Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-02-26
Capital Transit
Bid Prepared
'ByFox Group
House Unit to Get
Formal Offer at
Hearing Thursday
By HECTOR MCLEAN

A formal offer to buy out the
Capital Transit Co. will be pre-.
scented before a House Com
Imerce subcommittee hearing al
10 am. Thursday by Edward r
Colladay. attorney for Morris
Fox, president Of B. & F. Trans
Iportation Co.
/ Mr.. Colladay has a conditional
Ipromise Of a So million loan from
the First National City Bank OF
New York and has been attempt
ling to work out a deal to buy
|CTC with representatives Of its
controlling stakeholder. Louis E
Wolfson. Florida multimiilion-
aire.
With lawmakers hoping des-
Iperately that a new private OPP
orator may come along to keep
them from having to put the
transit system under Govern
ment ownership, Mr.. Colladay
said yesterday he plans ito pre-
sent the offer and ask for their
approval"
Franchise Dies Aug. IA
Under present law. the COM
Ipany's franchise and charter
will die on August IA. Mr.. COL
Eladay said he will ask for a new
franchise containing assurances
that the company will be al
lowed to earn a fair return" on
Its investment. .
Also, he said, he win ask that
the company be exempted from
about 81 million a year in Dis
|trict taxes. He indicated. how
ever, he would agree to a pro-
vision chat the taxes be charged
but not paid unless the company
learned It's fair return"
Also, he said. there would have
to be a provision so that the
cant delay us" when the COM
Public Utilities Com m isio n
cant delay us" when the COM
Ipany asks for permission to raise
its fares.
MIR. Colladay said he had con-
ferred Friday with j. A. B.
Broadwater. president of etc.
and the company's general coiIn-
sci. Edmund L. Jones. Asked IL
he was making progress in at
tempting to work out q deal. he
said. They haven't. discouraged
|us."
Reported Finance Plan
His plan repeatedly is TO use
the SO million for a down pay
|ment on the CTc stock and pay
lofT the rest of the sl8 or $40
million involved by issuing 10
year company bonds TO present
stockholders after che new
owners take over
One other potential private OPP
orator is Max M. Kampelnan.
attorney for a group of Mime
apolis investors who want to
move into Washington and run
an all-bus operation. abandon
ing the streetcar system.
Mr.. Kampelman has asked the
District Public Utilities Commits
sion to issue his newly formed
District Transit Co. permit and
to recommend that Congress
grant 1t a franchise.
He still, however, is trying to
work out with the commission
ia detailed statement of desired
operating conditions to be In
Icluded tn the franchise. and to
persuade more Washington in
ivestors to back the company.
| Chairman George E. c. Hayes
lof the utilities commission said
yesterday the agency had asked
Mr.. Kampelman for more proof
of his ability to get enough buses,
and whether he would not need
$50 more than the 900 proposed.
i Loan Guarantee Studied
/ Last night. President Samuel
Spencer Of the District Board OF
Commissioners said the board
has not yet decided whether Ii
should recommend that Con-
gress authorize 81 million loan
guarantee requested by Mr.
Kampelman's group. The board,
he said. win wait to decide until
Mr.. Kampelman has satisfied
the utilities commission on all
other matters.
| Interviewed on Report to the
People over Radio Station
IWWDC. Mr.. Spencer said, This
loan raises some rather difficult
and far-reaching questions of
policy"
Congressional support for the
f$4 million loan guarantee came,
however. from Senator McNam-
ara. Democrat of Michigan. He
said this would be preferable to
the proposed Washington Met
Iropolitan Transit Authority
which the commissioners have
asked Congress to set up in case
no satisfactory private operator
lis found.
/ He has, he said, some serious
reservations" about the bill and
would prefer to see private own
Iership continued, even at the
price of the loan guarantee.
l~ssE~s< sx~ s~~.--