Evening star., 1934-08-02
TRANSIT EARNINGS
HIT S2.81 A SHARE
Profits Since Lines Merger
Increased Further by
June Total.
BY EDWARD c. STONE.

in the seven months since the street
car line merger went into effect here
las, December. figure up 70 t28i per
share. including the June report just
made 70 the Public Utilities Commis-
eion
The June financial statement re-
veaied another flne month for earn
inRz, net income standing al SOL
2si o. Net income for the first six
months VI the present year was also
reported 10 the commission, this
figure being S555 406l5
Every month under the new con-
soiidated operations has shown really
remarkable earnings. The weekly 81
passes. As they are called, have
brought about a tremendous jump in
the number Of passengers carried and
q corresponding advance in revenues
An Increase OF $4,000 Government
employees in the city in the past few
months is assigned as another most
important factor In boosting trafiic.
Holders OF Capital Transit stock,
which Is still being carried on Capital
Traction certificates. believe that
adoption OF the weekly ticket plan
some years ago would have resulted
in q very marked difference In earn
inas of both Capital Traction and
the Washington Railway e. Electric
car lines Capital Traction might
even have paid some sort of dividend
all the time, they claim.
Bond Needs Wen Covered.
Y. E. Booker g. Co. local invest
ment house, published an analysis
today covering Capital Transit earn
ings since the merger went into effect.
The review gives the month 10 month
record of passengers carried. revenues.
expenses and net earnings after bond
interest The analysis says:
Earnings of the Capital Transit
Co for the seven-month period ended
June 80 we're $673, 1878. after all
charges, including bond interest, taxes
and depreciation This is $28l
share on the 100000 shares of stock
outstanding. Interest on the out
standing bonds was covered "a times
during the period.
THE fact that June earnings held
up so well is particularly encouraging,
since this is the first Summer month
and the seasonal trend of traffic usu-
ally is sharply downward during the
period"
The Booker statement regarding the
coverage Of bond interest is of spe-
cial significance, and shows clearly
what is being left for the stock. 1t
is understood in the financial dis
trict that Capital TranSit's directors
did not wish to resume dividends un-
iii they saw how much of a Summer
traffic slump would be experienced.
They did not want to vote dividend
II the big gain in earnings was not
to be permanent. 1t is now evident
that there is to be no Summer traffic
slump of much Importance, and that
the new earnings are here to stay.
Hope for Dividend Action.
That is why SO much is being heard
in the financial district regarding re-
sumption of dividends. Shareholders
claim some sort Of dividend is war
ranted right now. Such action is only
a matter of time But how soon it
will be voted the directors decline to
state. Even a small quarterly dis
bursement in these times Of depression
would be welcomed by every stock
holder 1t would be a real help to
the community, as the stock is so
widely held
The merger brought many surprises
Great economies in operation we're
expected. So far expenses have
mounted, instead of dropping, the
company having taken on 500 addi-
tional employees. Wages also have
been restored, adding about $25, 900 a
month TO operating expenses.
But in spite of these higher costs,
net income totaled over $3.50 in
seven months. No wonder that Pres
ident John H. Hanna and his official
staff are pleased with the outlook.
Grain Pit Seat Purchased.
Chauncey Parker, jr., partner in the
New York Stock Exchange firm of
AuchincloSS, Parker & Redpath, has
returned to Washington from a weeks
visit in Chicago, where he went to
study the grain and commodity mar
kets and take in the Century of Prog
ress Exposition. He was accompanied
by Alfred Putnam and Albert Red
path, other members of the firm.
Mr.. Parker reported today that they
were greatly impressed by the almost
amazing interest shown in grain and
other commodities. They became so
enthusiastic that they purchased a
seat on the Chicago Board of Trade.
Mr.. Putnam of Philadelphia will be
the board member and will become
actively engaged in representing the
Washington and other Offices in trad
ing in the various commodities listed
on the Chicago Exchange
The firm already has wire connec-
tions with Chicago for the Washing
ton, Baltimore, Philadelphia and
Wilkes Barre offices. Mr.. Parker
found business in Chicago surprising
ly active and business leaders pursu-
ing an aggressive course. Increased
activity this Fall also Is forecast in
the Middle West.
TOday's Trading on Exchange.
Sales IN Washington Gas SIS. 1860,
led business on the Washington Stock
Exchange today, two $1,000 and one
$4,000 transfers taking place at l09S.
Washington Railway g. Electric As
recorded two sales at 972, and 81 900.
City & Suburban SIS moved at 73
Bids on other bonds were practically
unchanged.
Capital Traction stock moved at %
today, after selling yesterday at 2lI2.
The slump in quotations in the past
few Gays is said to be due to the
lower prices on securities in New
York which caused some selling here.
Potomac Electric Power 5i2 per
cent preferred sold up TO ia today
on light turnover. Washington
Railway & Electric preferred figured
in lo-Share sale at par
President C. J. Gockeler Of the ex-
change and an official in the Ham
alton National Bank, will leave here
IN few days for an outing at Mar
gate City, n. J.
otterback Leaves Hospital.
Maurice OtterbaCk. chairman Of
the board Of the Anacostia Bank.