Evening star., 1955-09-02
Cooperative Launches
Move to Operate CTC
Insurance Firm, Transit Union Fund
Seen as Possible Financial Sources

s"St bS
Seen as Possible Fl
The newest bid to take over
the dying franchise of Capital
Transit Co. next August IA 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
Iankin, New Deal member Of
the District Public Utilities Com
mission from 1941 to 1874.
The proposal was spurred by
promise Of potential financial
,upport from Murray D. Lincoln,
president of Nationwide InSur-
nee, the name adopted yester-
lay by the Farm Bureau Insur-
nee Companies of Columbus.
Nhio. The firm has more than
million policy -holders in l3
tateS and the District and has
ssets Of more than $3.50 million.
also has q record Of financing
operative ventures.
In a telegram read at the
,eeting In the community room
{ the Washington Post, Mr.. Lin
oln said, IF q sound organiza-
ional and financial plan can be
developed and can win the sup
,ort Of the riding public. business
irIns, transit employees and the
district government, I feel sure
hat our board Of directors will
,e interested in considering ways
n which we might be Of assist
cnce."
10 UH1It AppucatlOn
Oliver Stone. president Of the
aderation Gan organization Of
4 area co-operatives) and Mr..
-1ankin 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
.eSSion. s,.~
The possibility Of further fin
ancing came from Walter ].
.3ierwagen, president Of the AFL
union Of Capital Transit work.
ers. who Just ended 52-day
strike.
Mr. Bierwagen, who also is
president of the Greenbelt tMd.)
cooperative organization. said
some investment might come
from the unions a million
pension trust fund when 1t
comes under comnlete 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 dem
fists because Of lack of transit
during the recent strike. he
said:
"It Is essential in their 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 a pretty
well-organized system for half
that and can operate with only
$5 million"
He urged that the purpose Of
the company should be to "op-
crate a transit system econorn-
ically, to expand and improve
its service and to reduce its
charges to the point where the
rates are the lowest possible,
compatible with the mainte-
nance Of an efficient transporta-
ton system, responsive to the
needs Of the people"
Fares Under 20 Cents
The fares. he said. would be
less than 20 cents.
He suggested that stock own
ership should have as broad a
base as possible" With a stock
capitalization Of $40 million, he
proposed 100000 shareholders,
leach with an investment Of
$780,"
The stock, he said, might be
bought by employees Of the COM
pany, businessmen who might
buy from 100 to 1000 shares,
mercantile establishments and
real estate developers. Under
District law governing co-opera-
tives, he pointed out, each owner
Of stock would have only one
vote, regardless Of the number of
shares.
Under the law, co-operatives
may not pay dividends in ex-
cess Of 8 per cent" Mr.. Hankin
said. I'm view Of the fact that
MARYLAND STATES
BIS FARE HEARING