Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-04-07


that concern me.
Now, l can't conceive where
we're anywhere close to any rec
ommendation of liquidation. -.
@. Do you think it is necessary
for this company to have any
cash or liquid assets on hand
against the possibility of con-
version?
A! No. sir. I'll tell you. I think
if you don't mind my explain
ing the situation that concerns
me a great deal-my means and
ways of financing have always
been to call on the owners of
a company.
Now. 1 think I ought to ex-
plain this to show you why it's
so important to the Capital
Transit Co. and this community
to maintain satisfied and salts
factory and fair return to the
stockholders, because one of
these days I'm in hopes that
some plan may be devised, and
I'm not an expert to say that
the proper system for WASH
ington may be the monorail sys-
tenn, maybe subways; I do not
know, but I believe a complete
study will be needed, and that
will entail millions of dollars.
Now, have followed the plan
of financing in other corpora
tons, which is a matter of fact,
that have gone to the stock
holders and said, Here is your
company. Under the present sit
uation, you can't get any private
or public financing"
You can't get any public
financing of any transit company
today due to lack of earnings
and due to the complications
that exist in rates cases, and so
forth.
So, if I have to satisfy stock
holders and see that they get a
fair return, one of these days if
proper plan-I may have to go
to the same stockholders and
ask them to buy 100000 shares
Of stock and bring in SIS or $40
million. one share for one, and
that is the method of my financ-
ing in other corporations.
Now, l have always had that
in mind.
Now, I don't know where the
idea developed that we are trying
to liquidate this company. that
we are trying to run and get out
of there. 1t isn't my business
philosophy.
@. You had SIS million in 1919
Now you have So million. If you
had So million you would have
So million toward the monOrail
system without going out and
calling upon the stockholders.
A. Mr.. Weston, that amounts
to nothing. If you have to come
up with SIS or $40 million. So
million amounts to nothing.
We have had stockhol'' after
stakeholder contact us imme-
diately after we moved in here
and say, Listen. I received less
than Government bonds over q
period of 10 years. I'm dissatis.
fed"
When we started increasing
dividends, we have had stock
holders-and those stockholder'
today, I believe, will back the
directors of this company, be-
cause they are satisfied. g
So, why should we worry ovel
So million when we may have tt
call on them for SIS or $40 r:il'
lion at the time it present!
| itself? -.
@. You don't believe this com.
pany needs any reserve for con.
tingencies of any kind, is thai
right?
A. No, sir; I don't, for the
simple reason if we have clear
ance of our funded debt. we have
clear assets, that I believe we
can go out and borrow sufficient
money to weather any storm
that may present itself during
any time.
@. Suppose that you get into
position where you have to
borrow money to pay dividends.
Do you think that would be
healthy?
A. No, sir, and I don't think
if we ever get in that position