Evening star., 1952-02-28
Capital Transit
Boosts Dividend
ToS1.40 Share
Directors Soy Increase Q
Is Within 634%
Allowed by PUG
By DonoId D. HodIey

Directors Of Capital Transit Co.
today increased the quarterly DIVE
dend on company stock to 35 cents
b share. compared with 26 cents
paid previously, thereby putting
the stock on an annual dividend
basis Of Sl.40 d share.
"The new dividend payment
establishes d policy which the
company will ehdeav0f TO ffiaifis
tain and comes within and Is less
than the Oh per cent return ala
loved by the Public Utilities G6ffis
mission Oh the e6fhpahy's rate
base" the company announced
after Its monthly beard ffieetihEs
"Fhe new payment Ii within the
range OF dividend payments paid
by ether l6eal public utility Gems
Bahies and is payable Aefil | TO
holders OF record March ID, ieba,"
the statement added,
6eeeRd DEVELOPMENT,
The announcement OF teday's
dividend increase came as the
weeks second development res
lating TO transit affairs, In an
address on Tuesday, j, A, 3,
RreadWater, president OF the tran-
SIT company, told the washington
Board OF Trade that unless the
company is allowed q higher net
income the only alternative would
be municipal ownership,
Mr., BroadWater declared also
that he faVors q further distrl.
button In the form, OF O special
dividend from the company's re-
naming surplus Of more than 81
million and eInphatically declared
that he favored an increase In
the annual dividend rate TO Si.b0
o year.
I'm my opinion this positively
must be done II transit In Wash.
ington Ia to continue under prt.
vate ownership" he said.
GlddinEs Elected.
The cornpany's statement today
also announced the election OF D.
Cleveland 0iddingS as O member
OF the board OF directors In place
of Floyd w. Akers, who resigned.
Mr.. Qiddings has been with the
company since io42 and has
served as vice president since
ie47. He Ia In charge OF public
relations for the company.
Company officials indicated that
the resignation OF Mr.. AkerS, who
Ia widely known In Warrington
business circles, was not connected
with the Droadwater address
Tuesday.
"Mr. Akers' resignation was
mailed TO the company soIna time
late last week and was received
on Monday. the day before Mr..
Broadwater delivered his address,"
they said,
Turner Elected TO Post.
The company also announced
that Richard w. Turner was elect.
cd assistant secretary Of the com.
pany, In addition TO retaining his
responsibilities as superintendent
OF Investigations and adjustments.
The appointment of Ralph Powell
recently as secretary left the posi-
ton OF assistant secretary vacant.
Mr.. Turner formerly was an
assistant to Mr.. Powell. Louis e.
Wolfson, chairman Of the board.
presided at today's board meeting,
The transit company created O
furor In January when IL de-
clared q $3.50 bonus dividend
from its surplus, while application
for a fare increase was pending.
This took some $2.5 million from
the surplus fund, leaving 1t at
about 81 million. The bonus
amounted to $40 on the old stock
before 1t was split and followed
the split by about six weeks.
Have Realized $3.50.
When the group Of Florida
businessmen. headed by Mr..
Wolfson, bought controlling in
terest in Capital Transit Co. more
than two years ago, they paid
about $40 share. Since then and
before today'S action, regular
dividends and the special bonus
payment from surplus last month
have returned $l7.50 Of the orig.
inal investment to Mr.. Wolfson,s
group.
This has happened while the
company has been pleading lack
Of revenue. II obtained O fare In.
crease last month, characterized
BY company officials as "disap.
pointing" The increase added 10
cents to the weekly pass. bringing
the price to S2.i0.
Denies Secret Meeting,
Meanwhile. Capital Transit de.
MED that 1t had approached other
local bus companies In an secret
meeting last month to get re.
actions to proposed metropolitan
transit operating authority. Such
an authority would buy up the
companies and operate II as n
government function.
Mr.. 0iddings said that q meet.
Ing was held with the other
(See TRANSIT. Page A-3.)
EanSu1ad panl;nn