mr. CABELL. Are you paying a gasoline tax to the State of Maryland? Mr. MILLER. Yes, sir. And also the District of Columbia.

Mr. CABELL. You are paying that to both?

Mr. MILLER. Yes, sir.

And we also pay a mileage tax to the District of Columbia which preceded the gasoline tax, which in our opinion, for the record, should have come off when we started paying the gasoline tax.

We also pay a tax, so-called, to D. C. Transit for certain streets we operate over now to take our people further into the District of Columbia.

Mr. CABELL. To whom do you pay an income tax?

Mr. MILLER. I haven't paid income tax for about 10 years, sir. I wish I could make that statement.

Mr. CABELL. You wish you could?

Mr. MILLER. Yes, sir.

Mr. CABELL. Those were the questions that I wanted to get into the record.

AB & W TAXES

If I may, I would like to recall Mr. Kahn for a question with reference to the gasoline tax to the State of Virginia.

Mr. LAWSON. We pay gasoline tax to the State of Virginia and the District of Columbia.

Mr. CABELL. I presume that you pay on an estimated total in other words, you couldn't meter every gallon of gas that you buy, could you? Is it just what you buy in the District?

Mr. LAWSON. We have a formula that is worked out.

Mr. CABELL. That is what I was getting at. You have a formula in order that it could be equitable?

Mr. LAWSON. In addition, we pay, just as Mr. Miller does, a mileage tax in the District of Columbia, and in the City of Alexandria, and in Arlington County. And we pay a mileage tax to the Federal Parks system for the use of Memorial Parkway and we pay a fee to operate through the National Airport. And we pay a rolling stock tax to the State of Virginia. We pay every kind of tax you can possibly think of somewhere.

Mr. CABELL. And I presume a license tax also?

Mr. LAWSON. Yes, and a tag tax.

Mr. CABELL. Do you pay the tax too?

Mr. MILLER. Yes, we do. We pay to go over the highways of Virginia. And we pay a tax to the States of Virginia, North Carolina, Vermont, Alabama, and Texas, if we go through them.

Mr. CABELL. Do you pay any vehicle tax as such in the District?

Mr. MILLER. Yes, in the District and Maryland.

Mr. CABELL. None of them have missed you?

Mr. MILLER. No, not yet.

Mr. CABELL. Thank you very much, gentlemen.

At this time, the Chair will call Mr. Gilbert Hahn, Chairman of the the City Council.

Welcome, Mr. Hahn.

STATEMENT OF GILBERT HAHN, CHAIRMAN, DISTRICT OF

COLUMBIA COUNCIL

Mr. HAHN. Thank you, Mr. Chairman, and Congressman Broyhill. My statement this morning is officially on behalf of the District of Columbia Government. And it is authorized and endorsed by the Department of Transportation and the Office of Management and Budget.

INTERIM PROPOSAL

Mr. Chairman and Members of the Committee, I am testifying here today for the Mayor and the Council, asking officially that we be allowed two weeks time to present a specific plan to deal with the current bus crisis. For that reason, we submit our statement as an interim proposal for action pending completion of the important and significant studies and congressional actions which are not under way. The President and the Secretary of Transportation have continually supported a balanced transportation system for the Washington Metropolitan Area as has the City Council, the Mayor, and the Council of Governments. This includes a viable and effective bus system with reasonable fares and good service, carefully integrated with the METRO System, and an ample highway system.

PRESENT BUS SERVICE

Currently the area is inadequately served by four private transit companies; D.C. Transit, Inc., WV&M, AB&W Transit Company, and WMA Transit Co., with D.C. Transit having 79 percent of total rider ship. During the last ten years, these private companies have faced seri

ous financial problems. Basic fares have gone from 25 cents in 1942 to 40 cents now. The D.C. Transit fare increase from 32 cents to 40 cents dropped ridership from 120,000,000 to about 100,000,000.

You heard Mr. Waterman say it had gone down from 135 million in 1967.

D.C. TRANSIT, INC.

D.C. Transit, Inc., has a 50 cent fare pending with the Washington Metropolitan Area Transit Commission. I estimate that, if the fare is approved, ridership will drop from about 100 million rides per year to 80 million rides or below per year.

Mr. CABELL. Will the gentleman yield?

Can you tell me the amount of additional revenue that D.C. Transit is requesting?

Mr. HAHN. By reason of that 10 cent fare increase?

Mr. CABELL. Yes.

Mr. HAHN. Their estimate shows, based upon an April 30, 1972 period that operating at the present fare structure, their losses would be around $312 million.

Mr. CABELL. So that is what they are trying to make up?

Mr. HAHN. Yes. They are then seeking an increase of 10 cents. They estimate a reduction in the ridership to 93 million. And this reduction, plus the fare increase, in their opinion, will give them $1 or $2 million profit.

Mr. CABELL. What I am trying to accumulate here is a total of what these requests would amount to, what size or magnitude of subsidy we are talking about. We have an estimate of $360 thousand from WMA. And we do not have an estimate from AB & W. And I wanted to see if I could arrive at some total.

Mr. HAHN. In my opinion, Mr. Chairman, operating at the present fare structure, you are talking about $3 to $4 million.

Mr. CABELL. As a minimum?

Mr. HAHN. Yes, sir.

Mr. CABELL. Call it $312 million.

We have already gotten up to $7 million, for your information.
Go ahead, sir. Pardon the interruption.

Mr. HAHN. And that opinion is based upon that exhibit that I referred to that is in the case showing a $32 million deficit, I believe, as the existing fare structure.

