Evening star., 1940-02-15
Capital Transit Co.
Makes $4,000 Loan
For New Street Cars
Money Is Obtoined
From Is D. c. Bunks
On Excellent Terms
BY EDWARD G. STONE.

cars InlS year, OFFICIALS nave mace
tentative arrangements ror loan of
$4,000 from 16 Washington banks,
1t was learned today. Plans are sub
ject to drafting of the chattel trust
agreement and final approval of the
Public Utilities Commission. The
new cars will then be ordered for
early delivery.
This is the fourth agreement of
this kind that Capital Transit Co.
has entered into. Of the total of
$4,000, $432, 900 is in time loans for
five years, to be paid in semi-annual
installments, and $l44,oOO is in the
form of five day notes, one for
1867, dated April l, and the other
for SIZE, 1888, dated July /.
The loan bears interest at the rate
of 11a per cent on the amount ma
cent on the amount maturing during
the year 1912, 21a pei cent on the
amount maturing during 1943 and 3
per cent on the amount maturing
thereafter.
Loans Total S4,057 900.
Previous trust agreements of this
sort were made by Capital Transit
in 1887, 1888 and 1889 In 1887 the
company borrowed 81 ,507 900 to pur-
chase As streamlined cars and II
buses In 1888 it borrowed 1891 900
to purchase so cars and % buses. In
1889 it borrowed $983, 900 to purchase
80 street cars and 81 buses.
Including the "a street cars it Is
now buying, this makes a total of
167 street cars and IA buses pur-
chased by Capital Transit with
money borrowed under trust agree
ments, the total amount borrowed
being $4,057 900.
Of the 1887 loan, $946, ,256 has been
repaid up to December 81, 1899. OF
the 1888 loan, $470,900 has been re-
paid and of the 1899 loan, 1919, ATS
has been repaid, making total re-
paid of $1,736,631.
Company's Credit Better.
Under the three previous trust
agreements, the interest rate was 4
per cent. On the 1910 loan, the
average interest rate is figured at 269
per cent, which shows that the COM
pany is enjoying better credit, al
though the price of its bonds is not
yet up to normal.
In addition to the 167 street cars
purchased In this way, Capital Tran
sit bought 20 streamlined cars of
much the same design in 1885, for
which it paid cash.
Since the merger it has purchased
484 buses, of which 144 have been
bought under chattel trust agree
ments.
Nearly all the larger banks in the
Capital have participated in the
loans, pleased to find one more out
let for idle funds
Hume Joins Stock Exchange.
Charles w. Hume, who is asso-
ciated with his father, Thomas l..
Hume, and a brother in the securi-
ties business, was elected member
OF the Washington Stock Exchange
today. His father was president of
the exchange many years ago.
Mr.. Hume has had wide financial
experience. He was associate man
ager of Dean, Onatavia g. Co. here
in 1925 and 1926, and was connected
with the First National Bank in Chi
cago for seven years. Later he was
associated with c. L. Blyth & Co.
IN New York, giving up that position
to return % Washington.
He is a native of the Capital and
was educated in the schools here.
He is the first new member elected
to the exchange this year.
Stonier Banquet Speaker.
1t was announced today that DR..
Harold Stonier, New York, executive
manager of the American Bankers
Association, will extend the greet
ings of that organization to WASH
ington Chapter, American Institute
of Banking, at its 35th annual ban
quet on February "a. DR.. Stonier in
his capacity as national educational
director of the American Institute of
Banking has addressed local banking
groups on many past occasions, and
the committee expressed qualification
at being able to include him on the
program.
He has been responsible for en-
larging the curriculum of the in
stitute and in the adoption of
generally higher standards in its
educational work. He also was prime
mover in establishing the graduate
school of banking at Rutgers Uni
versity. In 1887, DR.. Stonier was ap-
pointed executive manager of the
American Bankers Association and
assumed the responsibilities of that
office in addition to his institute
duties.
w. A. H. Church New Director.
w. A. H. Church, president of the
lumber firm of w. A. H. Church,
Inc, and director in the Mutual
Building Association, has been
elected a director in the Mutual
Fire Insurance Co. of the District
of Columbia to fill the unexpired
term of William K. Hill, deceased,
1t was announced today. He is a
son of the late w. A. H. Church,
lumber dealer and banker, who was
president of the Mutual Fire In
surance Co. at the time OF his
death, in 1881.
Lincoln Service Dividends.
Directors of the Lincoln Service
Corp. have declared the regular
quarterly dividend of IA per cent
on the 6 per cent preferred stock
and 1s4 per cent on the per cent
preferred stock, both payable March
IL to stockholders of record Febru-
ary 20. The directors also declared
the regular quarterly dividend of Is
cents per share on the common
stock, payable March IL to stock of
record February 20.
January Sales Set Record.
The Commerce Department re-
ports sales of general merchandise
in rural areas in January were the
best for that month m record Total