Evening star., 1951-04-10
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misunderstood and announced
that the company would call a
luncheon meeting for members of
the press shortly in an effort to
clarity company policies.
Mr.. Wolfson also said he antici-
Ipated a serious labor situation as
Ia result of the unions refusal of
the company's wage offer. He in
dicated the company would op-
pose arbitration of the dispute on
the grounds that arbitration might
lay the company open to an un-
bearable addition in costs. @
Mr.. Wolfson, whose meteoric
rise as an industrialist has tat-
tracted Nationwide attention,
was elected board chairman of
Merritt Chapman & Scott Corp.
of New York, big marine con-
struction firm. only last week.
It is expected that he will divide
his time between offices in New
York, Washington and Jackson
willie, Fla. He maintains homes
here and in Jacksonville.
Owns $3.50 Shares
Mr.. Wolfson and his associates,
whom he has described as "12
top ranking executives in diversi-
fled industries" gained control Of
Capital Transit bysspurchase Of
109,45S of the company's shares
from North American Co. at $40
a share in 1949, and later added
to their holdings. The proxy
statement for today's meeting
stated that Mr.. Wolfson owns
$3.50 shares of the company's
stock, has an indirect interest in
1000 additional shares held by a
corporation and by partnership,
and is a co-truStee for ia other
shares. His wife owns 1000 shares.
Mr.. Wolfson until today had re-
NAMED in the background in COM
pany affairs since his group took
over, but some of it's moves had
aroused spirited criticism and
opposition. Among these were
drastic cuts in maintenance ex-
penditures. doubling of the cash
dividend and plans for a 4-for-1I
stock splitup.
Splitup Decision Pending.
AS part of the economy drive
the company's recent action to-
discontinue seven bus lines in the
Maryland suburbs also stirred up
a hornets nest. The splitup plan
now awaits final decisions of the
Interstate Commerce Commission
and the District Public Utilities
Commission. So
q. Other problems faced by the
company include an increase of
about $3.50 900 Annually in the
company s power rates charged by
Potomac Electric Power Co. and
the unions refusal last week Of a
company offer of wage increases
and other benefits said TO anoent
to $1.5 million a year. The offer
was characterized by a company
spokesman as. final. but union
officials called it insufficient. Ne
gotiationS will begin May.1.
A native of st. Louis, Mr.. Wolf
son was educated in the public
schools of Jacksonville. In high
school there, his outstanding foot
ball playing won him a place on
the All-Southern team and al
scholarship to the University of
Georgia. He also was a football
star there. He was graduated in
1888.
Mr.. Merrill's retirement closes al
brilliant career as transit exec
utive. He is a past president oil
the American Transit Association
and past treasurer of the National
Association y of Motor Bus Oper-
ators.
He came to Washington in 1926
as president and general manager
OF the Washington Rapid Transit
Co., and when that company wasI
with Capital Transit inI
1886, became vice president andl
general manager of the latter
company. He was elected presi-
dent in 1897 and in addition be-
came board chairman in July,
1947.
Mr.. Broadwater, the new presi-
dent of the company, has been an
associate of Mr.. Wolfson for l0I
years. He became controller and
treasurer of the Tampa Shipbuild-
ing Co. in 1941 and became presi-
dent Of the Universal Investment
Co. of Jacksonville in 1948. He
came here in October, 1949, as vice
president and chairman of the
Executive Committee of Capital
Transit soon after the new group
took over and was elected execu-
tive vice president in 1850. A
native Of Edgefield, S.. c., he at
tended school in North Augusta.
,C