Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-10-30
Some Phases of the Current Gossip
on This Subject.
ADVANCE IN CAPITAL TRACTION STOCK
Results Of the Operation Of the
Washington Traction Company.


Some of the brokers dealing in the local
stock exchange are indulging in conjectures
in regard to the causes for the activity in
the stock of the Capital Traction Company.
Since the first of the month this stock has
advanced two points in the quotations on
the exchange. 1t is now at about 1884, and
has sold as high as 1O4 but the latter in
small lots. AS the dividend is 81 on share
of 800, at 1O4 the stock yields about 81
per cent.
1t is claimed by some that the present de-
mand comes from investors who are salts
fled with such a return on the money.
There has also been some mention, in the
current gossip on the subject, of the posi-
bility of an increase in the dividend, and it
is said in this connection that the net earn
ings show an advance for the past six
months over that of the corresponding
period Of last year. 1t Is also understood
that these figures show a falling off in the
receipts for the period of the summer sea-
son. which is taken to indicate that the
competition of the suburban facilities OF
the other company has had that effect.
1t is also pointed out that the Anacostia
line, with its 18th street and 4th street
branches, was not In operation until In the
latter part of June, and that, with this i'm
portant feeder in the system of the com
peting company lacking, the full extent of
the business capacity of the Washington
Traction within the urban limits cannot
properly be estimated.
There is a good deal Of talk among those
who give attention to the local street rail-
road situation as to the effect on both COM
panies of the result of the contest that has
begun for the street car traffic Of the Dis
trlct.
The Past Sumner.
The past summer has witnessed only the
opening Of such contest, for 1t was not
until the season was fairly started that the
Washington Traction was in full operation
in all it's branches. Even then it suffered
from the disadvantage Of new equipment
and the general difficulty Of bringing this
extent of street railroad lines under such
management that it could be run with eff
ficiency and economy.
1t is claimed for the new system that 1t
is gradually attaining and has practically
reached the smoothness of operation, ac-
curacy of service and economy OF admin
iStratiOn That comes as a result or per
fecting the machinery of management and
the liberal expenditure of money. At the
same time these results are being reached,
it Is pointed out that the extension of first
class street car facilities in sections sub
stantially hitherto without them Is result
ing in the development of those sections
and the increase in the patronage OF the
car lines.
Talk of Purchase.
While the above represents certain phases
OF the current gossip, tueIe are diso eAo@o
who still give circulation to the stories of
the probable purchase of the Capital Trac-
ton franchise by the Washington Traction
Company, it being represented that the for
mer Is needed to bring the other system
to a basis where the operating expenses
and the fixed charges. as far as the latter
include the interest on the bonds, can be
met by the earnings.
There Is still a gap between these two
points, but it is argued, on the one hand,
that the Washington Traction is not in a
position to acquire the other company, and
also that If it that 1t might prove
that the present was a rather high market
to buy in. as the earning capacity of the
Capital Traction Company has not been
fully subjected to the test Of the competl-
ton of the new system.
Whatever may be the view of the mean
ing of the recent changes in the quotations
of the stock Of the Capital Traction, or of
the possible relations of the two street car
companies of the District, it IS recognized
that taking it all in all, the people have
never before been so well served In this re-
spect, and also that the patronage OF the
street car lines now surpasses the record
of all previous years.