Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-09-02
Cooperative Launches
Move to Operate etc
Insurance Firm, Transit Union Fund
Seen as Possible Financial Sources

The newest bid to take over
the dying franchise of Capital
Transit Co. next August "A was
under way today.
It was launched last night at
a meeting sponsored by the Po-
tomac Cooperative Federation
on q proposal to operate a tran
sit company in Washington as a
cooperative. or limited dividend.
corporation.
The principal speaker, and ia
ther of the idea, was Gregory
Hankin, New Deal member Of
the District Public Utilities Com
mission from 1871 to 1874.
The proposal was spurred by
a promise of potential financial
support from Murray D, Lincoln.
president of Nationwide Insur-
ance. the name adopted yester-
day by the Farm Bureau Insur-
ance Companies of Columbus,
Ohio. The firm has more than
8 million policy-holders in Is
States and the District and has
assets Of more than $3.50 million.
It also has a record of financing
cooperative ventures.
In a telegram read at the
meeting in the community room
of the Washington Post, Mr.. Lin
coin said, IF a sound organiza-
tional and financial plan can be
developed and can win the sup
port of the riding public, business
firms, transit employees and the
District government, ] feel sure
that our board Of directors will
be interested in considering ways
in which we might be Of assist
ance."
To Draft Application
Oliver Stone, president of the
federation ian organization of
IA area co-operatives) and Mr..
Hankin said they plan to draft
articles of incorporation. bylaws,
proposals for stock and bond
issues and an application to the
utilities commission which must
be filed by October 10.
Mr.. Stone said the federation's
executive board will consider
participating as an organization
at is next meeting on Thursday.
Favorable action was indicated,
he said. by expressions Of in
terest from local cooperative
movement leaders at last nights
session.
The possibility Of further I'm
ancing came from Walter j.
Bierwagen. president Of the ALL
union Of Capital Transit work.
ers. who just ended a 52-day
strike.
Mr.. Bierwagen, who also is
president Of the Greenbelt Md
cooperative organization. said
some investment might come
from the unions 81 million
pension trust fund when 1t
comes under complete control Of
the union next April IS.
He said, though. that such in
vestment would be only for a
short term to get the proposed
company started and would be
limited to the purchase Of in
dentured bonds.
But, he warned, this union
Is not interested if the people
are not interested" Citing re-
ported losses to doctors and den-
fists because Of lack Of transit
during the recent strike, he
said:
cit is essential in sheir own
self interest that the business
community should do something
about the transit system and not
take potshots at those who are
trying to do something
Replying to questions. Mr..
Hankin said his proposed COM
pany might be capitalized at a
maximum Of $40 million in stock
and $40 million in bonds. But,
he said, I'VE can have pretty
well-organized system for half
that and can operate with only
IS million"
He urged that the purpose of
the company should be to "op-
HrrT NF NIkI~