Evening star., 1955-07-26

AIlSW6IiHk CIldEBcS Uy bIic
Capital Transit Co. that he is
most responsible for the cur
rent streetcar and bus strike.
District Commissioner Robert e.
Mclaughlin yesterday described
an effort to oust the company's
president. j. A. B. Broadwater.
Mr.. Mclaughlin. former chair
man of the District Public Utili-
ties Commission, told the story
in response to a company state
ment that "he was even a party
to bringing pressure on Mr..
Wolfson Louis E. Wolfson. CTC
board chairman and majority
stockholder) to fire Mr.. Broad
water as the president of Capital
Transit Co." Mr.. Mclaughlin
said:
when the company ap-
preached the Public Utilities
Commission asking for some ar
rangement to dismiss suit we
had in court Ito stop the COM
pany from redeeming its bonds
the utilities commission as a
body said we had not been able
to work with Mr.. Broadwatcr.
Set As Requirement
1--WE said any arrangement
would involve Mr.. Broadwater's
leaving the firm. but we dropped
that requirement in subsequent
negotiations with Mr.. Wolfson. -
The negotiations led to the
memorandum of understand
ing" between the commission
and the company last August.
1t ended the suit, permitted the
company to wipe out its bonded
indebtedness and resume divi-
dend payments at a lower rate.
The Capital Transit statement
yesterday also declared that
Capital Transit Co. in the past
has resisted Mr.. Mclaughlin s
efforts to put one of his 'cronies
on the board of directors and to
retain his friends as public re-
lationS counsel"
Names Suggested
"One item of the memoran-
.dum," Mr.. Mclaughlin said
was that more local citizens be
put on the board of directors
of the company. The utilities
commission was solicited many
times for names of such men,
bers: AS recollect it, each men,
Der (of the commission) suggest
ed one or two names. I suggest
ed one myself, but none were
put on the board"
OF the public relations coun-
sci, Mr.. Mclaughlin said, 81
don't know what they're talking
about. I've never recommended
anyone for employment by any
public utility and I would not
consider doing So"
In its statement, the company
branded as a "figment of his
imagination" Mr.. Mclaughlin
charge last Saturday that every
plan that the management has
proposed for reorganization oi
the company has provided fol
acquisition Of the stock at book
value"
He knows management has
never advanced any plan fol-
reorganization" the company
statement said.
Commenting, Mr.. Mclaughlin
said:
%The whole community knows
that there were five plans pro-
posed at one time and later one
additional plan at the request OF
the Senate Investigating Com
mittee. All six envisaged the
stockholders getting out at book
value"
Backing up his comment, Mr..
Mclaughlin cited a booklet en-
titled Facts about Capital
Transit Company" by Mr.. Wolf
son. dated July IA, 1852. The
first plan proposed in the book
let suggested that Capital Tran
sit establish a single, metropoli-
tan area company and buy out
other companies serving Vir-
ginia and Maryland through
issuance of common stock or
cash purchase at a fair value. +"
The second plan suggested
establishment of a Government
owned transit authority to buy
Capital Transit and, perhaps,
other local companies with rev.