Thus, a fare increase at this time which is now pending before the Washington Metropolitan Transit Commission, would aggravate the siutation and further diminish ridership.

We should allow no further fare increases. Studies should assess the impact of an increase or a decrease. We are intrigued with the early results of the fare decrease in Atlanta which iresulted in a 20 percent ridership increase.

To maintain current fare level, there is a need for some form of financial assistance. However, this financial assistance should be viewed as an interim solution, because the more fundamental issue is that the existing four-bus companies which serve the Washington area must become integrated under a unified management, along with the METRO System. Consistent with the legislative history of WMATA, the existing bus systems should come under public ownership with either public or private management.

Therefore, we support the need for interim public assistance to avoid further fare incrases in the D. C. Transit System and will prepare and submit to you after the Easter recess a specific plan of action on how this may be accomplished.

AREA EFFORTS

The District, Virginia, and Maryland are taking actions througt the areas transit commissions, the Council of Governments, and by the Department of Transportation which will bear on our ultimate solutions. Specifically, some of these actions are as follows:

1. Because of the financial difficulties of several of the area bus companies actions are under way to acquire WVM in Virginia and WMA in Maryland. The NVTC has applied to UMTA for a capital grant to acquire the WVM Bus Company (exclusive of some properties) and some new buses. The management of WVM will be retained to operate the system; however, the new buses will be used to replace some of the existing equipment over 20 years old and to expand service where the demand exists. The NVTC has indicated that it will provide subsidies to maintain the fare at the present levels.

2. The Maryland Department of Transportation is also developing an application along the lines of the NVTC application to acquire the WMA Bus Company which is also experiencing financial difficulties. Subsidies would also be provided to service while maintaining fares at present levels.

3. Concurrently meetings have been held with UMTA, HUD, and COG in an attempt to satisfy all necessary requirements for area certification of two-thirds funding for transit programs at the earliest possible date. This is desirable if WMA and WV&M are to be purchased with minimum local funds.

4. Meanwhile, the Special Committee on Transit of COG passed a resolution on February 11 of this year, urging WMATC to deny any service cuts or fare increases for a period of time to allow public ownership or, if that is not possible, to allow governments to arrange some methods of financial assistance for the companies.

5. On February 14, the Board of Directors of COG, in response to the actions mentioned, unanimously passed a resolution supporting public acquisition of all four bus companies and an interim Federal, State, or local subsidy for public transit.

6. The Washington Metropolitan Council of Governments has applied to the Urban Mass Transportation Administration for a $4.0 million Technical Studies Grant. The work program under the grant would be performed by 12 transportation and planning agencies with the total effort being coordinated by COG. Among the transit agencies involved are WMATA, NVTC, WMATC, WSTC, and the Maryland Department of Transportation. One of the purposes of the technical study is to develop a rational transit plan for capital and service improvements. The large component of the study to be performed by WMATA would deal specifically with integration of the four area bus companies with the METRO System. Various options for consolidation of lines and improvements in service will be studied under both public and private ownership and management. This study would attempt to show what management steps should be taken to ensure

that the total metropolitan system is operated in the most efficient manner while providing improved levels of service.

7. London Transport Executive, operators of London's fine public transportation system, under contract to the Department of Transportation, has recommended actions which should be taken in Washington, D.C.-that is, the whole area-to improve the unique operation and effectiveness of this area's public transit system. These recommendations, which will be released in the next several weeks, are designed to create increased transit ridership through improvements in transit marketing, coordination of operations public parking policies and possible dedication of city streets for exclusive pedestrian and transit

use.

A major finding of this effort will be that there is a need at this time, which will increase substantially as METRO draws nearer to completion, for a closely coordinated bus transit system which precludes wasteful duplication of services and which offers the rider a real and a positive alternative to the use of his private automobile. Such a system would also and perhaps most importantly, allow quality service to those who have no alternative but to use public transit.

INTERIM PROPOSAL

These actions, I think, justify our desire to come back to you in two weeks with a specific plan which effectively puts these together into one package which is in the best interest of the metropolitan area.

Mr. CABELL. Thank you very much, Mr. Hahn.

I notice in following your testimony that there seem to be negotiations under way in several areas for the acquisition of some of the smaller companies by existing companies. I couldn't follow exactly which ones were seeking them.

Mr. HAHN. There are two, Mr. Chairman, if I may, WV&M in Northern Virginia, and WMA in Maryland.

Mr. CABELL. For their acquisition by other companies?

Mr. HAHN. That is, I believe, the ultimate aim. In the case of WVM, there is an application at the present time to acquire the rolling stock of WVM by the Northern Virginia Transit Commission, with an application to UMTA for the funding.

In the case of WMA-and you heard their testimony this morningthey are legally insolvent-the Department of Transportation in Maryland is seeking what I think is the same course of action towards them. I have been very much aware of and have assisted both of these efforts and negotiations both as President of the Council of Governments, and as a member of the City Council, as Mrs. Pennino, the very capable Chairman of the Councils of Governments will testify later today.

Mr. CABELL. Do you know-and you can disqualify yourself if you wish, because there will be other witnesses-do you know if D.C. Transit is seeking the acquisition of any of these other companies? Mr. HAHN. I have no knowledge of this, Mr. Chairman.

Mr. CABELL. Mr. Brovbill.

Mr. BROYHILL. I realize that Mr. Rhoads will be testifying on a large area that is not in your statement, so I won't pursue that any further But in the light of these negotiations going on, and of various planning