Tabulation of results of poll taken of members of Washington Board of Trade-Continued

QUESTION NO. 3. UNDER THE PRESENT SYSTEM OF GOVERNMENT THE BOARD OF EDUCATION IS APPOINTED. THE AUCHINCLOSS BILL PROPOSES THAT IT BE ELECTED BY THE VOTERS. DO YOU FAVOR ELECTION OF THE BOARD OF EDUCATION?

QUESTION NO. 4. A NEW METHOD OF FEDERAL PAYMENT IS SUGGESTED IN THE LOCAL SUFFRAGE BILL. IT MIGHT INCREASE THE FEDERAL PAYMENT. WOULD YOU FAVOR THE AUCHINCLOSS BILL EVEN IF IT MEANT A LOWER FEDERAL PAYMENT?

QUESTION No. 5. DO YOU THINK LOCAL SUFFRAGE WITHOUT REPRESENTATION IN CONGRESS IS DESIRABLE?

QUESTION No. 6. DO YOU LIVE IN THE DISTRICT OF COLUMBIA? MARYLAND? VIR

QUESTION NO. 7. IF YOU LIVE IN THE DISTRICT, HOW LONG HAVE YOU LIVED HERE?

Tabulation of responses of Board of Trade members to questionnaire on local suffrage as of Feb. 19, 1948

QUESTION NO. 1. YOU HAVE JUST READ HIGHLIGHTS OF THE AUCHINCLOSS BILL, H. R. 4902. DO YOU FAVOR ITS ADOPTION?

QUESTION NO. 2. DO YOU THINK THOSE LIVING IN THE DISTRICT SHOULD APPROVE BY AN OFFICIALLY CONDUCTED REFERENDUM VOTE, ANY NEW FORM OF GOV. ERNMENT BEFORE IT IS PUT INTO EFFECT?

QUESTION NO. 3. UNDER THE PRESENT SYSTEM OF GOVERNMENT THE BOARD OF EDUCATION IS APPOINTED. THE AUCHINCLOSS BILL PROPOSES THAT IT BE ELECTED BY THE VOTERS. DO YOU FAVOR ELECTION OF THE BOARD OF EDUCATION?

QUESTION NO. 4:1 A NEW METHOD OF FEDERAL PAYMENT IS SUGGESTED IN THE "LOCAL SUFFRAGE" BILL. IT MIGHT INCREASE THE FEDERAL PAYMENT. WOULD YOU FAVOR THE AUCHINCLOSS BILL EVEN IF IT MEANT A LOWER FEDERAL PAYMENT?

1 This question based on those answering "Yes" to question No. 1 only.

QUESTION NO. 5. DO YOU THINK LOCAL SUFFRAGE WITHOUT REPRESENTATION IN CONGRESS IS DESIRABLE?

QUESTION NO. 6. DO YOU LIVE IN THE DISTRICT OF COLUMBIA?

MARYLAND?

Question 7. If you live in the District, how long have you lived here?

GAINING PUBLIC ACCEPTANCE FOR NEEDED FARE INCREASE, BY E. C. GIDDINGS, VICE PRESIDENT, CAPITAL TRANSIT Co.

(Submitted by William A. Roberts, Esq.)

In July 1946 new wage rates left Capital Transit Co. facing increasing costs. Deficits were a foregone conclusion. Higher costs per mile and more miles needed to meet normal standards were of immediate concern.

The circumstances would soon test the financial integrity of the company. The only solution was an increase in fare. The fare structure in July in the District of Columbia was $1.25 weekly pass; three tokens for 25 cents; 3-cent school ticket. The latter rate could only be changed by an act of Congress.

To change the fare structure it would be necessary to petition the Public Utilities Commission, the local regulatory body, and present an airtight case— financially and statistically complete-to warrant a change. Before doing this public attitudes were of major concern inasmuch as Washington, whose people do not have any vote, is a city of small neighborhoods, each of which has its own pressure group. These groups, also banded into geographical and city-wide entities, hold meetings regularly and provide a steady flow of news to local dailies. In addition, they have their own media outlets. Their direct and indirect influences reflect popular attitudes.

The preparation of the financial and statistical detailed case, of course, was a necessity. It had to have its basis in experience. The best judgment in July was that the time for filing the petition would be in October or in November, subject to later developments.

THE PROBLEM

The immediate problem in July was the conditioning of public attitudes to not only accept the current and prospective facts but also to neutralize organized objections when the application was finally made. Thus, it was reasoned, the company could present its case to the Public Utilities Commission in a normal atmosphere where facts and not emotions or outside pressures would prevail. Three months was the outside time limit in which to do this. Yet, the plan of action had to be flexible to cover a longer period if circumstances permitted.

THE PLAN

The plan applied a technique based on an offensive plan of action rather than defensive. Capital Transit's financial troubles were placed in the public's lap before they actually crystallized.

The springboard for the conditioning campaign was centered around space advertising in four metropolitan dailies. These ads were large enough so as not to be dominated by other ads yet not so large as to appear extravagant. Other media-Transit News (a take one); radio commercials; personal contacts, etc.were to be supplemental until all doubt as to the date for filing the petition was removed. Then, emphasis was to be placed on personal contacts.

The theme of the campaign had its basis in the fact that the company was in business to make money-a fair and reasonable return on its investment. Financial stability, the direction in which the company was financially headed, and

the cause of the critical conditions, were to be stressed. It was felt a frank current discussion would assert the leadership needed to establish a favorable public attitude. Better service or new vehicles were not promised.

NEWSPAPER ADVERTISING

The first of the space advertising was scheduled for appearance about every 3 weeks, to be stepped up as the date for filing became fixed. The theme was to finally be exposed to the public continuously for about 3 weeks before the petition was actually filed.

