Evening star., 1952-04-10
Capital Transit
Not Earning It's
Higher Dividend
Stockholders Told
Recent Fare Boost
Is Not Adequate
By Donald B. Hodley

Capital transit Co. is not earn
ing it's current dividend rate of
$1.40 a year because the recent
rate increase granted by the Pub
lie Utilities Commission was in
adequate, j. A. B. Broadwater,
president, told the company's
stockholders today.
He emphasized, in a speech at
the annual meeting that the COM
pany had not lost hope that the
PUG eventually would approve an
adequate increase.
The company increased the
dividend rate from 81 a year to
$1.40 in February by the declara-
tion of quarterly payment of IS
cents. Earlier the PUG had al
lowed an increase of 10 cents in
the weekly pass to $2.10.
In response to stockholders
question. Mr.. Broadwater said it
was unfortunate that at recent
rate hearings the PUG had chosen
to accept figures from its own staff
in preference to data from COM
pany experts who were familiar
with operations.
He added that results of the 10
cent increase in the past now
clearly demonstrated that the
company's position on rates was a
correct one and that the PUG had
misjudged.
ALI Officers Reelected.
Louis E. Wolfson, board chair
man, presided at the meeting.
Proxies for 779,190 of the COM
pany's 100000 outstanding shares
were cast unanimously for the re-
election of Is directors. Later, all
officers we're reelected at an or
ganization meeting of the board.
Commenting on the large pro-
portion of proxies voted, Mr..
Wolfson said that the sos per
cent represented broke all records
for annual meetings back to 1941.
II think it speaks we'll for the
confidence of the stockholders in
the management" he said.
Mr.. WolfSon also reported that
he had given attention to the
number of stockholders who had
bought their shares in Capital
Transit for $100 a share or more.
He said 319 of the 2,270 stockhold-
ers had paid that amount for
1887 shares. In considering the
fairness of dividends, it is neces-
sary to consider these people, he
said. The present $1.40 annual
rate amounts to less than 6 per
cent on an investment of $100
share.
Increases Compared.
He also said Capital Transit
fares since 1899 have increased on
average only 49 per cent and COM
plimented the management for
efficient operation which kept the
fare average low in relation to
other prices. He declared that
wages since 1889 have gone up 1872
per cent, that the annual sub
scriptions of The Star and the
Post had advanced 169 per cent;
tnat butter had gone up 145 per
cent, and shoes were 135 per cent
higher. (The Stars monthly rate
was IS cents in 1889 and now is
$1.75, an increase of 1872 per cent?
Reelected directors were Daniel
w. Bell, William B. Bennett. Mr..
Broadwater, G. Thomas Dunlop,
Elkin B. Gerbert, Robert E. Har-
vey, j. Edward Heberle, Edward D.
Merrill, Jack Surasky, Frank E.
Weakly, Doran S. Weinstein, Louis
E. Wolfson, Cecil Wolfson, Sam
w. Wolfson and E. c. Giddings.
Mr.. Wolfson also announced
that the bond Indebtedness of the
company had been reduced from
ST million to $6.5 million since
the issuance of the annual report.
Officers reelected in addition
to Mr.. Wolfson and Mrs. Broad
water, were Mr.. Weinstein, execu-
tive vice president; Mr.. Giddings,
vice president; Mr.. Harvey, vice
president and controller; Ralph T.
Powell, secretary; S. E. McCor-
mick, treasurer; w. c. Harper,
assistant treasurer, and Richard
w. Turner, assistant secretary.