Evening star., 1952-03-02
Has Milking Time Arrived7

Wneh the Wolfson group Of Florida speeu-
lAtofs bought the Capital Transit Company
some people In Washington concluded that they
were going to milk the company dry, get out OF
IT. more than they put into 1t. and leave the
pubic holding the bag-in the form of public
ownership as the next step,
That Is the reason why the declaration of q
special dividend of $24 million out of surplus last
January provoked the excitement that 1t did,
Aho with 81 million remaining in the surplus,
that is the reason why Transit Company Pres
ldent 'BroadWater's intimation last week that
the process might be repeated revived all the
earlier speculation. Coupled with Mr.. Broad
waters other statements bluntly offering a
choice between guaranteed rs per cent rate of
return for the company and some form of Gov
ernment subsidy and public control of Metro
polltan Area transportation, the handwriting on
the wall seemed to be becoming more legible
and sinister.
MIR. Broadwater is plainly talking from the
point OF view Of the stockholders The interests
OF the public appear to be incidental. And one
OF the compelling reasons for the congressional
investigation that seems to be taking shape is
that it is high time to look around and discover
what means Congress and our Public Utilities
Commission may find in their possession to
protect the interests of the public.
Last summer the Public Utilities Commits
sion conducted series of hearings which built
up record of over $50 pages bearing upon the
reaSonableness and adequacy of the company's
service, equipment and maintenance and safety
OF operations. In the six months since those
hearings, the commission has issued no concu-
sionS as to what it found. The data accumulated
IN the hearings are being used, it is understood,
as check on other Investigations. Until factual
findings are announced, it will not be definitely
known whether or to what extent the transit
company's public service is deteriorating.
But there are other things that can be ex-
plored. The roots of the .transit company's
franchise granting it the monopoly it now en-
joys, should be examined Congress granted the
franchise. Presumably Congress can take it
away. Mr.. Broadwater laid down the law and
offered the public its choice between alterna-
tives. One would think that Congress could also
lay down law Of it's own and call it to the
attention Of Mr.. Broadwater and his fellow
investing operators. 1t is absurd to believe that
Congress will sit idly by and allow public
transportation system to be used for the per-
sonal profit of spectators.
Everything the transit company has done
so far has been done, 1t is stated in meticulous
compliance with the law. Its accounting system
Is prescribed by public authority. Its accounts
and operations are under constant supervision,
1t can use its surplus accumulated at the ex-
pense of former stockholders to strengthen the
company's financial position and provide for
future capital outlay any way 1t chooses.
Legally the expenditure of the surplus is beyond
control Of the Public Utilities Commission.
The important thing Is the intentions of the
company's new owners If they are going to
run the operation primarily for the benefit Of
the stockholders, and II service 10 to deteriorate
along with equipment In order TO pay dividends
10 the stockholders this is the time to examine
those intentions carefully and 10 examine the
means In possession Of Congress to see what can
be done In the public interest.