Evening star., 1952-02-27


study Of the situation began 70
appear.
The utlmatufn delivered by
., A. b, Br6adWatef Capital
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Transit PRESIDENT before a eeFhs
Iflttee meeting OF the Washlnas
Jon B0apd 0f Trade yesterday viii
|be discussed M h meeting Of the
Hull House District Committee
Monday chairman MeNilllaR Ans
h6llheed
Another member Of the commits
lee VINO preferred hBt 10 be auBted
|At lhls lMel gIlttered Al what no
eHlled the hlHhshAhdeH Ipublles
|besdHMBed'' attitude ef me aelns
|bHhgl MpI HeApdwAleplA dlAalHAs
|ure bhat he AlAe iaverA Il further
|eApylBa Hp NJ the eeHpAhvh pes
lhAlnlha AllpbluA lep the At9eks
halaePA VIII Ret thA glAAeAt aks
tehtleh 6F e9haFeAAl he praHllAedI
VIII AtHAv FHll Test
Fha senate District GHmmIttea
|hRA no immediate plans tAP tAks
|lRR Hp the HP9RaWRteP statement,
pending h study 9f the fHll tekt,
Jahn H. e9nnAHght9nl chairman
|gt tho Public UtllltleA p0mmlttee
al the Federation 9f eltlRens' Az
S9GlAtl9nsr announced thAt a spes
GlAl meetlng WIN be called soon N
consider the transit proposal
\ A. kameFeWl chairman nj tho
bubble Utilities Committee af Tho
Federation nj RHslnessmens As
seelaAens, said no would call A
committee maetlnR within ~ hours
No take w The matter and that
there was 4 possibility that q
special meeting Of tho full mems
harshlp would he called,
Commissioner y Joseph pnnns
hue commented that he was dehs
nitely opposedsto municipal ewn.
eEahlp Of transit facilities In the
District,
Cites Annual Del,elt
He declared that he spent O
year In San Francisco where they
have municipal ownership Of
transit facilities and that thk
service was "wretched". An an
nual deficit had to be met by the
taxpayers. he said.
James Flanagan, chairman of
the Public Utilities Commission,
declined to comment on the
IBroadwater speech, pending a
study OF the text. He attended
the meeting addressed BY Mr..
Broadwater.
In view of the BroadWater
statement. there was more than
ordinary interest in the next diyi-
dend meeting Of Capital Transit
directors, scheduled at l0:30 am.
tomorrow.
Mr.. Broadwater said that unless
the company is allowed to earn at
least 712 per cent on a rate base
Iof around $25 million, Washington
might as well get ready for mu-
|nicipal ownership.
indicating little hope that pri.
|vate ownership could solve the
present transit problem here, he
urged close study of a proposal
that Congress create a metropoli-
tan transit authority which would
issue income bonds to compensate
stockholders Of the company.
FavorS Additional Dividends,
He also announced that he
favors additional special DIVIDENDS
from the company's remaining A.
million surplus for the benefit az
the stockholders. He added that.
In order to maintain the sound.
ness Of the company, 1t was i'm.
perative to raise the annual divi-
dend rate on company stock from
the present 81 to $50 a share.
An annual dividend rate Of si.So
on the company's stock, which
was split 4 for ! last year, would
be equivalent to SO q share on old
stock. which had q rate of "a a
snare when the present control-
ling group acquired their holdings
from North American Co. for S20
q share In l040.
A recent $3.50 special dividend
from Surplus amounted 70 $40 a
share on old stock. or O return OF
half OF the original investment.
another $3.50 special would com.
plete repayment Of the entire
tSee TRANSIT. Page A.SJ