Evening star., 1934-09-08
TRANSIT EARNINGS
AT S3.05 A SHARE.
Sharp Upturn in Profits
After Merger Surprises
Company Officials.
BY EDWARD C. STONE

Co. during the first eight months OF
operations since the merger of the
street car lines went into effect
amounted to 1892, ,031, which is equiva-
lent to S3.05 per share on the 240,000
shares of stock outstanding. The con-
solidation took place last December
and the period covered in the earn
ings summary comes up to August l.
The remarkable upturn in earnings
has astonished even the company's
officials. An increase in net income
had been anticipated during the first
year under the merger, but no such
results as have been recorded were
expected by the most cheerful traffic
experts. Judging by the monthly
earnings to date, the transit concern
will earn about 81 a share during the
calendar year.
The 81 passes. growth in the city's
population and a trend from private
automobile riding to street car trans
portations are given the lions share
of credit for the improvement. The
much-heralded savings anticipated
from the merger of two sets of corpo-
ration officials and employees, as well
as from rerouting of street cars, have
not yet become effective. Pay rolls
have had to be increased and the
changes in routes still are in allegiance.
Dividend Action Delayed.
1t is considered doubtful in the
financial district if the Capital
Transit directors will take any divi-
dend action before the end of the cal
endar year. AS long as no dividend is
paid, the stock, of course, cannot be
rated as an investment security. But
it is only a question of time before
dividends will be paid, as satisfactory
earnings are promised for long period
ahead Should the company earn 81
a share this year. and the stock be
placed on a So basis, it would mean
an 8 per cent return on the stock SELL
ing at 25.
The stock closed yesterday with a
small sale at 243a. The final bid was
"a with 26 asked. The stock has not
yet reflected to any marked degree the
surprising improvement in earnings.
The bonds have. Capital Traction SIS,
0AAC41 otA4l OCdA I11C 1ldlllC VI I1lC OlN
company, have climbed this year from
IS to 81. Anacostia & Potomac First
SIS, which opened 1884 at 49, have ad-
vanced to rs. In the same period City
81 Suburban IS have stepped up from
10 to "a
Next Monday will see the first
transfers of stock from the old
Capital Traction certificates to the
new Capital Transit certificates
Holders of the old certificates will
flock to the American Security e.
Trust Co.'S main Office, this bank being
the transfer agent. It's an even ex-
change. The old stock has been
stricken from the Washington Stock
Exchange and the new 100000 shares
listed in its place.
Reserves Up $4,000, 900.
The Federal Reserve Bank of Rich
mond announces that during the year
between August IS, 1893, and August
is, 1884, there were some material
changes in the items on the state
ment. Rediscounts for member banks,
which were very small a year ago, de-
clined by l1,720,000 to less than
three quarters of a million dollars at
the middle of August this year, and
the portfolio of open market paper
also dropped below the low figure
of last year.
On the other hand, the bank in
creased its holdings of Government
securities by $43 3,3o5,o0o during the
year, this change bringing a net in
crease Of $31,512,000 in total earn
ing assets. Circulation of Federal Re-
serve notes increased by $6,084,0O0
over August Is last year. Member
banks, apparently being unable to
invest their funds profitably in salts
factory securities, built up their re-
serve balances at the Federal Reserve
Bank Of Richmond to very high
point during the year, this item rising
by $54,277,000, most of the amount
being in excess of minimum legal
requirements.
Total cash reserves of the Rich
mond Reserve bank rose by S9,478, 900
during the year, but the greatly in
creased deposit liability lowered the
ratio OF cash reserves to note and
deposit liabilities combined by 926
points.
Time deposits in % regularly re-
porting member banks and aggregate
deposits in IL mutual savings banks
in Baltimore totaled $326,603, lot at
the end of July, 1884. lower figure
than $327,654,854 in time and savings
deposits at the end of June this year,
but a higher figure than $318,066 ,733
at the end of July last year. Both
reporting member banks and mutual
savings banks showed declines in
time deposits during the past month,
but both groups of banks increased
deposits during the year, the Rich
mond bank says.
Heard in Financial District.
Offering is made of a new issue of
approximately $13,0000OO Federal
intermediate Credit Banks, 10 per
cent collateral trust debentures, dated
September is, 1884, and due in six
and nine months, according to
Charles r. Dunn, fiscal agent The
rate is the same as that borne by
recent previous issues. The banks
have approximately $22,000,000 of Is
and 212s maturing September IS. of
which $l3,000,000 will be refunded
and the remainder paid off.
Chairmen of the various commit
tees recently appointed by Frank R.
Hope, chairman of the Board of Gov
ernors of the Association of Stock
Exchange Firms, have practically
completed their work of organizing
the personnel of various committees.
An announcement of names of the
members of the committees will prob
ably be made within a week.
United States Trust Co., New York.
has declared the regular quarterly
dividend of SIS, payable October to