Evening star., 1954-05-24
Official BaIks
Al Question on
Wo|fsonPat
Court Order Planned
To Force Answer by
Capital Transit Aide

A Capital Transit Co. executive
today refused to answer ques-
tionS said to be directed at the
business philosophy" of the
Wolfson management in the
Public Utilities Commission in
veStigation of the company.
Doran WeinStein, executive
vice president, refused on advice
of counsel to answer queries by
Assistant Corporation Counsel
Lloyd Harrison on the acquisi-
tion by the Wolfson group of
the st. Johns Shipbuilding Corp.
and its liquidation.
Commission Chairman Robert
E. Mclaughlin overruled the OBJ
lection and indicated a court Or
der would be sought to produce
the testimony.
Sees Liquidation Pattern.
Mr.. Harrison said his purpose
was to show "a continued pat
ern" of thought to be applied
to Capital Transit, of purchase
of properties by the Wolfson
group with an ultimate aim of
liquidation "at a substantial
profit"
Transit Attorney Edmund L.
Jones objected to the line of in
quiry on grounds it was not rele-
want and not within the juris-
diction of commission inquiry.
He said it was "a matter of prin-
ciple with us" and that he would
instruct the witness not to an
swer any questions relating to
the liquidation of shipyards.
Mr.. Jones also observed that
many shipyards were liquidated
after the cessation of hostilities.
Mr.. Mclaughlin said the COM
mission had considered it within
Its jurisdiction to inquire into
the business philosophy of the
group. He said an attachment
for contempt proceedings may be
called for to produce the testi-
mony.
Mr.. Jones said that if the
questions are ruled relevant and
pertinent, Mr.. Weinstein would
testify.
Mr.. Harrison's questions in
cluded:
Whether Mr.. Weinstein was
one Of the purchasers of the
Shipyard, how long the Wolfson
group operated it after control
was acquired, what percentage
OF ownership the various mem
bers had, when the company was
llquidated, and what profit" the
Wolfson associates made by the
liquidation.
Quizzed on Stockholders:
Mr.. Harrison also questioned
Mr. WeinStein on how many ad-
ditional local stockholders were
added by the four-way stock split
OF Capital Transit in 1851 The
attorney recalled testimony at
the time indicating that split
might presumably have the effect
of broadening local participation
in company shares.
Mr.. WeinStein said he could
not answer this question def
nitely. Mr.. Weinstein also was
questioned on whether the COM
pany was making studies, in view
OF trends around the country, on
what it might face in the near
future by way of needs to re-
place streetcars with buses. He
said the company constantly is
making surveys and checks.
Mr.. Harrison wanted to know
what would happen to the COM
pany if it "payS out all its cash
now" and then finds itself in a
position of having to make major
capital outlayS on track replace
ment or conversions to buses.
Mr.. WeinStein said if such a
situation arose the company
would be able to finance it.
More questioning of Mr.. Vein
stein touched on the company's
plan for capital expenditures,
which has been put at $3.50, 900
for the first four months of the
year.
Mr.. Weinstein replied that this
did not indicate a trend. adding,
IF you are trying to get the fact
that we are holding back on cap
ital expenditures, there is moth
ing to that"