Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-02-14
Continued From First Page

Continued From First Page
onstrate that the board has not
Endorsed either proposal.
The Kampelman-Carr propos-
al calls for setting UP a new all
bus company to replace the
present streetcar bus system. It
would be financed by 81 million
lin cash from three groups OF
Minneapolis investors, who would
control the company through
Ownership of half the common
stock.
The other 81 million of COM
mon stock. plus 81 million Of pre-
lferred stock and So million in
debenture bonds. would be sold
to the public through the New
York investment firm of Eisele
& King, Libaire, Stout & Co.,
the commission was told. The
marketing agreement. according
Ito George j. Scully of EiSele &
King, would take 80 days to set
up after a utilities commission
permit is issued.
Just in case the marketing
agreement should fail to work,
Mr.. Kampelman said. the COM
mission should ask Congress to
authorize a 81 million Govern
ment-insured loan to help the
new company get into business
Conditional So Million
The Fox Colladay plan calls
for purchase of controlling in
terest in Capital Transit from
Louis E. Wolfson, Florida multi
millionaire. Mr.. Colladay said
he has a letter from the First
National City Bank of New York
giving conditional promise of a
I$3 million loan to buy the stock
Iif, among other things, the new
franchise to be issued by Con-
gress should be satisfactory in
all respects" to the bank.
Mr.. Colladay agreed to report
to the commission on his efforts
to negotiate purchase of the
IWolfson stock.
Mr.. Kampelman was asked to
return with further information
on three points raised by Com
missioner Robert M. Weston
"a draft of the legislative fran
chiSe he wants. financial state
ment on the investment bankers
and a detailed explanation of
where he hopes to get buses.
Mr. Kampelman and the COM
pany's prospective operating
head. B. NJ. Larrick. vice presi-
dent and general manager OF
the Twin Cities Rapid Transit
Co.. said they plan to buy all
new 51-passenger General Mo-
tors diesel buses coaches.
Disagreement on Number
And, they said, they should be
able to do the job with 900 to
1000 of the vehicles. Mr.. Fox
argued they would need 1900.
But. said w. Ralph Davis, dis
trict representative of General
Motors Corps Truck and Coach
Division. his company will be
able to produce only $50 new
buses between now and August
Is. And. he said. the number
will go down by so each week.
Mr.. Kampelman said he was
relying on GIN to help him find
used buses temporarily to pro-
vide the others the company
may need.
The total investment II the
company buys only 900 buses.
Mr.. Kempelman said. will be
$24.610.000. with $4,835, ZOO
needed for down payments of
10 per cent on buses, 40 per cent
on three bus yards. three garages
and for other equipment. OF
this. under present plans. all but
the 50 million in common stock
would be borrowed money. The
total investment would go up
at the rate of s22,500 a bus If
the company needed more than
900 buses, he said.
Transit fares, he testified.
would have to remain the same.
Mr.. Larrick. however. said they
would have to go up if the new
company suffers the expected