Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-03-04
CTC Petitions
Court 10 Lift
Dividend Ban
Utilities Commission
Exceeds Authority,
Company Contends

Company Contends
The Capital Transit Co. today
contended the Public Utilities
Commission has no authority to
interfere with action of the utili-
ties Board of Directors in declar-
ing a Accent quarterly dividend
and redeeming a $3,7 million
bond issue.
The contention was made by
Attorney Edmond L. Jones, rep
resenting the transit company, at
a hearing before Judge James M.
Curran in the U. S. District Court
for the District of Columbia.
Judge Curran is being asked to
dissolve a court order temporarily
restraining the transit company
from paying the dividend and
redeeming the bonds.
Calls Interference Unjustified.
Mr.. Jones argued that the
commission has no powers other
than those expressly given by
statute. He asserted no law gives
the commission the authority to
interfere with the dividend and
bond action.
AT one point, Judge Curran
remarked that a 80 per cent re-
ported return to stockholders on
their original investment is
pretty high"
When Mr.. Jones declared:
THAT has nothing to do with
this case" the jurist retorted:
1T does have if the court is
convinced that all these people
are doing is milking this COM
pany for all they can get out
of it,"
Stock Value Higher.
Mr.. Jones agreed that many
stockholders have received in
dividends more than the original
$50 per share they paid for the
stock.
But. he declared, out of ap-
proXimately 1000 stockholders,
there were about SIS who paid
500 or more share as the
value of the stock rose.
Mr.. Jones declared the transit
company is in excellent financial
condition and said that by re-
deeming the bonds the company
would save more than SIS mil
lion in interest figuring the ma
turity date of the bonds as 1864. |
He scoffed at fears that the
company was liquidating its as
sets preparatory to going out of
business, with. consequent dele
FERROUS effect IN the public
welfare.
Cites 81 Million Spending.
He said the company had
spent a total of 81 million in
1852 and 1853 for new equip
ment and asked if that indicated
that the company was figuring
on dumping the transportation
company on the public.
Judge David A. Pine of q. s.
District Court for the District
of Columbia issued the To-day
order last Saturday on the ap-
plication of the commission.
Mr.. Jones also has charged
that the commission misled
Judge Pine in its arguments that
the company'S latest financial
moves will impair the company's
cash position and cause the pub
lie irreparable damage.
Conference Concluded.
Three-way discussions among
the Utilities Commission. the
District Commissioners and the
transit company on mass transit
and traffic problems, meanwhile,
were concluded late Yesterday.
Commission Chairman Robert
E. Mclaughlin announced that
each participant will file his own
report with the Senate subcom-
mittee investigating District
transit problems by Monday. The
reports will be, in effect. analyses
of a recent series of recommen-
dations by Leslie Williams, a
Philadelphia traffic consultant
retained by the commission.
Mr.. Mclaughlin indicated the
relations between the commission
and transit officials were not too
strained. despite the pending
court controversy between the
two parties.
Sees No Compromise.
The chairman said that, while
= j. A. B. Broadwater, Capital
Transit Co. president, announced
at the outset that he hoped the
conference atmosphere would be
cooperative, there was no spirit
of compromise on the part of
Capital Transit Co."
Mr.. Mclaughlin added that
the company position seemed to
be: Anything that might bene-
ut Capital Transit, they were fer:
and anything that would cost
them money, they were 'agin.'"
Transit officials remained espe-
cially adamant, the chairman
said, on the suggestion that the
company provide service at re-
duced cost to connect users of
proposed fringe parking lots with
the downtown area.
The company, Mr.. McLaugh-
lin said, should consider lower
fares of this type since it would
benefit by having fringe lots
keep much traffic of downtown
streets thus speeding transit
service.
Mr.. Broadwater countered,
however, that the lower rates
would discriminate against regu-
lar, transit riders, who, in effect,
would be substituting fringe-lot
users.
The company official afterward
characterized the meeting as
very friendly and amicable."
Suggests Partly in Use.