Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-08-04
Capital Transit
Local Control
Is Discussed
Secret Tulks Held;
Wolfson Group to
Keep Its Stock
By John w. Stepp

Secret top-level conferences
looking toward REIMBURSEMENT Of
control by Louis S. Wolfson in
Capital Transit Co. are nearing
conclusion, it was learned today.
The discussions, which have
been in progress for several days,
are being held by the District
Public Utilities Commission
members and company repre-
sentatives. So secret have they
been that the officials involved
have refused to disclose even
where they are being held.
The public announcement on
the results of the conference. If
any, may be made later in the
day.
It was understood that the
commission-inspired proposal in
wolves reshuff1ing the company
Board of Directors to give
greater representation to purely
local interests.
No Stock Sale Planned.
1t was further understood that
no sale of transit stock or the
company itself is contemplated.
If a reconstruction of the di-
rectorS' board comes about it is
uncertain what Mr.. WolfSon's
precise position in the company
would be. At present he is chair
man of the Board of Directors.
What obviously is in the COM
missions mind is company di-
'rectorship which the commits
sion would feel more sympathetic
to the community interests.
Since 1949 when Mr.. Wolfson
bought control of Capitol Tran
sit. the company's financial
practices have been challenged
almost continuously by the reg
ulatory body. Congressional COM
mittees and public spokesman.
Investigations to date have
proclaimed the operations of the
Wolfson interests legal, but
criticism has been directed
against the company. Chiefly
open to challenge has been a
free-handed policy of declaring
dividends since 1949. These
dividend declarations have sue
ceeded in whiting the COM
pany's SO million surplus down
to less than So million in the
last five years.
Data Prepared for Court.
The commission, after chal-
longing these policies in court.
is even now preparing findings
growing from it's recent investi-
cation to submit to U. S. District
Court for the District of CO.
lumbia.
In the recent commission
hearings Investigating the COM
pany's financial policies ques-
tioning of transit officials heavily
implied that the directorate has
been dominated by Mr.. Wolfson.
Since the millionaire Florida
investor bought controlling in
terest in the company the Is
member board has been made
up largely of his business asso-
ciateS.
The board is now composed of
Cecil and Sam Wolfson, brothers
OF Louis Wolfson; Robert E. Har-
vey, former vice president and
controller of Capital Transit, who
was brought into the company
by Mr.. Wolfson and now is a
high official in another Wolfson
enterprise; j. A. B. Broadwater,
transit president, and Doran S.
Welnstein, transit executive vice
president. Elkin B. Gerbert, long
time business associate of Mr..
WolfSOn.
James H. Flanagan. transit
vice president and controller,
hired by Mr.. Wolfson from the
Public Utilities Commission:
Robert Baker, executive vice
president of American Security
d Trust Co.. whose facilities are
used by the transit firm; Frank
E. Weakly. chairman of the di-
rectors board of Washington
Properties; E. c. Giddings, an
other transit vice president and
a holdover from the pre-
Wolfson transit management.
William B. Bennett, retired
transit company vice president
secretary; G. Thomas Dunlop,
retired attorney and former
general counsel; j. Edward
Heberle, retired vice president
and controller, and Edward D.
Merrill. retired president.