Evening star., 1955-07-18


that in the interview cited h
had also said that he was 100 pc
cent opposed to liquidation Q
amy corporation.
4 Demanded Assurance
| Mr.. Broadwater, president o
Capital Transit Co., TESTIFIED be
fore the Public Utilities Com
mission In the same proceeding
,Ithat he had made . speech at
Joint meeting Of the Public Utili
tiles Committee and Railroad
land Transit Lines Committee O
lthe Washington Board of Trad
lon February 26. 1852, in whicl
he said that the Capital Transi
must have assurance of return
Iof at least 71a per cent on its in
Ivestment, and that officials o
1.-THE company would not stant
idly by and see the stockholder
suffer financially or see the com
Ipany destroyed. transcript pr
I533-534). The president Of tn
company further testified in tina
proceeding that he had written !.
letter under date OF January 9
1884, to the Hon. Frederick @
Payne, chairman Of the Senat,
subcommittee, in which he said
among other things:
Under these circumstance
1.-The day is fast approaching whe,
private ownership would have II
lgive serious consideration as Il
whether 1t wants to continu'
Operation or whether 1t would b.
more prudent to surrender it
franchise and lquidate its in
Ivestment." transcript page 535
Formal Case No. 433l.
/ On June 6, 1855, the Capita
Transit Co. filed with the Publ,
Utilities Commission Of the Dis
Itrict of Columbia a request for 1
fare increase. The company
case was presented in public
hearing on June 81, % and "a
Cross examination is presently
scheduled to begin on July 25
1855. On July z, 1855, the Pub.
lie Utilities Commission issued 9
lpress release stating its concept
of its powers. This statement
indicated that the regular rate
case could not be concluded
forthwith but that a company
request to offset the cost of 9
new labor contract with a com.
pensating fare increase could bt
acted upon promptly.
The present stoppage of serv'
ice of the Capital Transit Co
began on July l.. 1855, aftel
expiration of a three-year con.
tract between the, company are
National Capital Local Division
Street, Electric Railway and Mo
tor Coach Employees Of America
Throughout the negotiations fol
a new labor contract, the com
Ipany has maintained that i
could not grant merited increases
to its employees until 1t first re-
ceived or was guaranteed an in.
crease Of income.
Wolfson Statement
In a hearing before the Senate
District Subcommittee on Publ,
Health. Education. Welfare ant
Safely, on July u, 1855. Loui
[E. Wolfson, chairman Of tn
Board Of Directors of Capita
Transit Co.. in his prepare,
statement submitted to tina
committee, referred to the de
mand Of his striking employe
for increased wages and said:
! I'VE feel that they are entitle,
to fair increase" Later in tn
prepared statement is found tn
following paragraph:
without additional revenues
I'VE cannot begin to meet uniol
requirements. We cannot Civ
Jour employees more money TO
the simple reason that we don
have it."
This testimony Of the chair
man of the board clearly an,
|succinctly states the position
that management has taken con
Isistently during the efforts b.
the commissioners to bring abou
negotiations looking to the settle
ment Of the strike. This position
places the protection Of presen
profits about franchise obliga
Itions of service even to the poin
OF completely stopping transi
Iservice.
| Contrary to the compan,
claims of lacking money, tn
facts are that the compan,
learned a net income before in
1884; on May 81, 1855, had al
come taxes Of about $1,126, 900 il
learned surplus of $2,070, 800 an
cash Of $2,663, ,025: and on Apr.
H.. 1866, increased Its quarterl
dividend from 1920 per shar
(after 4 to / split) to 5000 pc
share.
In Public Interest
The facts herinabove state,
support the conclusion stated b
the Committee on the Distric
Iof Columbia in Senate Repor
mo. 1924, $50 Congress, I'd Ses
sion, at pages 81 and SO thereof
that the attitude of the presen
management indicates that
places private financial interest
above the public interest in tn
Operation OF Capital Transit c.
These facts together with othe
information that has been pre-
sented to the Commissioners lea,
them to the conclusion that tn
proposed legislation to repea
the franchise of Capital Transi
Co. is necessary in the publ
interest.
The power to take possession
Of and operate the Capita
Transit Co. property and asset
as may be necessary during tn
final year Of the franchise perio,
Lis regarded hv the Cnsnrnirsin,,