Evening star., 1951-04-16

IN Udlnlng lTdnN |
Control Is Traced
Continued From First Page.)
ing any new money or reflnancing.
He conceded the Florida investors
had purchased a sufficient amount
Of the company's stock to gain
control,
The hearing also developed that
1t would leave less than 100000
shares available for wider distribu-
ton to the public Of the existing
100000 shares Of capital stock
each with a par value Of 500. The
company now wants to issue $780,
900 shares Of common capital
stock of the par value of $25 each
in exchange for the 240, 900 shares.
The company has an authorized
capital stock of $24 million.
Attorney Jones told the commits
sion that some of the new owners
have sold some Of their stock and
some have acquired stock, since
they bought the company. Hel
denied the four-for-one stock split
is for the purposes of speculation
and said there is no disposition
to unload" He said the examiners.
who recommended diSapproval of
the plan, have gone beyond the
requirements of law" in SayingI
that the company must show it'll
would improve it's position and en-
able it to render better service to-
the public.
Stock Up SIS a Share.
Mr.. Jones said the stock has
gone up considerably in the pres
ent bull market. It is now selling
for around $35 a share, or $15I
more than the new owners paid for
1t.
Since the Florida investors took
over, there have been some changes
on the board of directors. But
until the annual meeting Of stock
holders April 10. veteran employees
of the company remained in top
jobs.
Then the veteran board chair
man and president, Edward D.
Merrill, formally announced his
retirement. He still remains a
director. Likewise. j. Edward
Heberle, longtime vice president
and controller. who usually has
been the company's star witness
before public regulatory bodies
and who has an intimate ac-
quaintance with CTC inner
finances, went into retirement. He
also remains board member.
William B. Bennett, former vice
president and secretary. who re-
tired May 81. 1850. still remains
as a director. Another veteranI
employe. E. Cleveland Giddings,
continues as vice president. He
also handles public relations.
Fleming and Neal Out.
But some faces on the board
for many years have disappeared.
Robert v. Fleming, president Of
the Riggs National Bank. and Al
fred G. Neal. ut the time presi-
dent Of the Potomac Electric Pow
er Co.. have resigned. Their resig-
nations were accepted at board
meeting on August "a. 1850. with
sincere regret and with expressions
of appreciation" for long service.
With Mr.. Merrill. the other
members of the present board Of
directors are: Floyd D., Akers,
president, Capitol Cadillac -Olds-
mobile Co.; Daniel w. Bell. presi-
dent, American Security & Trust
Co.; Mr.. Bennett, Mr.. Broad
water, the new president: G.
Thomas Dunlop. retired attorney
Of Chevy Chase, Md; Mr.. Ger
bert, president of Universal In
vestments, Inc, Jacksonville, Fla;
Mr.. Heberle, John j. Manning.
New York attorney; Mr.. Surasky.
who is assistant to the executive
vice president of the company:
Frank E. Weakly. president,
Washington Properties, Inc; Mr.
Weinstein, now vice president and
secretary of CTC; Cecil Wolfson.
vice president Of q. S. Wolfson
Bros. Corp, Jacksonville; Louis
E. Wolfson, industralist, who now
gives a Washington address but
was recently a Jacksonville busi-
nessman with theater and other
interests now the new board
chairman, and Sam w. Wolfson,
secretary treasurer of the U. S.
Wolfson Bros. Corp.
Majority on Committee.
On April 10 Of last year, Henry
D. Champion retired as treasurer
following 81 years Of continuous
service. C. B. Koontz, another
veteran executive, who was treas
urer, has just retired.
The new owners nave moved
into active control. Through Mr..
Broadwater, Mr.. Weinstein, Mr..
wolfson and Mr.. Surasky, they
have a majority on the seven-manI
executive committee.
ICC Division 4. in approving
the North American stock sale,
observed that In view of the way
the Florida investors co-operated
in the purchase as joint venture
and their present and past rela-
tionship, it is reasonable to sup
pose they will consult among
themselves and act in concert
with respect to the corporate af-
fairs of transit"
The ICC also pointed out that
less than 80 per cent of the stock
outstanding was represented at
the 1949 stockholders meeting.
But the percentage represented
then was larger than at any other
rareyt SaSsior IL said