Evening star., 1955-07-13
Conditional No-Dividend
PIon Offered by WoIfson


criticism, Louis z. Wolfson
proposed to the Senate transit
hearing plan in Which he
mould join four Washington
"ciDic leaders" In taking over
the company and operating it
under certain circumstances.
The tert of this excerpt from
the record of the hearing fol-
lotDs::
Mr.. Wolfson-At the meeting
with Congressman Mcmillan and
Congressman Broyhill ! told
them that this personal attack
on me is unfair and unjust. I
have never made any money In
Washington, D. C. I have no
other financial interests or in
vestments other than Capital
Transit.
This newspaper, I think the
morning paper. where they have
got some young fellow as presi-
dent and publisher that married
the boss daughter, whatever the
name is-keeps hammering
away at "Wolfson and his
dividends. Slicing melons, and
all Of that"
Here Is what ! would be will
ing to do. I can only talk for
Lou Wolfson personally.
We have a situation-we have
a situation here that dividend
policies seem to have been dis
turbing to every one here in
Washington. I am willing to do
this, to increase my invest
ment up to 20 per cent of the
total stock and pay the price.
If 1t takes up to SIS share, be-
cause I think the stock is worth
at least SIS share, if four other
so-called civic leaders per-
sonally and individually are will
ing to invest 20 per cent.
Moratorium on Dividends
We would not declare any div
1dends for five years, if the divi-
dends seem to be a problem. But
get rid of 1900 stockholders
where do not feel like am
dishonest-where do not feel
I am dishonest If I do not repre-
sent those stockholders like YOU
feel If you do not represent the
American people.
Let four so-called civic leaders
step forward and lay their money
on the table. I am willing to put
my money up and go ahead and
render service without compen-
satlon for a minimum of five
years. But you will not find them
because they have got a lot of
conversation around here, but no
action.
Senator Morse-We swill dis
cuss that proposal a little later
want you to explain to me
again this proposal OF yours to
nave four other investors come
forward and put money on the
line for the purchase of what
block of stock?
MIR. Wolfson-You have $780,
600 shares of stock outstanding, I
am willing to join four other in
dlviduals here in Washington-
they have to be local citizens-I
Will invest up to 20 per cent
Will invest 20 per cent, so I will
nave $4,000 shares of stock. and
since I now own, with my chill
dren and wife. about so, I will
add $4,000 shares of stock to
my holdings. in round figures.
Each one Of these individuals viii
buy $4,000 shares, We take ali
OF the stockholders out Of this
company,
Won't Serve on Board
I am willing to pay from s12
to SIS share. and I believe that
II the stockholders, the remaining
stockholders in the company
know that we are setting a policy
that no dividends will be declared
Tor flve years, they will tender
their stock. For a period of a
minimum Of five years no diyi-
dends will be declared. I will
not be on the board of directors.
Let these four men-and I
will provide seats-I will ask nv
brother to resign-I will ask
others to resign-let them replace
them on the present board of di-
rectors-let them go ahead and
render transit facilities for the
interest of the public. And I
am for them.
Senator Morse-What price
would they pay?
Mr.. W0lfson-$12 to $13, be-
cause we have had offers given
US personally on the basis of $12,
but I do not think $l2 could get
this stock. I am willing to pay,
to invest on my basis, up to SIS
with the understanding that the
stockholders know what arrange
r1ents we have, that no dividends