Evening star., 1934-12-28
CAPITAL TRANSIT
B NET AT $886,S5
Large Gain for '11-Month
Period Reported to
Commission.
BY EDWARD C. STONE.


Transit Co. in the first IL months of
this year amounted to $3.50, 1896 SO, this
remarkable turnabout in earnings by
the local street railway lines being re-
ported to the Public Utilities Commis-
sion today along with the financial
statement for November
During the IL months operating rev.
enues totaled S7689, ,652 99 Operating
expenses called for S5,241 ,44207. taxes
required $552, ,701.65 and depreciation
took $540,088.56, making a total for
these three items of $6,334, ,232 %, and
leaving net income from operations
OF S1,355. .420.71
Incorporating income in the II
months totaled Sl54.516.45, bringing
gross revenues up to sl,509,937l6. De-
ductions from gross totaled S623, ,04l.-
80, leaving the above mentioned net
profit of nearly 5000 ,00O During the
same period the Capital transit sys-
tenn carried 1l9,0l2,360 revenue pas
sengerS.
The transit company in the Novem-
Der statement reported operating reve-
nues of S725, ,984. .05, operating expenses,
taxes and depreciation $597, 7,990.6l,
leaving an operating income OF Sl27,-
e9344
Incorporating income amounted to
S13,72455, making gross stand at
SAL l,7l799. The usual deductions
from gross amounted to S56,006.20,
leaving a total net income for Novem-
Der of $85.711.79.
The report also shows that during
November the transit lines carried
IL ,842 ,088.
In the first full year under consoli-
dated operations the Capital transit
company passed the Sl.O00O00 mark
in net earnings. BY adding last De-
cembers' net income of S1l8,392.58 to
today's II months report the total
stands at S1,005, ,28794. That the
merger has proved an amazing flnan-
cial success goes without saying.
The first years results indicate that
the ST dividend was fully warranted.
At the same time, net earnings augur
we'll for further dividends in the
coming year.
Pump Printing Versus Wages.
The financial magazine Sphere, in
discussing business conditions, says
that The sick industry in the con-
struction industry and all the huge
expenditures on public works, Federal
and non-Federal, have failed to prime
the pump. They could not prime it
for the very simple reason that high
costs in the form of wages and OF
materials utterly destroyed the eff
cacy of the program" The maga-
zine adds:
1T is fundamental that in any gov
ernmental subsidization of employ
ment, wages and materials should be
lower, not higher, than for compar-
able private work. There should be
a premium on private employment,
not on public employment.
1T is fact of record that many
communities which accepted the 80
per cent grant from the P. w. A.
with the conditions that specified
wages should be paid, actually lost on
the transaction. Had they paid the
going wage in their communities the
cost would have been less than TO per
cent Of the actual cost.
1t is not politically feasible to
overthrow in their entirety the wage
scales that have been accepted, but
it is absolutely necessary that, before
the Government undertakes any fur
ther comprehensive expenditure of
its resources, it require of all those
directly to be benefited that co-opera-
ton which takes the form of con-
cessions"
Advertisers May Meet Here.
1t was learned in the financial dis
trict today that the Financial Ad-
vertisers Association is seriously con-
sidering holding its next national con-
vention in Washington. The last
meeting was in Buffalo.
The convention would bring 300 or
more of the country's best known bank
and other financial advertising experts
to the Capital. While the annual
conventions are not very large, the
matters discussed always prove of wide
interest and importance. Several local
bankers are members of the associa-
ton.
I. I. Sperling is president this year
He recently outlined the work of the
association as being three fold:
Cd To provide new and better ways
OF helping members do an adequate
public relations, advertising and new
business job for their respective insti-
IuIlOIlS, tZ) 10 ASSIST members IN con-
vincing their own institutions of the
necessity for such a program, 90 to
increase the membership of the asso-
citation so that its activities in behalf
of financial merchandising and Amer
lean banking may continue on a high
plane.
Heard in Financial District.
Georgetown Gas Light SIS sold on
the Washington Stock Exchange to-
day at 108 for 81 900 bond. Capital
Traction IS moved at 1914.
1t is announced that Controller of
the Currency J. F. T. OConnor will
probably not accept the post as Fed
eral Reserve agent of the Reserve
Bank at San Francisco. There are
vacancies at present in Cleveland, San
Francisco and Kansas City
Postmaster General James A. Farley,
taking as his topic The New Deal"
will address the fifth annual BANQUET
of the Anthracite Club of New York
on January II.
James w. Price has been appointed
assistant to Senior Vice President
George M. Shriver of the Baltimore &
Ohio Railroad. He takes the place of
the late F. x. Milholland and has
been with the B. & o. continuously
since April, 1906.