Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-02-26
Trunsit
Continued From First Page.)

said he intends to check very
carefully into all circumstances
of the latest Capital Transit
moves. Members of Senator
Payne's staff. as well as aides OF
Chairman Case of the Senate
District Committee. were on hand
for last nights meeting of the
utilities commission.
In paying of its outstanding
bonds, the Capital Transit Co,
yesterday opened the door to
payment Of $3.1 million in future
dividends to its stockholders.
Cash Put Up.
This sum in earned surplus
was set aside until the bonds
were wiped OF the books, and
now the company has put up
sufficient cash with the Union
Trust Co.. trustee of the mort
gage, to satisfy the bondholders
claims totaling $3,797 900.
Mr.. Broadwater announced
the company would call its
outstanding 4 per cent first
and refunding mortgage bonds.
Series A, due December /, 1864,
At their regular quarterly
meeting yesterday, the COM
pany's board of directors also
declared the regular dividend OF
20 cents per share. payable April
/ to stockholders of record
March IL.
IT will recommend the con-
tinuation Of the payment Of the
$1.60 annual rate of dividend
during 1854" Mr.. Broadwater
declared.
Payment Of the April / divi-
dend will total about 1894, 900.
according to Mr.. Giddings. He
explained the company had $3.2
million in earned surplus as of
January 81.
New Holding Company.
In another major step in the
fast-moving financial picture,
Capital. Transit's board yeSter-
day authorized the setting up of
q new holding corporations las
yet unnamed-to hold the stock
Of the Glen Echo Park Co.,
amusement park. and two pieces
Of real estate.
The two pieces are: Ninth
and Brentwood streets NE. con-
tanning IS acres. commercially
zoned, but unimproved. and
seven acres Of unimproved prop
erty at Littonsville. Nd. near
Silver Spring.
Mr.. Giddings emphasized that
this property is non-transit and
is not in the rate base on which
transit riders fares are fixed by
the Public Utilities Commission,
Statement by Company.
The company issued this
| statement:
1.-THE board of directors also
decided to divorce from Capital
Transit Co. the development OF
certain non-transit properties
by making a distribution in kind
In order to effectuate this. the
board directed the organization
of a new corporation to which
will be transferred the stock OF
the Glen Echo Park Co.. q
wholly owned subsidiary operat-
ing an amusement park in Glen
Echo. Md; the land on which
the park is operated. and other
non-transit properties no longer
used or useful in Capital
Transit Co.'S primary business
and not included in its rate base
for determining transit fares
The statement said the board
felt it was not practicable OF
desirable to distribute the nom
transit properties to, the approx
imately 1890 stockholders Of
Capital Transit Co. Accordingly
it said, the separate corporation
in exchange for such properties
will issue $50, 900 shares Of cap
ital stock direct to Capital
Transit stockholders on q share
for-share basis.
This distribution in kind
new company stock to Capita
Transit stockholders on a share
| for-share basis-will be made or
April / to Capital Transit stock.
holders Of record on March IL
Mr.. Giddings said the new cor
poration will have par value
shares Of 10 cents each, with 9
capitalization of SOC, 900.
Proverbial Money Maker.
| Glen Echo proverbially has
been a money-maker for the
Capital Transit owners.
| The company's. announcement
said the new corporation will
receive, hold and and manage
the non-tranSit properties "fol
the purpose of developing Their
normal and economic business
use outside the scope Of public
transportation" It pointed oul
the directors considered the
amusement park originally and
primarily had been organized Il
promote passenger traffic to the
park in the days Of open-ail
street cars.
"The board noted that with
the increasing use Of the auto
mobile the majority Of park
patrons now come and leave by
private transportation with the
result that the original reason
for owning the amusement park
as a part Of its transit operations
had virtually disappeared" the
announcement asserted.
In another development, Cap
| ital Transit fled with the Public