Evening star., 1934-11-28
TRANSIT EARNINGS
AT T$919,576 MARK
EIeven-Month Total Shows
Huge Gain Under Con.
SoIidation.
BY EDWARD C. STONE.

under consolidated operations amount
ed to S919,576.15, according to a sur
vey of income made since the October
statement was filed with the Public
Utilities Commission. This summary
includes the December, 1888, net OF
sl18,392 So, that being the month in
which the merger went into effect, and
the first 10 months Of the present
fiscal year.
Detailed figures from Capital Tran
sits October report show that operat-
ing revenues totaled s763 .293 68, oper-
ating expenses, taxes and depreciation
amounted to $651, ,49l.1l, leaving an
operating income of S1318025 81. Nom
operating income was S14,05o8 83, max
ing gross stand at STAG, ,653 40. De-
ductions from gross called for S56,-
4l448, leaving net income for the
month of $50 238.9 80. The main factor
in this surprising showing was the car
rying on the company'S lines OF H.
1881 revenue passengers.
Returns for the first 10 months of
this year are even more impressive.
Operating revenues totaled $685.
66894. Operating expenses amounted
to S4,747, ,293 18, taxes took S489, 9,176 29
and depreciation $490,77220, making
a total of S5,736,24l.67. This left a
10 months operating income of ST.
227,42727.
incorporating income during the
period totaled Sl40,79l,90, placing
gross income less operating expenses,
taxes and depreciation, stand at ST.
366,2l9.17. Deductions from gross re-
quired S567035 60, which left the
street car company with total net
income of S801, 1887. Revenue pas
sengers carried on the company's
lines during the 10 months made a
grand total of 107,l70,596.
Net of S4.2O Share Likely.
An analysis of Capital Transit's
earnings during the past II months,
prepared by Y. E. Booker & Co., local
investment house, being distributed
today, includes an estimate of prob
able earnings for the first full years
operations The Booker review says
that if the November earnings are
as good as those for October, which
II months will be Sl,009000, or S420
a share on the outstanding capital
stock and coverage on bond interest
by approximately 234 times.
The analysis adds that sufficient
time has now elapsed to indicate that
the remarkable improvement in earn
lngS is to be lasting; in fact, the trend
is upward, after allowing for seasonal
variations in traffic. In the first II
months the company carried 157 453,-
074 passengers, total revenues amount
ed TO $7.782,3l641, while total ex-
penSeS, taxes and depreciation re-
quired S6,239.1O5.33. During the pc
riod dozens of new buses have been
purchased, many cars have been add
ed to the service and more than 500
additional men have been employed
The review concludes:
In analyZing the above figures, due
consideration should be given to the
recent application filed by the COM
pany with the Public Utilities Com
mission for permission to increase its
depreciation charges from 100000 to
100000 annually.
Had this amount of additional de-
probation been charged during the
past year. it would, of course, have
reduced the total net earnings to
S709,00O, or S2.95 share, and would
have reduced the bond coverage to
two and one-half times.
In either event, the earnings rec
ord Is an excellent one and places
both the stock and bonds of this COM
pany in an entirely different light
from the standpoint Of the investor"
OIds Joins Stock Exchange.
The board of governors of the Wash
ington Stock Exchange has elected Ed
son B. OldS, jr., who is with Brown,
Goodwin g. Co., to membership on the
Exchange The new member is the
son of the late Edison B. Olds, who
died only few weeks ago after being
connected with the Union Trust Co. for
more than 80 years, holding a vice
presidency at the time of his demise.
Born ard reared in Washington, Mr.
Olds attended Tech High School and
the University of Maryland. He has
been active in the financial district
for the past seven years. The firm
with which he is connected is located
in the American Security & Trust Co.
Building and is one of the younger in
vestment houses in the city.
The partners are L. Clark Brown
and Wilfred L. Goodwin, jr. The con-
Germ has been specializing in munich
pal bonds. The company has now de-
cided to broaden its activities in the
local financial field. Securing a seat
for Mr.. Olds on the Washington Ex-
change is one of the first steps toward
this end.
S5,000,000 New Bonds Sold.
More than S500O,o00 of the s8,000,-
600 Republic of Finland per cent
notes have already been sold, accord
ing to reports from New York. The
total issue, offered by Brown Hartman
g. Co., Edward B. Smith & Co., Lee
Higginson Corp. and the First Boston
Corp, was $4,000, 600, but S2,000,000
of the notes were retained by the Bank
of Finland and not offered in this
country
William Miller. manager of the Wash
ington Office of Brown Hartman &
Co., has been distributing to clients
some most interesting data on the
credit position of Finland. Little
Finland's payment Of Government OBJ
legations has been lesson and shin
ing example to the whole world.
Incidentally. new domestic issues of
municipal and other bonds have been
offered more frequently recently and
are being favorably received. Such
issues have recently been one of the
features in the bond market.
Today's Trading on Exchange.
Washington Railway g. Electric pre-
ferred led trading on the Washington
Stock Exchange today, four sales TAX
ing place at 100l2. Ten shares OF
Capital Transit came out at %. of
u point from yesterday. Lanston
Monotype sold ex-dividend at 48, un-
changed from the last sale, and 10
shares OF Liberty National Bank stock
appeared on the board at rs.
The Washington Exchange, all the
banks and all the brokerage houses IN