Evening star., 1938-09-13
TRANSIT SPENDING
TOPS Il MILLIONS
Huge Outlay for Plant and
Equipment Since 1888
Revealed.
By DONALD b. HADLEY.


The Capital Transit Co. has spent
Sl1,2l1.759 on plant and equipment
since the end of 1888, it was reported
today.
The company has added lis new
streamline cars, which, including bal
ance payments on cars now being
delivered, cost 1,926,526. 1t also has
added 400 new buses at cost of
s3,74s,65l, and so used cars purchased
and reconditioned at cost of S238,084.
Other items in the outlay have been
S1,l60,139 for track reroutirg changes:
S2,149681 for track reconstruction:
s630,345 for three new bus garages;
$477075 for purchases of the WASH
ington Rapid Transit Co. property and
equipment: S88l,25 for miscellaneous
property and equipment expenditures.
That the company has elected to
pour more than $4,000 into plant
and equipment in the last five years,
at time when conditions have pre-
vented the earning of anything like
fair return on the money already
invested in the property, indicates in
OH iii way Vic IlldlldRGIlltlll >
desire to develop public good will
through better service and its deter
mination to increase efficiency of ope-
rations
Coupon Rate Forecast.
The S25,000000 l5-year debentures
OF Atlantic Refining Co.. to be offered
Thursday by a syndicate headed by
Smith. Barney & Co., are expected to
carry a coupon rate of 8 per cent. 1t
also is predicted here that the offering
price will be a fraction below par.
Heavy institutional buying probably
will be the chief feature of this high
grade offering. The fact that Morgan,
Stanley e. Co, has taken place in the
syndicate is of unusual interest. 1t
will be the first time it has partici-
pated in a group headed by another
house
In connection with the issue, it is
noteworthy that the debentures will be
the the only debt of the company and
will pe Offset by net tangible assets
amounting to s7.400 for each $1,000 of
the debentures and S1.743 of net cur
rent assets for each 81 900 debenture
If the issue had existed since 1880, in
terest charges would have been earned
an average of 770 times in each of the
last eight years. The company's gross
income for the last nine years has
averaged Sl0e 100000 a year and its
net income has averaged S6,4ll 900 in
the same period compared with prob
able interest charge of around $780,
600 year on the debentures.
A gauge of the market for issues of
this type can be gained from the 15-
year 234 per cent debentures of Stand
at 99S. bid and par asked The 23
year 3 per cent debentures of the same
company are quoted at 10234 bid and
1925 asked
New High Set on Exchange.
Security Storage Co. shares jumped
to a new years high of lib in a 10
share transaction after the call on the
Washington Stock Exchange this
morning. The last previous sale and
years high was LOT.
Also after the call. Riggs National
Bank stock sold at 268, up points
from the previous sale, but below the
years high of 295 in a single-share
deal Capital Traction IS moved at
76Aa, down 2i2 from the previous sale,
on a $500 transaction. Ten shares of
Capital Transit came out at 9, up IS
Of point from sale recorded yes
terday, but still "a of point below the
years high.
Before the call, $500 of Washington
Gas Light SIS Of 1858 sold at 1862, up
half point but below the years high
of 107. Washington Gas Light pre-
ferred sold unchanged at 100 on s.
share turnover
Really Transfers Gain.
Transfers of real estate in the Dis
trict of Columbia showed a contra
seasonal rise in August, compared with
the previous month, officials at the
recorder of deeds Office report. The
August total climbed to 973, against
897 in July. In each of the previous
five years, the August total has been
smaller than the one for July
The August total was only four
behind the same month a year ago,
for which GIT transfers were registered.
This also contrasts with previous
months this year, when substantial
declines from 1887 levels were re-
corded
The number of transfers in the first
eight months of 1888, 1885, 1887 and
1883 follow: