Evening star., 1935-04-06
CAPITAL TRANSIT
EARNINGS SLUMP
February Net Income Cut to
$38,891-Sharp Gain
in Traffic Noted.
BY EDWARD C. STONE.

compared with $75,502.45 in February
q year ago, decrease of S36.6l1l9
or 48 per cent. according to the
monthly financial statement filed
with the Public Utilities Commission
today.
A breakdown of the figures shows
operating revenues of S687, ,l3O68
against S629, 1885, an increase of
$57,8l683 over the same month last
year. In spite of this increase in
operating revenues of more than 9
per cent. operating expenses mounted
still faster, standing at S50l ,41047
as compared with $419,228.72. an ad-
vance of $81.181.75 or 10 per cent
Taxes also were higher. being
$53.787.88 in comparison with $43.-
209.88 last year.an increase of S10,578,
or about one-fourth. The s'ansit
company took out $5O.59026 for de-
probation against $48 e8444 in Feb
ruary. 1884, difference of ST SOS 82
and leaving a total for operating
expenses, taxes and depreciation of
$605. 1851. comparede with S5l1.-
42304 jump of $94, ,365.57. which
reveals an advance in operating costs
of more than 18 per cent.
The officials note in the report that
they do not consider the monthly de-
probation figure of more than $50,-
600 as sufficient and have asked the
commission for a hearing on this
point. The above reductions left an
inn Inn in IDh of
S81 .342.07 compared with Silt ,890.81
year ago. a difference of S3l SAB IA.
Incorporating income was slightly
lower this year, bringing gross little
below operating net. Interest deduc-
tions from gross called for S54 ,874 80.
Total street car and bus travel
during February made a remarkable
record, the various lines carrying
15,388,l31 passengers in comparison
with 1881 ,688 year ago. This is an
increase of 2,556,443 in total pas
sengerS, or almost 20 per cent.
Traffic Scars in Two Months.
Capital Transit also filed sum-
mary Of earnings for the first two
months of the present year Total
passengers carried during the period
numbered 31,997,301, as compared
with 26,4l3,824 in January and Feb
ruary last year, an improvement of
6,583,477 or 81 per cent.
Operating revenues reached the sum
of Sl.440, ,47217 against Sl,295, ,682 81
last year, substantial gain of S144,-
1920. However, crimp was put in
this advance of II per cent by "a
per cent boost in operating expenses,
taxes and depreciation, the total
standing at $l,280 1892. as compared
with sl,026, ,26921, a bound upward
of S254,11701.
These operating costs left net
income from operations of S160085 95
against 9,413.76 year ago. slump
of Sl09,3278l. Incorporating in
come was up s79463 adding that
much to gross from which deductions
were made of $113 02934 against Sl13,-
35l.02 last year, leaving net income
for the two months of S74,215.2l in
comparison with S182,42671 a year
ago. a decrease of S1O8,211.5o, or a
81 per cent dip.
These net earnings are sweeping
reversal of income before the street
IIlcISeI NeIlL ellcCG. AS pre-
viously noted, the increased costs are
due to wage increases. pay roll ex-
panSion, higher cost of power due to
fuel advances and a jump in the
amount of power used, as we'll as
larger outlays for equipment While
the smaller profits may cause a good
deal of surprise among the stock
holders, net revenues are ample to
keep up the frequently heard discus
sions over dividends and the specula-
ton as to the amounts and dates of
payment.
Bankers Study Court Rulings.
The Supreme Courts latest rulings
on banking matters have proved of
unusual interest in the financial dis
trict, most of the cases being an
aftermath of legal restraints since
the banking holiday of 1888
One of the most important recent
decisions by the Court gave the New
York State superintendent of banks
the right to enter New Jersey and
sue stockholders of the closed Bank
of the United States to meet the
deficiency between assets and liza
bilities of the institution in order to
meet its depositors' claims. The New
Jersey statute barring such action
was ruled unconstitutional.
Another decision involved the ques-
ton whether minority creditors of a
bank can bar reorganization Of the
Institution, under State laws. The
court held in the case of the Peoples
Bank & Trust Co. of Tupelo, Miss,
that in the freezing of deposits" in
connection with reorganization, all
that the Mississippi statute did was to
change the method of liquidation. The
court said that collections in the in
terest of creditors of the bank are
made more promptly and readily by
q going concern than by one in liqui-
dation.
The Arkansas law extending the
time in which delinquent property
owners may be required to pay up on
district improvement bonds in de-
fault, was invalidated by the court,
which held that the law involves "a
poStponement for a term of many
years with undisturbed possession for
the debtor and without a dollar for
the creditor" Further, the court held,
there is not even requirement that
the debtor shall satisfy the court of
his inability to pay"
Assets held by an insurance COM
pany against matured and unpaid
coupons attached to 20-payment life
coupon on-participating policies do
not constitute reserves within the
meaning of the revenue act of 1921,
the court held in a decision involv-
ing the Inter- Mountain Life Insur-
ance Co. This decision was held to
be of importance to the companies
handling this type of insurance
Heard in Financial District.
Capital Traction SIS, which reached
par this week for the first time in
many years, were down to 371a in
1882. The street car merger gave
them a needed boost. the sweeping
upturn In earnings helped. Perhaps
the greatest factor in the advance