Evening star., 1935-10-10
TRANSIT EXPENSES
INCREASE SHARPLY
Y. E. Booker & 60. Analysis
Points to Huge Gain
in Pay Roll.
BY EDWARD c. STONE.

showed net earnings, after interest and
taxes of 81 ,442, 1850. OF this amount
only S240, 900, representing dividend
: of 81 a share paid on December is,
1894, has been distributed to the
stockholders.
An analysis just completed by. Y. E.
Booker g. Co. of operations of the
company during the 81 months shows
that while there has been heavy and
continuous upward tre.ld il revenues,
: there has been an even heavier per-
centage increase in expenses. This in
crease is expenses, the review says, is
due first to the fact the great increase
in traffic has neceSSitated the employ
ment of approximately 600 additional
men.
Secondly, the basic pay of the men
has been increased very substantially
since the merger became effective. The
first of these increases in pay became
effective April /, 1884, and amounted
to approximately 100000 year. The
second pay increase vas agreed upon
in July after prolonged arbitration,
and is retroactive to April l, 1885.
This latter increase, after allowing for
income tax adjustments, will cost ap-
proximately 100000 per annum, the
Booker review states.
Recent action of the Public Utilities
Commission correcting tn. deprecia-
tion accrual for busses will add ap-
proximately 100000 per annum to
the company's expenses for this class
Of property alone. The request Of the
company for an upward revision of
eccruaIS for other classes of property
has not yet been acted on by the COM
mission.
Showing Held Favorable.
The review calls special attention
to the August report which included
42,266.53 expenses which are prop
erly charged to previous months. Con-
tinuing, the summary says that analy-
sis of the August report, however, on
a basis of charging against August
operations only that portion of the
: increase of wages and. depreciation
properly attributed to August, shows
net figure of s7.80592 for this
month instead of the deficit of 1884,
46061 as shown by the report filed.
(, When it is remembered that the
street railway business is seasonal,
and that August always is one of the
leanest months of the year, the fact
that the company was able to show
even a modest profit after absorbing
the additional charges, is encourag-
ing, the analysis says.
l.
Gates that despite the great increase
in costs the company earned its in
terest payments. Particularly en-
couraging is the fact that gross reve-
nues for August were over II per cent
more than last year and that this
increase has been fairly steady
throughout recent months. While
further increases in expenses are
inevitable to take care of the increased
business, it Is not likely that the
. company will, in the near future, be
compelled to face such a large in
crease as the one to which it was
recently subjected.
After all reductions for the in
creased wages and depreciation
charges, the company's net, earned
for the eight months ended August
81, was $347 7,65665, the review points
out.
Trust Company Votes Dividend.
At the regular monthly meeting yes
terday afternoon the directors of the
Washington Loan g. Trust Co. de-
clared a quarterly dividend of 2 per
cent, payable November to stock
holders Of record October %. It was
announced the books would be closed
for the transfer of stock from that
date until November 2.
Directors of the Fidelity Storage
Co. at their regular meeting declared
q quarterly dividend of So per share,
payable October is to stockholders of
record September 80.
- The Washington branch of the New |
york Life Insurance Co. has just COM |
Ypleted its twenty-first consecutive |
month in which the agents paid for
more business than the corresponding
month of last year. Earl D. Krewson,
agency director, reports that the local
office is at the present time % per |
cent ahead of the same time last year. |
MIR. Krewson says there we're "a sue
,cessful club members from the WASH |
sngton Office this year as compared |
with 13 last year.
Pitman Heads Morris Bankers.
Ralph W. Pitman of Richmond was
elected president Of the Morris Plan |
Bankers Association at the closing |
session at Virginia Beach. Joseph E. |
Birnie Of Baltimore was reelected |
secretary and treasurer.
Gov. Peery of Virginia told the |
bankers that "the success of this ma
ton rests not upon the rich man, nor |
upon the poor man, but upon the |
middle classes"
William H. Kuhns, managing editor |
of Banking, declared that business
and financial success in the recovery |
period ahead depends absolutely on |
an individuals ability to keep abreast |
of what is going on"
The same speaker said that COM
mercial banks all over the country are |
turning to the small amortized loan,
this being one of the greatest changes |
In banking principles for some time.
Exchange Closes Saturday.
The Washington Stock Exchange
will be closed Saturday, Columbus day, |
1t was announced following today's |
trading. The Washington Office of
New York Stock Exchange houses will
also be closed, but the local banks will |
be open for business as usual.
On the Washington Exchange today
rs shares of Woodward & Lothrop
common stock sold at 40, unchanged
The remaining trading was in WASH
ington Gas SIS, 1858, five consecutive
$1,000 sales taking place at 1861.
This was 4 POINT above the final sales
Of last week. The final bid on Capital
Transit stock was II with 18 asked |
No sales.
w. T. Myers, governor of the Farm |
Credit Administration, announces that |!