Evening star., 1931-12-15
CAPITAL TRACTION
DIVIDEND REDUCED
Quarterly Payment Of 81
Cents Ordered by Board
of Directors.
BY EDWARD c. STONE.


At the monthly meeting of the di-
rectors Of the Capital Traction Co., held
this noon it was voted to reduce the
quarterly dividend from 81 to so cents
per share.
The reduction at this time is consid
cred necessary owing to the keen COM
petition from the Cut-rate taXicabS
which has so seriously reduced the trac-
ton company'S net earning in recent
months.
1t was reported at tooays meeting
that net earnings were off about $4,000
in November when compared with the
same month year ago.
For the first 10 months Of the present
year net earnings showed decrease Of
S76,438.15. BY adding the November
decrease in net earnings to this sum, 1t
will be seen that the street car company
is about 100000 behind last years
profits in the first IL months.
This shrinkage In earnings from op-
erations has forced the company to dip
into surplus to meet part of the money
required for dividends. Under these
conditions the directors apparently de-
cidcd that in the interest of corServat-
ism these was nothing to do but lower
the payment for the last quarter.
The company paid quarterly divi-
dend Of 81 in the first three quarters Of
this year. With todays declaration OF
so cents per share, the company will pay
total of SO so per share in 1881
Capital Traction will earn about SO
per share for the year For the first
IL months it has earned about S265
per share. December is one of the best
months of the year on account of extra
Christmas street car travel. This should
bring the years net to So a share or
perhaps little more.
Company Increases Dividend
Following a meeting of the board of
directors of the Columbia Paragraph
Co. today the president, John c. Eckert
announced that the Semi-annual divi-
dend for the last six months of 1881
had been increased from the regular 3
per cent disbursement to per cent
This places the companys stock on
per cent basis for the entire year
1881. The dividend declared today is
payable January ! to stockholders of
record December 16
This action will be of particular in
terest in financial circles, as none too
many companies are increasing their
dividends in these days of business re-
adjustments, to say nothing of doubling
them.
Mr. Eckert, the president, was elected
president of the North Capitol Savings
Bank some months ago.
Pole Stresses Branch Banking.
Branch banking within trade areas,
or commercial zones, for developing
the national banking system and for
Strengthening the country'S banking
structure. was the major legislative pro-
posa! Of Controller Pole in his annual
report
The controller emphasized the steady
development of commercial banking
under State jurisdiction. declaring that
practically all commercial banking re-
lates itself to transactions in interstate
commerce.
Supervision Of security or investment
lfhl.ates CT national banks authority for
national banks to borrow from the Ma
tioH9l Credit Corporation even after
liabilities equal capital stock, permis-
sion to assess banks for examination of
trust divisions, and enactment of law
pcnadElng the author of false reports or
runners regarding a national bank we're
also proposed by the controller
With few exceptions the banks in
the large cities, which may be properly
claSsed as metropolitan banks and
which hold the bulk of the deposits in
our banking system, have continued to
>SiA4oA1SlI lIdle lileF SOunQlneSS and
strength throughout the entire decade
which we have under consideration.
including the depression years of 1890
and 1881 1t would be these insti-
tutlons, which represent the backbone
OF the banking structure, which would
establish the branches.
Trading on D. c. Exchange.
Trading on the Washington Stock
Exchange today opened with two 10
share lots of Capital Traction selling
at 81. Tris is the same price as has
prevailed for several days.
Ire next sale was a small lot of
Potomac Power 6 per cent preferred at
Ill. same as recent transfers.
Mergenthaler Linotype figured in
very small sale at So. This was a new
low for the year, but the sale was
hardly large enough to establish a real
market figure.
After call two $500 sales in Wash
ington Gas Light SIS were recorded
at 100.
National Mortgage & Investment pre-
ferred figured in sale at "a shares
and another OF 80 shares today, all