Evening star., 1949-09-03
CCC|ears Way
For Transit Sale
To Wo|fson
Florida Group Plans
Close Deal Soon
To Gain Control

The way was clear today for q
group of Florida businessmen,
headed by L. E. Wolfson of Jack
sonville, to assume a controlling
interest in the Capital Transit Co.
and its subsidiary, Montgomery
Bus Lines, Inc.
The Interstate Commerce Com
mission overruled recommended
tions of one of its own examiners
and gave its approval late yes
terday to the proposed sale Of
l09.458 shares of Capital Transit
stock, now held by North Ameri-
can Co., a utilities holding COM
pany, for $2,189, ,160 to the Florida
interests. The Securities and Ex-
change Commission already had
sanctioned the deal.
Cores to Receive 1H%.
The order directed that H.
Grady Gore of Rockville, H. Grady
Gore, jr., and James G. Gore re-
ceive 1l2 per cent of the purchase
price "as compensation for their
services in arranging the transac-
ton" They are to receive that
payment from North American
when the transaction goes through.
H. Grady Gore owns hotel and
several apartment houses here
and, with other members of his
family, holds between 5000 and
1000 shares of transit company
stock.
Mr.. Wolfson, through his at
torney, John R. Turney of WASH
ington, issued the following state
ment:
1T is needless to say that my
associates and I are deeply graft
fed by the confidence which has
been reposed in us by the ICC
and the SEC in approving our
purchase of a controlling interest
in the Capital Transit Co.
"We take this opportunity to
assure both commissions, as well
as the Washington public, that
we will exercise every endeavor
within our power to maintain
Capital Transit as foremost fac
tor in the development of the
District of Columbia and its en-
virons.
Cooperation an Objective.
1T will be a major objective
of our group to cooperate with
the other stockholders of Capital
Transit and with the excellent
officers and employees of that COM
pany in providing for the resi-
dents of the Nations Capital the
very best possible service at the
lowest cost consistent with pro-
viding that kind of service.
"We appreciate deeply the ex-
pedition and thoroughness with
which these necessary proceedings
have been handled by both of
these commissions.
A spokesman for Mr.. Wolfson
said at Jacksonville that a deci-
sion may be reached early next
week on the date for the actual
consummation of the transaction
with North American. The Wolfson
group has until November ! to
conclude the sale.
Meanwhile, Gilbert Hahn, jr..
attorney for c. L. McCrea, a Cap
ital Transit stockholder who had
sought to form a syndicate to buy
the North American stock, COM
mented that I'm afraid this de-
cision is the end of the road"
Terms Held Reasonable.
The ICC approval came nine
days after the SEC put its stamp
of approval on the proposed sale.
so far as the propriety OF the
transaction was concerned.
The ICC said in it's ruling yes
terday that the terms and condi-
tions of the sale were found to be
"just and reasonable" and that
acquisition by the Florida interests
will be consistent with the public
interest"
ICC Examiner Vernon v. Baker
recommended. on August IL, that
the commission deny the applica-
ton of the Wolfson group. be-
cause the proposed purchasers
have no previous experience in
transportation and live in places
far removed from Washington.
The commission members noted.
on the other hand, that they are
mot convinced that the applica-
ton should be disapproved solely
because of the nonresidence OF the
parties of their lack of experience
in transportation" They went
on to say:
"It seems reasonable to assume.
in view of their inexperience, that
they will rely on experienced and
efficient management to protect
their investment. Such manage
ment would also protect the in
vestment of the numerous minor
ity stockholders and should assure
the continuance of an adequate
and efficient transportation serv-
ice to the general public"
$40 Per Share.
The price of $40 a share for
North Americans stock, the 1CC
pointed out, is somewhat more
than the market price Of the
stock prevailing prior to an
nouncement of the proposed
transaction on June g."
The Florida group already has
put up $250,00 toward the pur-
chase price.
The LCC order notes that the
group agreed to provide the re-
mainder by November /. The
109, 9,458 shares are to be divided
as follows among the nine mem
bers: L. E. Wolfson, 50,458; Sam
w. Saul and Cecil Wolfson, 12,-