Evening star. [volume] (Washington, D.C.) 1854-1972, 1950-12-15
PUG Told Split
OF Transit Stock
Would Aid Sale
Attorney Predicts
Increase of Holders
As Likely Result
By Harriet Griffiths

A proposed to split of Capital
Transit Co. stock shares would in
crease the marketability of the
stock and produce more stock
holders, the Public Utilities Com
mission was told today.
The PUG opened hearing on
the company's application to in
crease the number of shares Of
capital stock from 100000 to
$50, 900. and reduce the par value
from 500 to $25 per share. ]. E.
Heberle, vice president and con-
troller of the company, said the
split would mean no change in the
capitalization of the company,
which would remain at $24 mil
lion. The move would be similar
to changing a dollar bill into four
quarters.
Mr.. Heberle said he believed it
would be in the company's in
terest to have as many stock
holders as possible. He said he
felt also that since a widely dis
tributed stock is more marketable,
division would tend to help
future stock financing if that be-
came advisable.
Separation of Issues Asked.
Capitol Transit's ATTORNEY, Ed
mund L. Jones, moved that the
stock split question be separated
from the matter of eliminating
a $5A million "unclassifed &C
count" from the corhpany's as
sets.
This represents the remaining
balance of the excess of purchase
price over original costs in an
1895 deal by the old Rock Greek
Railway Co.
The PUG took the motion under
advisement
Capital Transit stockholders on
Tuesday approved the 4-for-1
Split-up in capital stock. The
plan still must be approved by the
PUG and the Interstate Commerce
Commission.
Mr.. Heberle quoted statistical
reports on stock splits of other
companies in recent years showing
gains in the number of stock
holders up to A per cent.
He gave the present book value
OF Capital Transit's stock shares
at $100.06, If the present value
of property were used. the value
would be increased by about S14.37
per share, he said.
Under cross examination by
Lloyd B, Harrison, assistant cor
poration counsel, Mr. Heberle said
he could not say specifically
whether there had been expansion
or contraction in holdings since a
Florida group bought large num-
Der Of shares that had been held
by the North American Co.
Mr.. Harrison wanted to know
If 1t had not been the practice
OF present stockholders to cut
down the number of holders. Mr..
Heberle said he could not answer
that with present information.
High, Low Quoted.
Mr.. Harrison also brought out
that the high and low prices Of
transit stock in November, 1850,
were $3.50 ard $35, while the
figures in November, 1949, were
$22.25 and $21.
Mr.. Heberle said there were a
number of factors that would
cause the difference in price. For
one thing, he said, the present
price reflects the relief received
by the company through a fare
increase.
Mr.. Harrison wanted to know
whether an increase in dividend
declaration was a factor. Mr..
Heberle said he did not think
that was the largest factor, but
it was one.
Last August, company directors
doubled the quarterly dividends
by increasing it from so cents per
share to 81.
Mr.. Harrison asked Mr.. Heberle
whether there was any need to
split the stock to make it market
able, and. Mr.. Heberle said he
thought there WAS