Evening star., 1933-10-28
TRAFFIC ON STREET
CARS IS IMPROVING
Income Gain Held Partly Due
to Rate Changes in Taxi.
cab Zones.
BY EDWARD C. STONE.

d Electrlc 90. ana OF the Sapltai
Traction Co. have shown improvement
during October. partly as result of
the higher taxicab fares due to the
changing of zone limits.
Officials of the two companies state
that figures for the period since the
new taXicab rates went into effect are
not yet available. but says there has
been quite a notable increase in the
number of revenue passengers using the
street car lines.
The October statements, when filed
with the Public Utilities Commission,
will show very accurately what has
happened in the way of increased
revenues Operating incomes will be
higher, but how much difference re-
mains to be seen
The new taXicab zone regulations
went into effect early this month just
as the world series came along WASH
ington was full of visiting base ball
fans and traffic naturally took a jump.
During the world series ball games, it
was also reported that taxicab income
bounded upward More favorable earn
ings since that time have also been
reported.
Following the abnormal traffic condi-
ti0nS OF that week, street railway Off
cials have watched results with deep i'll
terest. The new DEAL has helped
earnings most in downtown. riding from
the more distant taXicab zones, as was
to be expected.
Banks Actively Seeking Loans.
In discussing the proper role of
banks in credit extension, the Trust
Co. Magazine says:
1T is clear that the problem of
financing recovery based on a going
country instead of a busted one is one
of supplying capital credit. since this
transition may take years rather than
months. The banks have justly refused
to be brow-beaten into making loans
which the Governments own exam
liners would classify as SLOW or doubt
full; they can never forget their re-
sponSibility for payment of deposit
liabilities. While the depositor may be
guaranteed against loss of his funds
in the case of failure, the bank is not
guaranteed against withdrawal or shift
ing Of such deposits elsewhere.
The public has too long labored
under the misapprehension that banks
control credit. When a business, re-
quired TO increase its costs under an
industrial code, depletes both capital
and earning power, it is clearly in need
of another type of accommodation.
Capital, either fixed or in intermediate
form, similar to that now accorded to
agriculture, is required, as it will doubt
less take considerably more than a year
for the effect of recovery to be trans
lated into profits.
The banks are actively soliciting
loans where the capital structure of a
business enterprise provides adequate
equity
Further Recovery Seen in 1884.
1t is a long time ahead but one of the
first forecasts for 1884 has appeared.
It's favorable. Here is what the Ameri-
can Institute of Finance says:
Though the American Institute OF
Finance Index of General Business Ac-
tivity registered decline for the month
of September, it remains our opinion
from a long-pull standpoint that what
might be termed the natural forces for
recovery, following a three-year de-
preston, are in the ascendancy.
I'VE do not anticipate that the cur
rent readjustment, following the over
stimulation of the late Spring and early
Summer. will develop into another
period of extended deflatlon. All the
efforts of the Government, of whatever
character, are directed specifically
against such a development.
"Disregarding the immediate outlook,
indications are for further recovery in
1884 either on the basis of a further
expansion of natural forces for recovery,
which we hope will be the development,
or artificial stimulation"
Sees Securities Act Amended.
John j. O'Connor, manager of the
finance department of the United States
Chamber of Commerce, believes the
next session of Congress Will make
changes in the new securities act On
the issuance of new securities he says:
Many reorganizationS requiring cap
ital to extend operations or to reduce
bank obligations are being held up. 1t
is probably true that with further i'm
provement of general economic con-
ditions some of these fotations would
be attempted The effects, however, of
the securities act in its present FORM
upon commerce and industry, upon our
financial facilities-even with the estab-
ishment of better basis for faith in
credit and currency-are deterrent
upon recovery.
Corporations that are solvent are
likely to be driven into receivership
through inability to refund their obli-
cations. Any marked improvement in
this situation cannot be made until
Congress amends the law in such way
as to free isSuerS and financing houses
from excessive liabilities.
1T Is idle to expect banks or the
Government to provide, in sufficient
volume. the desired capital loans, which
are excessively slow loans"
Heard in Financial District.
The regular quarterly dividend of 90
cents per share will be paid by the
Washington Gas Light Co. on November
1. The disbursement will be made to
stockholders of record on october 25.
Depositors in the Commercial Ma
tional Bank, now in receiverShip, hail
receiver will pay out 81 $50, 900 about
November Is as the second dividend.
Added TO the 20 per cent payment
already disbursed, this action will bring
the amount returned depositors to so
per cent
Another important financial news an
nouncement made during the week re-
lated to the Mount Vernon Savings
Bank, the directors dennltely voting to
become merged with the Washington
Mechanics Savings Bank of which Ezra
Gould is president. The banking skies,
locally, are clearing rapidly.
Trade Commission Halts Issues.
The Federal Trade Commission has
issued stop orders suspending the ef-
fectiveness of registration statements of
three companies. affecting total of
S606, 500 in stock issues.
Orders were directed against Liberty
Brewing Co. Of Baltimore, which pro-
posed to issue S294,0O0 in securities;
Byron Gold Mining Co., Omaha, which
proposed an issue of $4,000, and
Southwestern Trading Co., Denver,
which proposed a S237 500 stock issue
The commission announced that the
stop orders would remain in effect until
certain deficiencies in the registration