As the tempo increased some public objections began to take form.

This was expected (and welcomed) as it served as a steam-letting process before the company had actually applied for relief.

The form of the campaign at this time literally left this question with the public: What would you do under the circumstances?

A definite feeling was also asserting itself through personal contacts: Why didn't the company ask for an increase if the facts were as stated?

No specifics had entered the theme up to this time. It was generalized but in such a manner as to relate the generalities to the problems of the individual seeing or hearing the message. The developments were encouraging but they also indicated that the timing was all important.

The space advertising paced the campaign. The direct statement that the company would have to ask for an increase in rates was first made in an ad appearing on November 22, 1946. Caricatures of a streetcar and bus (used on past occasions in advertising) were the means of making the direct statement indirectly. From there on, the copy was directed toward the necessity for the higher fares. It was deliberately positive.

The space advertising campaign was climaxed with a large five-column ad which ran in all four dailies on the day on which the application was filed-January 17, 1947.

PUBLICITY

Two days before the date on which the petition was filed, the newspaper reporters who regularly cover the Public Utilities Commission proceedings were asked to a conference with the attorneys who were to handle the case. The reporters were each given copies of the mimeographed material and encouraged to ask questions. They were told, in confidence, when the filing would be made. The resulting news stories and editorials were favorable; at their worst, neutral in the presentation of the facts. The presentation to organized groups followed the news break of the filing of the petition.

GROUP MEETINGS

The time element between the filing of the application and the date for public hearing left several days for the home-stretch plans. Once the public hearings started, the company could no longer take its story directly to the public or to groups. In the intervening period a visual presentation of the high lights of the circumstances which led to the petition and the basis upon which a fair and reasonable return was determined was prepared especially for presentation to groups. The facts were also outlined in a mimeographed presentation. (The same as that given the newspaper people.)

THE RESULT

The steam-letting process developed by the dissemination of information prior to the filing for the increase had the effect of detonating criticism from the same sources after the filing occurred. In only one instance did an organized neighborhood group pass a resolution protesting an increase prior to the actual filing. This group found itself finally in the company of Communists. It was apparently embarrassed and did not follow through in hearings before the Public Utilities Commission. Several associations passed resolutions favoring the increase without reservation. Others endorsed it in principle with exceptions as to detail. Some took no action but left it to the Public Utilities Commission.

A representative of a group with city-wide representation quite voluntarily eared on the witness stand and stated the company security holders were

entitled to a guaranteed return greater than that asked by the company in its petition.

The radical opposition was discounted by the press and by the general public.

THE AFTERMATH

But there was still work to do after the increase was granted. The Public Utilities Commission issued its order granting the company's petition on Thursday, May 8. The new rates were to be effective Sunday, May 11. Tokens were to be eliminated. The company had only provided for redemption of tokens through its offices. This left the small-token holder, after the increase, with the choice of redeeming his tokens only after a great deal of trouble. This aroused considerable resentment. The company quickly made arrangements with a drugstore chain, several department stores, and commercial and savings banks throughout the city to cash up to $3 worth of tokens. The financial limitation was placed on the redemptions because of internal circumstances. The company also announced that the public could mail its tokens to the company and the money value of the tokens and the postage would be refunded.

One of the newspapers picked up the idea of having the public mail tokens to the Children's Hospital for its building fund. The company fell in with the idea quickly and said it would redeem the tokens from the hospital.

The situation developed by the invalidation of the tokens may well have led to a loss of the considerable good will engendered, but by quick action the general public accepted the circumstances with remarkable good grace.

SUPPLEMENTAL STATEMENT TO THE SUBCOMMITTEE ON HOME RULE AND REORGANIZATION OF THE COMMITTEE ON THE DISTRICT OF COLUMBIA ON BEHALF OF THE INSURANCE INDUSTRY OF THE DISTRICT OF COLUMBIA CONCERNING H. R. 4902 AND S. 1968

(Submitted by Edward J. Schmuck, general counsel, Acacia Mutual Life Insurance Co.)

When the designated spokesmen for the insurance industry in the District of Columbia appeared before the Subcommittee on Home Rule and Reorganization on February 10, 1948, members of the subcommittee raised questions and requested additional information which has now been compiled and is submitted herewith.

I

With respect to that portion of the discussion which involved the present organization of the State departments supervising the operations of the insurance business in the several States, there is attached, marked annex A, a complete summary, compiled by American Life Convention, showing the historical and present organization of the insurance department in each of the 48 States and in the District of Columbia. This summary shows that 29 States now have completely separate and independent insurance departments operating under a commissioner or superintendent of insurance or other titular head who is responsible by statute for all of the operations of the department. In 14 additional States the statutes provide for a separate bureau operating under or as a part of a larger State department, but with express statutory provision made in practically all of these States preserving the integrity of such separate bureaus and charging the head of the bureau, rather than the head of the more comprehensive department, with the execution and administration of the insurance laws. These States are Alabama, Arizona, Kentucky, Maryland, Massachusetts, Minnesota, New Jersey, New Mexico, Ohio, Tennessee, Texas, Utah, Vermont, and Virginia.

In only 6 out of 49 jurisdictions is statutory provision still made for a State officer other than a designated commissioner or superintendent of insurance to act ex officio as the officer charged with administering the insurance laws. These States are Florida, Georgia, Louisiana, Montana, Nevada, and Rhode Island. It will be noted, however, that even in some of these States the statutory plan contemplates that the officer concerned will designate a deputy to assume responsibility for the insurance functions. In Louisiana, for example, there is specific statutory authorization for an assistant secretary of state, who acts as deputy