Philip C. Manuel, 81, who operated a barber shop in Capitol Hill for 54 year until his retirement in 1967, died of cancer Sunday at Fairfax Hospital.

Mr. Manuel opened the Capitol Hill Barber Shop in 1913 shortly after he arrived in Washington from Sicily, where he was born in the town of Nissoria. The shop was located at 135 Independence Ave. SE and it remained there until 1961, when he moved it to 206 Pennysylvania Ave. SE.

By 1920, Mr. Manuel had five barber shops in the Washington area, but he sold them off one by one in the 1920s and 1930s. He also had interests in real estate on Capitol Hill and elsewhere.

In 1970, Mr. Manuel's wife of 51 years, Annie, died as a result of injuries received in an automobile accident.

A year later, he married for the second time and moved from Washington to Springfield, Va., where he lived at the time of his death.

Mr. Manuel was a member of the Holy Rosary Catholic Church in Washington and a past member of the Sons of Italy.

In addition to his wife, Annette, of the home in Springfield, survivors include two children, Philip R., of Springfield, and Geraldine G., of Washington; two stepchildren, Frank Guida and Matilda Guida, both of Norfolk, Va.; two grandchildren; seven step-grandchildren, and three step-great-grandchildren.