Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-12-16
Continued From First Page

But they made no oral presenta'
ton to the commission.
The Washington Transit Co.
operative, through Gregory Han
kin, its attorney and author o.
its plan, put on a lengthy pres.
entation, though. Mr.. Hankir
accused the commission of "stai
chamber proceedings" He tan
gled with commission counsel
LLOYD B Harrison. who cross.
examined him on the ability OF
his organization to finance Its
proposed operations. And he
spoke enthusiastically OF the
beauty" of the cooperative
plan.
The commission held a special
night session to let Mr.. Hankin
put on the testimony of John A
Kaye, president of Stanwood Oh
Corp, who had flown here
from New Jersey. Mr.. Hankin
said Stanwood has promised to
invest IS million in the Class A
voting stock of the cooperative
along with Wolf Oil q Gas Co..
Inc, which he said is to put up
an equal amount.
Stanwood and Mr.. Kaye, 1t has
been disclosed by The Star. have
been enjoined by Federal District
Court from selling the company's
stock in interstate commerce
MIR. Kaye. an ex-Wall Street
broker, has been barred by the
New York Supreme Court from
dealing in securities in that
State.
None Under Oath
Like all witnesses yesterday
Mr.. Kaye testified without being
put under oath. He told the COM
mission that all the money he
plans to invest in the cooperative
would come from the sale of oil
now underground in Pennsyl-
vania or "pledging" it as security
for bank loans.
He said none of the money
would be available until next
March. This, Mr.. Kaye said. will
be under a deal with "a Texas
drilling company" expected to go
into production on Stanwood
properties after the first of the
year" He refused to identify
the drilling company. to give
bank references for Stanwood
or to disclose its financial posi-
ton beyond a statement of its
underground oil reserves.
When Mr.. Tydings withdrew.
I. William Stempil. attorney for
Washington Rapid Transit Sys-
tenn, Inc, also a bidder for the
permit, asked for exclusion Of
the Tydings group. He said that
organization had come in at
the tail end of the beginning OF
these negotiations and now steps
lightly aside" The commission
made no ruling on this motion.
Abe Krash of the law firm of
Arnold, Fortas and Porter and
counsel for Morris Fox. president
of B. & F. Transportation. Inc,
said his client was prepared to
go ahead in opposition to Mr..
Tydings and his associates.
He said negotiations are under
way through a third party with
Louis E. Wolfson for Capital
Transit. Mr.. Wolfson. Florida
financier, is Capital Transit's
board chairman.
Both of these organizations
filed additional data supporting
their permit applications but
asked no opportunity to present
testimony.
Max M. Kampelman, attorney
representing another unidenti-
fied group. filed document CIV
ing more information on his or
ganization's plans.
With the presentation of the
new documents. the commission
made public the files on eac~
application.
That Of the B. d r. Transpor-
tation Co. disclosed that on Mo-
vember 16, Mr.. Fox had told the
commission that Capital Transit
could be purchased 1t not more
than SIS million. He also said
that II his company were given
the 60 ahead by the commission,
1t could make deal for the
present company and take over
operation at once. 1t said 1t would
like to reduce fares when the
Capital Transit franchise ends
next August IA.
Would Cut Price
The file also disclosed that
November 20 Mr. Fox said he
had been comforting with a rep
resentative of the controlling
management Of Capital Transit
and that he was ready to take
over the property at a price under
the $40 million figure at which
MIR. Wolfson said he would sell
the property to the city.
He said his group could UNDER
write $40 million to SIS million
Of a $50 million to $40 million