Evening star., 1955-10-09
New Bus Firm Moy Offer
SIS Per Share for CTC

/ hours after Mr.. Stempil's an
nouncemerft was issued, Mr..
Howard said. II respectfully ask
them TO withdraw me.
He said he had authorized use
OF his name casually without
realizing theh possible embar-
rassment 1t might cause Mr..
Hayes. or even Mr.. Hayes. in
volvement. II wouldn't want Mr..
Hayes embarrassed" he declared.
Some time later, Mr.. Stempil
said he had not been notified of
Mr.. Howard's withdrawal. and
declared he would ask Mr..
Howard to reconsider. II neces-
sary. Mr.. Stempil said. he would
urge that Mr., Hayes disqualify
himself from consideration Of
the case.
New ORGANIZATION
| Washington Rapid Transit
System was first organized dur
ling the recent transit strike by
mfr. Stempil. Mr.. Diggs and Mr..
Young. with a capitalization Of
l$5. 600.
/ Yesterdays announcement said
Ithe capitalization was being in
creased to $40 million. with
shares to be sold at S. each.
/ MIR. Stempil and Mr.. Diggs
lsaid they hope the new company
Iwill be able to buy out Capital
Transit.
Mr.. Stempil said Tuesdays
Ioffer to Mr.. Wolfson will be in
excess Of an earlier offer he
made on behalf Of the First
State Mortgage Co.. Of Miami.
Iof $11.06 q share for 81 per
tcent of the stock plus 400 shares.
OF the new offer. he said.
were making it for substan-
italy more pretty close to
1915"
He said Washington Rapid
Transit is ready to buy just the
shares owned by the Wolfson in
terests or is prepared to make
Ian offer for all of Capital Tran
sits $50. 900 shares. Mr.. Wolfson
has said he win not accept any
Ioffer which does not apply to all
IC. T. C. stockholders.
II the effort to buy c. T. C. is
unsuccessful Mr.. StempiI said.
1--WE have the financing"
Discuss Profit
| Discussing possible profit from
ian investment in washington
transit. Mr.. Stempil. echoed by
Mr.. Diggs and Col. Collins. de-
clared. This is not q specula-
Ition. It is a long term invest
ment. We are not looking for an
immediate return. It's a long
range proposition to bring the
riders back"
II that can be done. Col. Col
Inns said. "the profit and divi-
dens viii take care OF them
selves.
Mr.. Diggs said the new COM
pany plans to increase service.
get downtown auto parking re-
duced and hopes to cut fares to
rs cents. IF we increase the
service" he said. II think well
Iget back our money"
He said the group IL consider
ling establishment of perimeter
parking around the downtown
tarea for 40 or so cents, with q
lpass allowing unlimited riding
downtown FOR parkers.
Mr.. Diggs said that on the
basis of an engineering study
'Imade for other interests earlier
this year, the new company
IIhopes to operate with q maxi
'lmum capital investment Of so
million and to make profits
ranging from 5 to Z per cent.
I Steelman's Interest
/ DR.. Steelman, who was named
..Iby President Truman and Presi.
dent t-elect Eisenhower to CARR
on as a White House advisor
during the transition from q
Democratic to a Republican ad-
sministration. Is now private
consultant on economic matters
He said he had joined in the
venture out of a desire to "co-
'loperate in any way possible with
/; Whatever group is selected by
, the city fathers" to provide fu-
, lture mass transportation for
|, Washington.
/ Quoting several Of the new
iIcompany's promoters. DR.. Steel
,lman said. Prom what they've
.ltold me. apparently they do have
lit soundly financed"
Disclaiming any present per-
1sonal investment, he said, How
deeply ! 60 into 1t viii depend
\ ion whether the city fathers de-
. eide this is the right thing for
Washington"
II Mr.. Stempil said the new COM
, Ipany is ready to assume Capital
sITransit's responsibility - esti-
mated at IS million--for tearing
-Iup streetcar tracks here.
!. The Public Utilities Commits
sion has asked that applications
for the Capital Transit franchise