Evening star., 1955-07-13

i pelleVe tney VIII tender the
stock from $12 to SIS. That is
my personal opinion.
Senator Morse - Would that
not be very quick and effective
way of liquidating the company?
Mr.. Wolfson-How would it be
liquidated?
Senator Morse-You certainly
relieve the financial holdings of
all of the other stockholders ex-
cept yourself?
Mr.. Wolfson-Well, I am add
ing $4,000 shares. I am not
relieving. I am relieving 1900
stockholders from not getting
dividends and saying that they
do not want any part of this
setup. No one will invest money
without dividends.
Senator Morse-In view Of the
dividends that have already been
paid, would not your associates
be pretty well paid of under
that arrangement, and the loss
to you would be comparatively
little?
Mr.. Wolfson-The loss to me
could be great If I do not get
any return and I invest on the
basis of about 50 million addi-
tional money in here and take
no active part. No, I do not get
any dividends. The company
could go out of business and /
lose 50 million additional of my
money, and I cannot talk for
my associates. -.
Mr.. Wolfson-If you gentle
men could provide four indi-
viduals. they do not have to be
Senator Mcnamara Let us
continue.
Senator Morse-I am through
with this. This is your proposal.
one of your proposals for a solu-
tion of this problem. is it not?
MIR. WOlfson-It is one of the
proposals where dividends would
not be a problem for five years.
Senator Morse-How do you
reconcile 1t with your previous
testimony that you think stock
holders ought to get dividends?
Mr.. W0lfson-Well then. I will
be an individual stockholder
These four local people, civic
leaders, will know that they are
coming into this thing on the
basis for five years of no divi-
dends.
Senator Morse-Do all of the
earnings of the company during
that f1ve-year period get dis
tributed by way of lower fares
and improvement in labor
wages? :.
Mr.. Wolfson-We will 60 right
on the basis Of building UP any
reserve we carl--go ahead and
distribute part Of it to labor
we will build up the cash re-
serve as much as we can, but
still fight for the right that we
are entitled to a fair return on
the rate basis.
So think the best solution
for this thing, for the city of
Washington. 1t seems to be this
cost Of the stock. without realiz-
ing that the stock market has
really gone up in the last five
or six years, that imitation has
taken place, that the value of
the stock and what we are get
ting on the original cost should
not have any bearing. the $2s
q share.
AS long as am willing-and
] viii 90 ahead and do this
that any net benefit that I have
ever gotten out Of my invest
ment in dividends. paid to me
personally, I will make a chari-
table contribution to a charity
in Washington whenever I bene-
If1ted, so long as four other citi-
zens come in and are willing to
render, or keep their mouth shut
and stop talking. There is too
much talking going on in WASH
ington, but they won't put their
money on the table, and I am
willing to do it.
Recently I have been ap-
preached on a couple of occa-
sions by some interests that
want to buy us out. Our stock
is not for sale. unless the same
offer is submitted to all of the
stockholders. I will not run out
on stockholders as long as I
am put in trust as a director
of any corporation. or an Off
Ger of the corporation.
So, to get out of this thing
and get out of these headaches
and abuses that are put upon
my shoulderc, and my family,
the easiest thing in the world
to do is to walk out of the pic
ture. I will never do 1t unless
all of the stockholders have the
same opportunity I have.