Evening star., 1937-12-14
CAPITAL TRANSIT
! PROFITS IMPROVE
Revision in Fares Brings
About $250,0OO More
Revenue a Year.
BY EDWARD C. STONE.

November, 1t was learned at the head
Offices of the company today.
1t will be recalled that Capital
Transit officials estimated that the
fare increase granted by the Public
Utilities Commission would mean an
improvement of about $250,000 a year
in revenues. So far that prediction
has proved highly accurate.
President E. D. Merrill of the Capt.
tai Transit Co. said today that the
original estimates of anticipated in
creaSes in earnings have been justi-
fied." While it is too soon to make any
definite statements regarding perma-
nent results, the higher earnings to
date indicate that the S25000O figure
will be reached, he said.
In the short time that the six tokens
for so cents have been in effect the
results have been even higher than
expected, according to Mr.. Merrill.
The weather has lot to do with
the siuation, he explained Cold
weather always causes an increase in
street car and bus riding, he said,
and there has been more cold weather
than usual since the new fares were
adopted.
Exact Figures Due Soon.
Mr.. Merrill of course, could not say
how long the present marked increase
in revenue would be maintained The
test has been too brief, while the
weather, business conditions and a
hundred other factors enter into the
of
transportation company. The exact
figures for the first month, not yet
available, will be reported to the Pub
lie Utilities Commission when the
November financial statement is filed
late this month.
The indicated increase of $250,000
In yearly revenues is the most en-
couraging news for the hundreds OF
Washington stockholders that has ap-
peared in long time. The situation
looked brighter for them when the
higher fares were granted. but there
was considerable uncertainty as to
how much the fare boost would mean
The last sale of Capital Transit
stock on the Washington Exchange
was made at 8. 1t was a very small!
lot sale. The present bid is with
10 asked for the stock. The situation
with Capital Transit stock is much
the same as that of many leading
steam railroad securities.
Rails in Like Position.
Like the transit company, the rail-
roads asked for higher fares To get
the increase they nave had to make
the situation look as dark as possible,
at least to present convincing evi-
dence that higher rates are necessary
As this unpleasant evidence is present.
ed many security holders become
alarmed and sell their stocks al any
price. The more evidence presented,
the more depressed become the stocks
Th plea for higher fares by the
Capital Transit Co. was before the
Public Utilities Commission for many
months. During that time the stock
steadily sold off. The bonds did, too.
Reports of better earnings may cause
turn. The next few weeks will tell
Early this year the stock sold above
$14 per share and years ago was above
500 a share.
Loan Firm Votes Dividends.
Directors of the State Loan Co.,
Mount Rainier. Md, at the December
meeting yesterday, voted the four
teenth consecutive dividend of 81 a
share and an extra dividend of $50
share on the preferred stock. The
board also declared dividend of
$l.s0 a share on the common stock.
The dividends are payable on De-
cember Is to shareholders of record
December /, officials announced.
The Baltimore Transit Co. has de-
clared semi-annual interest payments
OF n per cent on the company's
series A first per cent debentures
and rs on the series A first per
cent debentures, payable January l
to holders of record December 16.
These interest payments are the same
as those paid on July l and Janu-
ary /. 1897.
Christmas bonuses for all employees
have been voted By the Morris Plan
Bank OF Virginia. These bonuses
range from $40 for those employed
less than three months to two weeks
f"S AVA eiAoSC eiHPioSCo q year OI
more.
Coast Lines Net Advances.
The Atlantic Coast Line Railroad re-
ports for the first 10 months of this
year net earnings equal to S266 share
on the common stock, in comparison
with sl08 share On the common
stock in the like period in 1886.
Tho Hoi1ca
Committee is reported to have reached
tentative agreement to exempt from
taxation debentures issued by national
mortgage associations in connection
with the proposed housing construction
campaign. The committee report is
due later this week.
The Federal Reserve Board reports
that postal savings deposits in October
declined slightly from September, but
remained considerably higher than for
October, 1886.
Washington bankers reported TODAY
that interest in the new 1888 Christ
mas savings clubs remains unabated.
The number of accounts opened so far
this week is ahead of the same date
year ago.
Heard in Financial District.
Potomac Electric Power 51b per
cent preferred stock sold at Ill today
on the Washington Stock Exchange
washington Gas Light preferred
stock came out at SO, and Washing
ton Railway g. Electric preferred
again commanded 109. Bonds were
neglected
Norfolk, Va. has scheduled for
sale on January 4. 81 ,000000 of pub
lie improvement bonds, due in to
20 years.
The United States Treasury will
save about $10.000,O0O in interest pay
ments through the Supreme Courts
favorable ruling yesterday on gold
bond payments.
Leaders in the Red Cross Christmas
Seal campaign are now stationed in
most OF the bank lobbies in the city.