Evening star., 1923-12-10
RAPID TRANSIT CO.
COMES OUT AHEAD
november Figures Show Net
Income of S839.s7-Trad.
ing on Local Exchange.

my VII IoCdi ExCndnge.
inc Washington Rapid Transit
Company boasted a net cornora.o
income of s83s.s7 during November
according to statement by the Public
Clhtles Commission this morning
fhe company has been rather con-
sistent in showing losses, month h..
month, for the past year, a defci,
having been incurred for Noyemhsr
OF last year. while October's loss
amounted to s226.SO.
operating revenues Of the oornpanv
curing the past month amounted 10
s@o''oz' as against S25,ss9 for the
same month of last year, while on
Grating expenses totaled s25774 ard
~Z''2o7, respectively. The non-oner-
atlng income during the past month
amounted to S106, with deductinrs
aggregating 1854. 1N'i''''
me Washington Rapid Transit
company is now operating thirty-six
isSes' as compared with thIrty-four
| Iast year but covered only i36 500
ssta during the past month, as
against 1852 the correspondinr
month of last year. Passenpare
however, increased, a total of 32S.S17
iares being carried. as against 3o1,59S
last wear.
Heserve Bank Earnings Lower.
Earnings of federal reserve banks
Wiil De somewhat smaller this wear
man they were in 1922. Earning
assets have been kept low and fairiS
steady throughout the year and the
interest rate has been fairly low As
result the Treasury budget esti-
mates fix the franchise tax for tn.
year at 1000 600, compared witt. =.
ana actual payments of only $3.50:
The total net earnings available
last year for dividends. franchise tax
and surplus aggregated sI6,497736
The federal reserve act provides
that after per cent dividends on
pa aid-in capital stock of the reserve
oa oanks have been paid. and a surplus
capital stock has been provided for.
10 per cent of the remaining earnings
are to be paid into surplus. the bal
ance going TO the government as a
franchise tax.
The largest earnings of any year in
the life of the federal reserve were made
IN 1920, when net available for divi-
dends. surplus and franchise tax aggre-
gated Sl49.294,774. The total franchise
| tax paid that year totaled S60,724.742
hcials estimate franchise tax receipts
| this year at only s6.000,000, il seems
probable that net earnings available for
dividends. franchise tax and surplus
| may aggregate somewhat less than
| sIo.ooO,oO0 since 1t will require more
| than sl0.000,0o0 to provide for divi-
dends and surplus.
Trading on Local Exchange.
| Washington Railway and Electric COM
mon burst out afresh on the Washing
| ton Stock Exchange this morning, sales
or llj shares bringing a slight reac-
tion in price-from IS to 67l4 The
preferred issue Of the carrier was also
slightly off TO Tx on odd lot sales
Riggs National Bank was stronger
at 295, with thirtyfve shares chang
ing hands, and Railway As, the only
bond issue traded in. was unchanged
at 6912
All Of today's trade was made
after call"
| Loan About az Expected.
| Local bankers exhibited no undue
| excitement over the Treasury offer
| ing announced this morning. The
size of the loan and the interest it
bears, was pretty we'll established In
their minds already.
| The proceeds of the new issue to-
gether with the December tax pay
| ments. which Mr.. Mellon estimates
Twill total about SS30.000,o 900, will be
used to retire about s350,000,0 900 ma
turing certificates, TO pay $4,000. 900
Interest on the public debt. and to re
! deem approximately s60,000,000 of
war saving certificates.
Obligation of Depositors TO Banks,
| In his November letter to the bank
erS of New York, Secretary Gallien
! of the New York State Bankers AS
sociation devoted lengthy para
| graph to the subject of the above
1 ~ uyh iS NJ ir,%a
| est to the bankers of other states
that II is reproduced here.
] In the race that has been going
on for some years between banks for
large figures. the public has been led
to believe by the published invita-
tions to open accounts that banks
were a sort of philanthropic institu-
ton, and to considerable extent all
they had to do was walk in and help
themselves. For this ignorance the
blame. Competition has led to rates
of interest being paid that have
proved a heavy burden for many in
stitutions to bear-this is especially
preston occur, when plethora OF
loanable funds leads naturally to
lower earning capacity"
TT is supposed that banks in their
advertisements incorporate in them
briefly the obligation that a >depositor
owes to the bank where he decides to
carry an account. That it is up TO
him to maintain a good character. as
citizen and business man-that he
must believe in the sanctity of con-
tracts. that it is up TO him to maintain
a creditable balance-at least such
balance. at any rate, that iwll permit
the bank to earn enough to break
even in doing its part for him--to in
form him that it Is under great ex-
pense that the banking business is con-
ducted-usually with a large invest
ment in building and vaults, in de-
sirable location; good salaries for the
officers, who must be able men, If the
bank is to be managed successfully:
suitable and sufficient salaries for em-
ployes: expenses of management, sta
tionery. books. heat, light and other
items; the fact that the bank must
earn dividends for its stockholders and
that 1t is not safe to attempt to do
this by speculation. etc; try it-and
see the favorable reaction on the part
of the public. who will quickly realize
that high rates of interest paid for
deposits do not necessarily mean safe
tY for their principal"