Evening star., 1954-11-26
wo|fson Ends
Transit Salary;
Weiinstein Out
Admiral colcIouqh
Named Director;
Zoe Dividend Voted

&OtAO 49, VO4AoOA4p SdP1tdl
Transit Co. board chairman and
principal stockholder, today an
nounced he is dispensing with
his $40, 900 annual salary as top
director Of the company.
His announcement came dur
ing the fourth quarterly meeting
of the transit company directors
board which took these actions:
/. Accepted the resignation Of
Doran S. Weinstein as executive
vice president.
2. Elected Vice Armiral Oswald
S. Colclough, dean of faculties
OF George Washington Univer-
sity, to succeed Mr.. Weinstein
on the board of directors.
8. Voted a 20-cent per- share
dividend for the final quarter of
1854.
Dividends Reduced.
In disclosing that he will
serve without compensation, eff
fective Immediately. Mr.. Wolf
son said he was prompted by
the fact that dividends have
been reduced under an agree
ment between the company and
the District Public Utilities
Commission.
Last August a memo of un-
derstanding between Capital
Transit and the regulatory body
specified that the dividends for
the last two quarters of 1854
would be 90 cents per share.
The same agreement stated that
the payment may BE increased
to 80 cents for the first quarter
of 1855 if the company chooses.
Earlier quarterly dividends
this year were 40 cents.
Cutting off his own pay, Mr..
Wolfson said in a prepared
statement, is Gin line with my
philosophy as ! have expressed
it on previous occasions" He
has said that where stockholders
are not getting their proportion
ate share of dividends, salaries
Of company officials should be
readjusted.
There was no indication that
any of his associates in Capital
Transit would follow suit, or
whether he will ;fsume pay
status if or when the previous
Accent dividend rate is re-
instituted.
C0lcl0ugh Praised.
On hearing of the company
decisions, Chairman Robert E.
Mclaughlin of the District Pub
lie Utilities Commission. issued
this statement:
"The action of Mr.. Wolfson
and the board of directors in
substantially reducing officers
salaries as well as current divi-
dends, is definitely in the public
interest.
"The commission has the
highest regard for Admiral Col
clough and welcomes the an
nouncement of his membership
on the board. The admiral's deep
interest in local transit problems
was amply demonstrated by his
willingness to serve as chairman
of the fact-finding board set up
to avert the threat of a transit
strike in the summer Of 1953."
The 20-cent dividend amounts
to nearly So million and applies
to $50, 1000 shares. Mr.. Wolfson,
his relatives and associates own
81 per cent of Capital Transit
stock.
Weinstein's New Job.
Mr.. Weinstein, 38, a close as
sociate of Mr.. Wolfson since be-
fore the last war. leaves to take
over the executive vice presi-
dency of another dominion of
the Wolfson business empire,
Devoe and Reynolds, Inc. in
Louisville, KY.
Devoe and Reynolds is one of
the largest paint and varnish
manufacturers in the world. It
has plants scattered throughout
the United States. Its main plant
is in Louisville.
MIR. WeinStein will be moving
into a job Of "far greater respon-
sibilities'' than those he held
with Capital Transit as its key
operations officer. His salary in
the transit post was $50. 900 an
nually.
There was no immediate hint
as to whether the Capital Tran
sit executive vice presidency will
be filled or remain vacant.
In Vice Admiral Colclough, the
(See TRANSIT, Page A-6.)