Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-03-13
Capital Transit Seeks
New Fare Increase,
Stockholders Learn
By Donald B. HodIey

Capital Transit Co. is getting
ready to ask the District Public
Utilities Commission for another
fare increase as its customers and
income continues to decrease, the
annual report to stockholders
disclosed yesterday.
Loss of patronage has more
than offset an increase of almost
SO per cent in fares during the
five years since Louis E. Wolfson
and his associates acquired con-
troll of the company. Revenues
for 1854 sank to $26.714,053 COM
pared with $29,167, ACT in the
previous year and $28. 405,777 in
1949.
When the Wolfson group from
Florida acquired control from
North American Co. late in 1949.
transit riders paid Is cents cash
fare, 35 cents for three tokens
and SITS for a weekly pass. Now
they pay 20 cents cash fare, 80
cents for five tokens and rs
cents for a weekly pass which
also requires 10 cents a ride in
cash.
Assails Decisions
The annual report, signed by
Board Chairman Louis E. Wolf
son and President j. A. B. Broad
water, complained that 1.-The re-
cent history of local rate-making
decisions affecting your company
has always resulted in a lesser
fare than that requested by the
company. AS consequence. the
company has had to return to
the commission frequently"
Pointing to the last fare in
crease on January 81, 1854, the
report added: The decision of
early 1854 was no exception.
Your company is now faced with
returning to the commission for
another rate request, much as
1t dislikes to do SO. We trust the
commission, in future rate pro-
ceedings. will take notice of past
errors and subscribe to the COM
pany's request"
On a more optimistic note,
however, it said: AN important
development in 1854 for your
company has been the noticeable
change in the attitude of public
officials that this company and
its shareowners have rights as
erulng to those participating in
the private enterprise system
upon which America has been
built"
August Agreement
The report said that since a
memorandum of understanding
was reached with the commits
sion last August, your company
has had less reason to publicly
assert itself in a vein that adj
mlttedly had no popular appeal
although in principle it could not
be denied as being the proper
thing to do"
Under the agreement, the
company cut it's dividends from
40 cents to 20 cents quarterly
IN the last half of 1854. For the
f1rst three months of this year it
already has restored the rate to
80 cents and the report expressed
the hope that conditions will
warrant return to at least a
accent quarterly rate.
The commission insisted that
the company reduce it's dividend
rate after becoming alarmed
that continuing dividends well
IN excess of income might fur
Their deplete the cornpany's re-
sources.
Net Income Down
Even with the cut in diyi-
dends, 1854 payments of ST.
152, 900 were far greater than net
income of S638,32S. In the pre-
v1ous year the company paid
81 $50, 900 in dividends and
earned only $96O,258. In 1852
Is paid $3,744,O0O of dividends,
including a special disbursement,
and earned $1.059,322. The Wolf
son group took over after a long
period in which dividends were
much less than earnings.
The Accent quarterly rate, to
which the company hopes to re-
turn, amounted to $1.60 a year
or the equivalent of $6.40 a
share on old stock existing be-
fore it was split 4-for-1 in 1850.
The company paid So a share on
old stock.
Referring to an examination
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