Evening star., 1934-05-23
TRANSIT EARNINGS
CONTINUE TO RISE.
April Report Is Expected to
Show Large Gain Over
Year Ago.
BY EDWARD c. STONE.

Another fine earnings report cover
ing April is expected daily from the
Capital Transit Co. by the Public
Utilities Commission. According to
unofficial reports in the financial dis
trict, the monthly statement will show
vastly larger net profits than were
earned by the two separate street
car lines during the same month a
year ago.
Complete reversal Of the downtrend
In revenues which had prevailed for
several years was shown during the
first four months of operations after
the merger went into effect. The So
called weekly passes were again most
popular in April and other passenger
traffic earnings are said to have
scored highly favorable results.
December was the first month OF
the consolidated operations. In that
month net earnings, after bond inter-
est, totaled $l18,392.58. In January
net profits amounted to Sl06,92426.
During February net earnings were
reported as s75,502. AS, while in March
net earnings climbed to S9l, ,095.49.
In December the total number Of
passengers carried on the consolidated
lines reached 12,441, lis, in January
13,634,320, in February 1881 425 and
in March l4,907849. 1t is the belief
in the financial district that this
splendid average was maintained dur
ing April.
With such excellent passenger traf-
fc figures, total net for the first four
months of merged operations amount
ed to 81 SO a share on the 24,00O,000
capital stock of the company.
Seeks Bank Act Changes.
Senator Fletcher. chairman of the
Senate Banking Committee. has Of
fered amendments to the revised
statutes and the banking act of 1888
which exempt foreign branches of
American banks from the provisions
of the present law prohibiting interest
payments on demand deposits. This
amendment is designed to permit such
foreign branches to compete on an
equal basis with foreign banks.
The bill also amends the law to
pay a rate of interest on deposits and
charge interest on loans in an amount
permitted by the law of the foreign
country in which the branch bank IS
located.
Another clarifying amendment would
permit national banks to purchase
or underwrite" investment securities
in an amount not exceeding 10 per
cent of the issue, provided such pur-
chase does not exceed Is per cent OF
the capital of the bank, paid in and
unimpaired and 25 per cent of paid
in surplus.
Ayres Raps Securities Act.
The Federal securities act went into
effect more than nine months ago.
During most of that time business
activity has been expanding, but the
recovery, says Leonard P. Ayres,
economist, has not been accompa-
MED by such an increasing flow OF
new security issues as has marked
previous upturns from depression in
this country This condition has
aroused much controversy about the
new act.
In the decade from 1921 through
1880 the volume of new securities
averaged nearly $500, 100000 a year,
and in the last three years OF the
prosperity period their average was
well over 100000 year. In
1888 they amounted to little more than
$1,000, O,OOO,O0O.
The clear fact is that the flow of
new capital into enterprise has almost
ceased, and the evidence strongly in
dicates tnat the Federal securities act
is an important factor in contrlbut-
ing to the stoppage, and so in retard-
ing recovery and restricting re-em-
ployment, Col Ayres believes.
Today's Trading on Exchange.
Two ST, 900 sales in Columbia Country
Club SIS opened trading on the WASH
ington Stock Exchange today, both
transfers being made at par and "a.
Capital Traction SIS, which have
been active for several weeks, were out
again today, $1,000 and $500 moving
at 81, unchanged from other recent
sales
washington Gas Light SIS, 1858,
advanced from yesterdays price OF
96 to 96al on two $1,000 transactions.
They closed 96 bid and 81 asked.
Washington Railway & Electric
preferred led the stock division, sew
eral sales being recorded at 881a.
Mergenthaler Linotype moved at "a
and Capital Traction stock, which
will soon be transferred into Capital
Transit certificates, came out at "a.
Heard in Financial District.
International Business Machines
Corporation today declared quar-
terly dividend of $50 share on the
capital stock, payable July 10 to
holders of record June %, the Wash
ington office reports.
S. S. Kresge Co. has declared a
dividend of 20 cents on the common
stock and the regular quarterly divi-
dend of SITS on the preferred stock.
both payable June 80 to stock of
record June IA. Similar payment
was made on the common stock in
the three preceding quarters.
Commonwealth & Southern Corpo-
ration has declared the regular quar-
terly dividend of $150 on the pre-
ferred stock, payable July to stock
of record June 8.