Evening star., 1940-03-03

revenues for 1899
of $1,285 ,121, an E. D. Merrill.
increase of $346,206 over the pre-
vious year. Interest deductions called
for $734,345, or $l3,O38 more than
In 1888, the slight increase being
due to higher interest on bank
loans for funds for new streetcars
and requirements.
The years total operating reve-
nues, before expense deductions,
amounted to $12,197111 compared
with $11 ,489014 year ago. Pas
- senger revenues of $11,705, ,788 ac-
counted for the largest part of this
income, this item standing at $ll,-
042,336 in 1898.
Total operating expenses, taxes
and depreciation required $l09ll,-
a90, against $10,550, ,098 in 1898. That
the company took great care to i'm
prove the property during the year
Is revealed in the amount of money
expended for maintenance of way,
structures, plant and equipment, this
Item reaching sl,546,725, against
$l,432,921 a year ago.
tdllt ltCil Ill
the report is the amount deducted
for depreciation during the year.
81 1,359.092 compared with S1.255,195
In 1888. an increase Of $l03,897. In
1894, the first year after the mer-
ger, only $600,00 was set aside for
depreciation.
Earned Surplus Increases.
Earned surplus, or undivided
profits, totaled $2,418,188 on Decem-
Der 81. 1899, against $2,024,109, the
report discloses, an increase during
the year of $394,079. This item at
the end of 1884 totaled only 1857 1893.
President E. D. Merrill makes
many interesting comments in the
annual statement. The gain in op-
Grating revenues was due to an in
-crease of $343,396 in bus revenues
and $365,760 in rail returns. Bus
operating expenses increased $l79,-
604, due to more bus miles and
higher wage rates. The additional
annual expense involved in wage in
creases granted last November is
about 100000 per year, Mr.. Mer-
ril states.
The balance in reserve for depre-
citation and retirement of property
and plant at the end of 1899
amounted to $9,826.378, or approx
mately $682 ,686 more than at the
end of 1888.
The basis for accrual for injuries
and damages, Mr.. Merrill adds, was
changed from S per cent to 81 per
cent of gross operating revenues,
effective November l. The amount
Of this reserve on December 81, 1899,
was 1908 1896, an increase of $l48,-
1859 over the amount shown on De-
cember 81, 1885,
Future Dividend Policy.
President Merrill refers to the So
cent dividend paid on December 20.
In taking this action, he says, con-
sideration was given to the policy
which has been effectively applied
for several years in the acquisition
Of new and better equipment, which
must be continued and which re-
quires substantial cash payments.
This policy, he adds, has demon
strated its value both to the public
and to the stockholders, giving more
comfortable and efficient service, at
tracing more business and making
possible substantial savings in oper-
ations, all of which has resulted in
increased net revenues. Considera-
ton has also been given to the in
crease in taxes and wages.
Furthermore, the president says,
It Is in the best interests of the
stockholders that the companys
credit be adequately maintained, so
that upon the maturity of its bonds,
the first of which is reached in
1947, the equity interests Of the
stockholders may be protected by
suitable refunding operations.
The report concludes with the
statement that this conservative
dividend policy will be maintained
until "the conditions enumerated
are more favorably stabilized"
d. C. Store Sales Climb,
Department store sales in WASH
ington for the week ended Feb
ruary "a mounted Sc per cent above
the like period a year ago and were
also 66 per cent better than in the
previous week this year, the Federal
, Reserve Bank of Richmond reported
yesterday. The gains in the fifth
district were 8 and 10 per cent, re-
spectively.
In the four-week period ended
February 4. department store sales
In the Capital were Sc per cent
higher than last year, against a gain
Of 8 per cent in the whole fifth dis
trict, the review said. Baltimore
showed the best retail trade gains
Of any of the reporting cities.