Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-08-16

lUlhkuC, MI. WOllSOu 6hlQ, 6ul
II have to put most Of the blame
lon the Public Utilities Commits
Ision. I'm sorry the President
didn't blame them. "
He explained that, In his
opinion, the commission s.has
mot looked out for the public
interest as it should"
The financier added:
They tthe utilities commits
Ision) and Congress have. in
'leffect, passed a law that win
.lplay havoc with utilities systems
in the District Of Columbia. This
law is against the capitalist
system. It was based on PUC's
anxiety to hurt Louis Wolfson.
Iibut it viii end up hurting the
District far more.
Sees Tremendous Error
I'm going to predict that
this whole thing is q tremen-
Idous error. It will cost the city
millions Of dollars for a transit
authority. because who'll come
lin with private money now and
try to run q transit system In
Washington?
TITS been the utilities cosn-
missions contention that the
District couldn't support q $40
million rate base and allow us
Ito earn GA per cent. How are
they going to be able to support
q $40 or $50 million rate base?"
| In event CTC goes into piece
meal liquidation. Mr.. Wolfson
predicted the stockholders might
conceivably realize as much as
$24 or $25 q share. This. how
lever. he characterized as "a
lchance.
| The transit board chairman
revealed that. several months
Iage, Investors Syndicate made
ian independent appraisal Of 10
major pieces Of etc real estate.
These parcels, carried on CTC's
books at 50 million, were rated
Iby Investors Syndicate as being
worth more than $40 million, Mr..
IWolfson said.
I'VE also have other properties
that weren't included In the
appraisal" he added.
Liquidation Breakdown
Mr.. Wolfson said q study made
by his financial advisers indicates
that more than SIC million"
would certainly be realized by
ICTC in event Of Liquidation
other than sale to q successor
company. He said the breakdown
goes this way:
There win be q liability Of 50
million on ripping up the street.
car tracks and resurfacing the
streets. In other words, sale Of
steel for scrap will fall about So
million short Of paying the paw
ing bills.
Pending injury and damage
suits totaling 50 million prob
ably viii be settled in the neigh
borhood Of SIS million another
liability.
Contingencies and liquidation
expenses win cost another 81
million.
These liabilities win total $4.5.
million.
The book value Of $22 million,
minus $4.5 million liabilities
|itemized above will leave about
SITS million. Allowing 81 million
hidden liabilities, this would
leave SIS million. MFR. WoIfson
characterized this as q rock
bottom" figure. and repeated that
the total undoubtedly would top
SIC million.
Despite this. he said. he will.
urge the stockholders to enter
tain any offer Of $14.4 million for
continued operation Of the COM
|pany, provided 81 per cent or
more Of the ownership is In
Washingtonians' hands.
Includes City Operation
This applies. Mr.. WolfsonI
added. whether the new opera
tors are private investors or the
public at large: in other words,
municipal operation.
The financier said also that
he wished to spike the rumorl
that he has become rich OF
Capital Transit.
They claim I've gotten $35I
in dividends on the cid stock
which I bought at $40. But this
lis the gross--not the net" he
said.
"All this time. my tax bracket
has been 80 per cent or higher
Say it's been 80 per cent-theI
minimum-all along. All I've
gotten personally, after taxes,
lis 81. I still have $l3 Of my
original $40 invested"
Translating the financier's
figures into the present stock
values, this means he has netted
SITS on a IS investment and
still has 1925 a share tied UP.
Money From Liquidation
But when we close out--at
SIS a share on the new stock
I'll get SAT out, and 1t will be
subject to capital gains tax"
Mr.. Wolfson continued.
"I1l make my money on
| liquidation"
The CTC chairman was asked
whether he bore any malice
toward anyone in Washington
as a result Of his experience
here.
"iso malice" he replied. Just
regret. I hate to see the en-
ployes losing jobs and seniority.
/ hate to see the public paying
millions for a transit system"
Then he grinned.
But I'm happy to see the
stockholders making money"
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