
They ran into financial trouble in 1955, due in part to the owners paying themselves huge dividends during a time of declining transit ridership. They tried to make up for the falling revenue and squandered reserves by requesting a fare increase, which was denied. As a result, they were unable to offer any raises for employees and the employees went on strike. During the seven-week strike, passengers had to find other ways to travel.
Capital Transit met its demise in an interesting and unusual way. One of the owners, Louis Wolfson, dared the Senate to revoke his franchise, claiming no one else would be willing to take it over. Congress did indeed revoke his franchise, and the new system, under the leadership of Ray Chalk, was known as DC Transit.
Great story, sounds like in the old days corporate execs used to have alot of gall after lining their pockets at others expense! Hey, wait a minute, they still do... Love the hair on the switchboard gals.
ReplyDeleteWhat a depressing post, Christine!ha! It seems Wolfsons descendants have taken over America:)
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