Evening star., 1951-04-15

I4 CCb1y 14VO NOAk1pCt4G1O44 W4U44
Capital Transit within the Dis
jtrict.
The North American Co., 60
Broadway, New York, a public
utility holding company interested
chiefly in electric light and power
companies, held about 109,458
shares of Capital Transit stock
some Is per cent.
Divorce Ordered.
BY order of the SEC on April
IA, 1912, North American was re-
quired to sever its relationship
with Capital Transit. The story
of how the group of Florida in
vestors, who now control Capital
Transit. came to be interested
came out officially at SEC hear
ing June %, 1949.
H. Grady Gore, Route 2, Rock
vile, Md, a real estate man who
owns a chain of Washington
apartment houses and the Fairfax
Hotel and engages in farming,
had a guest from Atlanta, Ga.
He was Walter C. Troutman, who
said he knew the people that had
the necessary money to buy the
CT stock that North American
owned. but had to get rid of
under the SEC order.
Mr.. Gore said early in 1949 he
himself had purchased about a
couple of thousand shares of CT
stock. He wanted to buy part of
what North American had-about
10000 shares, but the holding COM
pany did not want to sell piece
meal, but in one block. Mr.. Gore
declared he did not think the
stockholders had gotten flair
break over long period of years. I"
He pointed out that in 1947-48,
while the stockholders had re-
Iceived, only 100000. labor was
paid more than $50 million. He
did not think that was fair. The
stock was paying only 2 per cent
dividend and a lot of people had
paid as high as $145 and $3.50
for the old Capital Traction Co.
stock, Mr.. Gore said.
Cancellation Suggested.
Mr.. Gore suggested to CTC that
it take in the North American
stock and cancel it, but this was
not done.
Mr.. Troutman put Mr.. Gore in
touch with the Florida investors
group headed by Louis E. Wolf
son of Jacksonville, Fla. AS a
result, Mr.. Troutman was given
$500 and Mr.. Gore and his two
sons, H. Grady Gore, jr., and
James G. Gore, received ~ per
cent of the purchase price from
North American for bringing the
parties together. 49,
On September 10, 1949. North
American sold it's entire interest
in Capital Transit. Mr.. Wolfson.
president and principal stock
holder of the Tampa .Shipbuilding
Co., who had a wide variety of
business interests, heads the list
OF new owners who acquired con-
troll of CTC through the North
American stock acquisition.
Some Washington stockholders,
including James ODonnell, ST..
and his attorney, William j..
Hughes; Attorney Gilbert Hahn,
jr., who represented other local
investors, and c. l.. McCrea, an
other stockholder, vainly fought
to deny SEC approval to the
Florida group.
Mr.. Hughes suggested that at
the purchase price of $40 a share
of stock by the new owners. it
would not be long before they
could pay themselves back almost
the entire cost in dividends. Mr..
Hahn developed at the SEC hear
ing from j. A. B. Broadwater-aI
Wolfson associate just named
president of Capital Transit-that
~S~~~SS
the new owners were acquiring
stock for investment although it'll
paid only 21a per cent income-aI
so cent per share dividend In 1948I
-yet they were paying $40 al
share for it.
Indefinite Holding.
Mr.. Broadwater replied that
they planned to hold CTC stock
AN indefinite" time, were not
planning to form in the future al
syndicate or voting trust or hold
ing company to acquire any of
the stocks.
Doran S. Weinstein, another new
owner, told the SEC hearing there
was no agreement among the pur-
chaserS relative to services rem