Evening star. [volume] (Washington, D.C.) 1854-1972, 1940-08-21
Capital Transit Co.
To Borrow $1,636,0OO
From District Banks
Proceeds to Be Used
In Buying III Buses
And IS Streetcurs
Nv EDWARD c. STONE.

BY EDWARD 4. S1ONL.
Sixteen Washington banks are ex-
pected to make loans totaling ST.
$4,000 10 the Capital Transit Co.
for the purchase OF liz new buses
and IS new streamlined streetcars,
provided the Public Utilities Com
mission approves the application for
such a loan made by the company
late yesterday.
According to the application filed
with the Public Utilities Commits
sion, the loan will be negotiated
under practically the same terms as
similar loans already made by the
transit company from the local
banks.
Fifty-seven of the new buses will
be delivered this fall and the other
SIS during 1941. The IS new street.
cars are to be delivered in l941 and
will be similar to the streamlined
cars now in use.
According to the companys plans,
the money will be borrowed at diff
ferent times as it is needed. The
interest on the short-term notes Will
be IL per cent, on notes payable
in 1912, 2 per cent; in l943. 2l2 per
cent, and on amounts payable there
after 3 per cent.
Growing Traffic Expected.
The move on the part of Capital
Transit officials to order new equip
ment for 194l at this time is due
mainly to the Governments national
defense plans.
Officials expect a further increase in
Government employment here which
will be reflected in substantial in
creases in both bus and streetcar
traffic. There is also possibility
that factory capacity may later be
occupied by work under the defense
program. To anticipate both these
suggested developments, officials de-
cided it would be wise to make the
purchases earlier than usual.
President Edward D. Merrill said
today that the purchase OF these
cars will make possible the retire.
ment of other cars unless uneX-
pected increases in traffic require
retention of old cars temporarily.
Substantial operating economies will
also be possible by use OF the new
cars. Approval of the purchase OF
ST of the new buses has already been
granted by the Public Utilities Com
mission and they have been ordered.
Notes to Run Five Years.
Tho notes are to run for five
wears with curtailment every six
months. AS the Public Utilities
Commission has already approved
applications for similar loans, early
approval of the present loan is an
ticipated by the banks and the tram
sit officials.
Information presented to the
banks by the Capital Transit Co.
states that net earnings for divi-
dends and surplus for the year 1889
amounted to s5s7.112. For the IL
months ending on June 30, 1910, the
company showed a net income OF
s633, 1856. According to present esti-
mates, net earnings for the full year
1910 will reach about $766 .331.
The new streamlined streetcars
will cost about $17,500 each and the
new buses around S1O500 each. The
new equipment will be used as col
lateral for the bank loans.
According to the application filed
with the Public Utilities Commits
sion, Y. E. Booker g. Co. carried on
the negotiations between the banks
and the Capital Transit Co. in con-
nection with the loan.
Mortgage Loans Increase.
F. Wilson Camp. secretary OF the
District Building & Loan League,
reported today that the % associa-
tons in the city approved % per
cent more mortgage loans in July
than in the same month last year.
These associations approved nearly
S35OO,00O in loans last month, the
most of which were for new houses
and other construction projects.
New accounts opened in July we're
also up sharply. compared with the
like month in 1899. Assets OF the
% associations were S16,000,0C0
greater on July 81 than on the same
date a year ago, Secretary Camp
said. Total resources are now s149.-
100000.
The report reflects continued
growing building activity in and
around Washington. Mr.. Camp re-
ports that in 1899 home loans ag-
gregating s122,905.7 700 we're in force.
So far this year the total has riser
by s17478.866 to s14o.384, 566.
Woodward Dividends Voted.
Directors of Woodward g. 10th
rop have declared the regular quar-