Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-02-13
I'd Group Gets
PUG. HEARING
On Transit Bid
Loon of s. Million
Pledged; KompeImon
Puts Up 81 Million
BY HECTOR MCLEAN

The second major applicant
to take over the dying Capital
Transit franchise today moved
in on the other groups hearing
and won a promise of immediate
consideration by the District
Public Utilities Commission.
Edward F. Colladay. counsel
for Morris Fox and the B. g. F.
Transportation Co., told the
commission he has a conditional
promise of a So million loan to
buy out control of the existing
Capital Transit Co. and was
promised a hearing this after
noon. This was to come as the
commission completed a morn
ing session listening to the plans
of Attorney Max NJ. Kampelman
TO establishment of a new all
bus system next August Is after
etc goes out of business by Act
of Congress.
Mr.. Kampelman, seeking a
permit" from the Utilities Com
mission and its recommendation
that Congress issue a legislative
franchise. said he had 81 million
from Minneapolis investors to
start in business.
Promise of 81 Million
Also. he said, he has the prom
ise of the New York investment
firm of Eisele g. King. Libaire,
Stout 81 Co.. to sell 81 million
of company stock to provide the
total of SIS million needed to
start out.
Mr.. Kampelman said, how
ever. that just in case the agree
ment with the underwater to
sell the stock should fall through
during the 90-day period needed
to set it up, the Utilities Com
mission should recommend that
Congress authorize a Govern
ment guaranteed loan of 81 mil
lion to the company.
Mr.. Kampelman said the 81
million from Minneapolis in
vestors would be supplied by
three groups. Each would put up
one-third of million if his COM
pany were granted the franchise
and arranged the underwriting
agreement.
3 Put up S333,0OO
Mr.. Kannpelman said 1888, 900
would be put up by Harry H.
Isaacs, millionaire president of
the American Iron g. Supply Co.,
of Minneapolis; another 1888 900
by Fred and Max Rappaport
owners of Napco Industries, Inc,
of Minneapolis. and the other
1888 900 by a group represented
by Simon Meshbesher, Mime
apolis attorney.
Mr.. Kampelman indicated Mr..
Meshbesher would put up
$58.333. The balance of the
money, he said, would come from
Samuel A. Feldman. millionaire
owner of a Minneapolis truck
ing company. $150,000; Sam
Golden, owner Of Harry's Cafe,
a major Minneapolis restaurant,
$4,000; Henry L. Meyers of ST.
Paul. $4,000, and Louis Gross,
president Of clothing firm and
director of bank, $4,000.
Donald A, Mccormack. vice
president of Riggs National
Bank and chairman of the
Washington Board of Trade S
Transportation Committee, gave
his "wholehearted Endorsement"
to the Kampelman proposal, as
did Edward r. Carr, president
Of the Board of Trade.
Mr.. Kampelman said B. M
LarrlcK, vice president and gen.
eral manager of the Twin Cities
Transit Co., of Minneapolis, is
prepared to participate in man
agement" of the new firm.
Would Retain Fares
He said the company plans
to operate under existing fares
OF the Capital Transit Co.
which will go out of business
by Act of Congress on August IA
Also. he said, the company
plans to take over most of the
employees of Capital Transit and
to deal with the union of those
workers. A 52-day strike last
summer lead to the legislation
killing the company.
Mr.. Kampelman said his group
plans to take over the union
See TRANSIT, Page AS
Dulles Flies TO Bahamas