Evening star., 1939-11-10
Transit Holders Hope
For Dividend Action
By Early in 1910
Relieve Some Payment
Should Be Made as
Earnings Improve
BY EDWARD C. STONE.


Transit Co. stock are wondering
about dividend chances, now that
the wage dispute between company
officials and employees has been
amicably settled.
The feeling is widely expressed in
the financial district by sharehold-
ers that some sort of dividend
should be paid this year, or early
In 1910 in the light of present earn
ings and the fact that future labor
costs are now known to the COM
pany management up to next July.
Pay advances ranging from 2 to
6 cents an hour. including retroac-
tive pay amounting to $50 900. were
awarded by the board of arbitration
after exhaustive hearings and study
Stockholders interviewed today said
they did not begrudge the 5000
Capital Transit employees the pay
increases. In fact, the higher pay
is considered fully justified in the
light of testimony presented before
the arbitration board and in COM
parison with pay for similar work
by street car companies in other
cities.
Last Dividend Paid in 1894.
The only dividend paid by the
Capital Transit Co. came in Decem-
ber, 1884, when the directors voted
81 share on the outstanding
stock. Since that time the stock
holders have been living on hopes
Before the merger. the old Capital
Traction Co. paid 81 year up to
and through 1929. On January
and April l, 1880. s150 a share was
distributed. On July l, 1880, the
dividend was reduced to ST share,
this rate being maintained quarterly
until January l. 1882. When the
dividend was cut to so cents a
share.
Earnings continued to drop, and
on April l and July of the same
year, 1882, the dividend was further
cut to Is cents per share No further
payments were made in 1882. and
nothing was paid in 1888, the merger
having gone in operation on De-
cember 81 of that year.
At the time of the merger with
the Washington Railway & Elec-
trio car lines the stockholders in
the old Capital Traction Co. were
assigned the same amount of stock
in the Capital Transit Co. 1t is
stated in the financial district that
many of the original stockholders
still own their stock, the bulk of
which cost around 500 per share
To these investors the absence of
dividends in 1885, 1886. 1887, 1888
and SO far in 1889 has proved very
real disappointment.
There are some shareholders in
the Capital who paid $118 a share
for their stock back in 1926. In 1927
the stock sold from S1O8 a share
down to s103.25. still above par. In
1929 the stock dropped to 9112, in
1880 as low as So and in 1881 tum-
bled to 3214. Continuing down.
ward, the high in 1882 was 20 with
low of 4.
In 1888 the high mark was 14lz
and the low 6. Exchange of the
old stock began in September, 1894,
the new stock registering high of
% and low 23a. The range in 1885
was 2612-1412, in 1896 l74 -lla,
in 1887 1915, in 1888 9A -6s4 with
the stock now selling around 1917.
Earnings in Sharp Rise.
Capital Transit net earnings in
the first nine months of this year
totaled S405,7 06. against s154,-
93l 80 year ago, gain of $780,
803.26, or an increase of 1919 per
cent.
Revenue passengers carried in the
nine months totaled 126,9O7 1889,
against 119,166,795 a year ago.
notable advance of 7,740,594, or 65
per cent. In September alone the
gain in traffic was l,228,611 revenue
passengers, or 81 per cent.
From the net earnings of more than
$405,000 So far in 1889 must be de-
Quoted the $4,000 retroactive pay
allowed the 5000 transit employees.
This leaves the nine months net
around s325,735.
With the three best traffic months
of the year to come, it is estimated
that the years net will be between
S450,000 and $50O,O0O, equivalent to
approximately 50 a share on the
stock. A dividend this year would
still leave ample funds to be added
to surplus and undivided profits, an
Item which already stands at sub
stantial figure on the balance sheet.
Net earnings do not show the en-
tire picture, however. The COM
pany has paid out more than Sl2,-
100000 for new cars, busses, track
age and other Improvements since
the merger became effective. Bank
loans must be met among other ex-
penses.
For these and other reasons the
final meetings of the directors this
year will be awaited with keenest
interest by all the stockholders.
Auditors Hear U. S. Experts.
William L. Kilcoin, regional repre-
sentative in this territory of the old
age and survivors insurance, Social
Security Board, addressed the
auditors section of the District
Bankers Association, at the Lee
House last evening on The Social
0SSul1CS ACl do IL AllcCCS lll6
Banks He substituted for John
Corson, who was i'll.
Mr.. Kilcoin gave an intensely in
teresting address on a subject OF
great Importance to all bank
auditors. His assistant, B. M. Will
liams, also spoke and both took part
in forum discussion which fol-
lowed the principal address. H
Norman Glasco is chairman of the
auditors section.
Ord Preston, president of the Dis
trict Bankers Association, and John
A. Reilly, second vice president, were
special guests.
Heard in Financial District.
John A. Reilly, chairman of the
Speakers Unit of the District of