Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-04-21
Sc Million Available
To Liquidate Transit
Stockholders
Receive Last
Annual Report

More than Sc million in cash
will be available to start pay
ments of liquidation dividends
after August IA if Capital Tran
sit Co. goes out of business.
This was the highlight of a
month-old last annual report"
sent by the company to its stock
holders before the firm began
discussions with lawmakers on
the possibility of remaining in
business.
E. c. Giddings, etc vice preSi-
dent. said the document had
been mailed about March 9 to
stockholders. but had not re-
ceived general publicity.
After the report was mailed,
the Capital Transit manage
ment, at the request of House
Commerce Subcommittee, pre-
Sented l6 terms upon which it
would consider remaining in
business. and finally agreed with
the subcommittee upon a sharply
reduced version.
Awaits Action by Rules
The agreement, which would
keep the company in business
with tax relief and a speedup
public utilities commission fair
setting procedures. have been APP
proved by the House Commerce
Committee and is awaiting ac-
ton by the Rules Committee and
by the House itself.
The company report to stock
holders. covering the year 1855,
said a substantial first liquidat-
ing dividend" would be paid soon
after August IA. when the COM
pany's franchise and charter are
scheduled to die under present
legislation.
Signed by Louis E. Wolfson.
controlling stakeholder and board
chairman, and j. A. B. Broad
water, etc president, the re-
port said the company would try
to recapture about ST. million in
Federal income taxes for 1858.
Comments on Figures
"Some of the amounts to be
claimed" the annual report ex-
planned, represent costs incur
red by predecessor organizations
more than SO years ago and Of
necessity agreement must be
reached with the Internal Rev
enue Service with respect to all
such items"
Commenting on figures pre-
viously disclosed which showed
a net loss of 81 ,402, 900 for 1855,
the report said:
while indicating a loss. they
do not reflect the ingenuity ex-
ercised by your management in
the last six months of 1855 to
recover the added burden of in
crease wages and other COSTS
The legislation killing the
company was passed during last
summers 52-day transit strike,
and produced labor settlement
negotiated by the District Com
misSionerS.
Points to Economics.
stringent economies were
effected as was to be expected
of company in its last year of
corporate existence" the report
continued. THE loss of Sl.402,-
600 may be attributed to the
charge of extraordinary depre-
citation of track and roadway
facilities and adjustment of Fed
eral income taxes Of prior years"
The report said that except
for these special charges" the
company would have shown a
profit for the year despite strike
losses.
While the House was prepar-
ing to act on a measure to keep
the company in business, the
Senate District Committee sent
to the Secretary of the Senate
for floor debate a measure to set
up a publicly-owned transit au-
thority to take over the system
next August IA. This left the
strong possibility of a deadlock
between the two houses of Con-
greSs over solutions of Washing
tons transit crisis which, under
present legislation. would leave
the city without public mass
transportation next August IA.