Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-03-15
broadwater
Aims 10 Make
Transit No. |
Testifies on His Cool
As Firm Rests Case
Against Injunction

Against Injunction
j. A. B. Broadwater, president
of the Capital Transit Co., testi-
fed today it is his intention to
keep the company lin tip-top
shape" and make it the No.
transit concern in the country.
He testified as witness in the
injunction hearing before Judge
Edward M. Curran in the u. S.
District Court for the District of
Columbia.
The company announced to-
day it was resting its case in
opposing the order. Arguments
by both sides were to begin later
in the day.
Lloyd B. Harrison, attorney for
the Public Utilities Commission,
who was cross-examining Mr..
Broadwater, remarked dryly, 1--WE
hope you'll keep it that way"
Mr.. Broadwater rejoined that
he would not be able to eff you
keep me coming down here and
taking up my time"
Seeking Finance Curbs.
The commission is seeking an
order to prevent the company
from declaring a Accent divi-
dend to stockholders and
spending 3.9 million to redeem
outstanding bonds. The COM
mission wants such an order to
apply at least until an inquiry
into the company's financial
structure, scheduled to start to-
morrow, is completed.
Edmund L. Jones, company
counsel, asked whether the COM
pany had taken any action to-
ward partial liquidation. Mr..
Broadwater said there had been
no action to impair the company'S
ability to serve the public or to
jeopardize its financial position.
He testified that whereas the
company is required to spend 10
per cent of its income to keep
the property in repair, it spent
in four years $6.8 million more
than required and it also spent
81 million for equipment.
Expected Congratulations.
He recounted that when it was
announced that the company
was paying of it's remaining
bonds, he thought that the
utilities commission twas going
to call me up and congratulate
me, but instead, q ton of bricks
landed on me-"
Under questioning by Mr. Har-
rison concerning the dividend of
20 cents a share which amounts
to $384,000 a quarter and ST.
$4,000 a year. Mr.. Broadwater
maintained this would not mean
liquidation if the company had
an adequate cash surplus.
Mr.. Broadwater said that at
one time the American Tele-
phone & Telegraph Co. had paid
out more than its earnings in
dividends over a period of years
and at the same time was bor-
rowing money.
THAT company has a fixed
dividend policy" Mr.. Harrison
said.
I'm trying to have this COM
pany have a fixed dividend pol
ICY" Mr.. Broadwater rejoined.
"If the Public Utilities Commits
sion would grant the rate it
should grant. the $1.60 dividend
would be set
Sets Safe Cash Level.
Mr.. Broadwater said that be-
tween 100000 and $700 900
would be a safe amount of cash
with which to operate.
Robert E. Harvey, vice presi-
dent and controller. testified the
company expects to reduce its
wage costs by $187, 900 by reduc-
ing service on the Georgia ave-
nue. and Eleventh street trolley
lines and the Benning bus line.
j. Edward Heberle. a director
and formerly vice president and
controller, denied the company
had embarked on a process of
liquidation.
He testified that before Louis
E. WolfSon of Florida and his
associates took over the COM
pany he had raised his voice in
vain in directors meeting for in
creased dividends.