Evening star., 1941-09-04
Transit Has Doubled
Gross in Seven Years,
Survey DiscIoses
Labor and Taxes Have
Prevented Larger Gains
In Net Revenues
BY EDWARD c. STONE.

any increase in the amount of bonds
or capital stock outstanding.
The company expended a total
of s16,310,616 for capital purposes
during the period from December
J. 1888, through December 81, 1910.
OF this amount, S14,013,247 was paid
in cash, leaving a balance, rep
resented by notes due banks of only
S2297 1863.
During the same period, bonds
outstanding were reduced by s844,-
500 and in addition the company
deposited SiTS,445 with trustees
under certain mortgages as result
OF property sold.
Earned surplus increased from ST.
41l779 on January l. 1886, to So
44l,435, or approximately S2,000,0OO.
Company's Record Praised.
These are some of the outstanding
facts presented in an analysis of
the present status of the Capital
Transit Co. by the investment firm
of Y. E. Booker & Co. and distrib-
uted in the financial district today.
The doubling of the companys
gross earnings is considered the
greatest achievement.
Labor costs and taxes have pre-
vented as large an increase in net
as might have been expected, the
review says.
Rates of pay for the trainmen
and bus operators have been in
creased from a maximum of Sc
cents an hour in 1884 to a maximum
of IS cents an hour, the latter
figure becoming effective July l.
1941. This latest wage increase will
add approximately S500000 annually
to the company's pay roll.
Social security taxes and Federal
and District of Columbia income
taxes have contributed substantially
to the increased tax burden and
will continue to increase.
The heavier labor costs and taxes
have been offset to limited extent
by economies resulting from the
substitution of new one-man cars
for the old two-men cars.
81 Dividend Held Secure.
The balance sheet as of June 80,
i941, showed current assets of So
694719. as against current liabilities
Of 1883, $50.
BY far the greater portion of the
company's capital outlay in recent
years has been for new streetcars
and buses At present, the COM
pany has on hand 734 streetcars, of
which 222 are modern streamliners.
and 622 buses. During 1910 total
revenue from streetcars amounted
to s6,404,179. while buses contrib
uted S4.632,535 to the total, the
Booker review states.
Because of the necessity for heavy
cash outlays in connection with the
purchase of new equipment, the
dividend policy of the company has
been most conservative. No dis
tributions were made in 1886, 1887
and 1888. In 1889 a dividend OF so
cents was declared, and in 1910 a
total of 81 was distributed. At
present the company is paying quar-
terly dividends of 25 cents a share
IN view of the fact that the COM
pany earned approximately $3.50 a
share in 1910 and $3.50 for the first
six months of the current year. the
present dividend of ST would seem
to be reasonably secure, the resume
asserts.
Increase in Gross Forecast.
Turning to the outlook, the analy-
sis forecasts further increase in
gross revenues due to expanding
governmental activities in Washing
ton. staggered hours which spread
traffic SO that the same number of
cars can carry a great many more
people, and the curtailment of the
private consumption of gasoline.
The Capital Transit Co is the
only public utility in the District
which is not earning a fair return
on the valuation. The summary esti-
mates that the value of the COM
pany's properties is now around
S35,000,000. A return on such a
valuation would provide earnings of
$3.50 a share, after deduction of
interest.
Net earnings in the first half Of
this year amounted to S645 AL,
which was more than the s567,112
net for the full year 1889. 1t also
compares with s393,266 earned in
the first half of 1910 The stock is
now selling around 1872, which is
practically the same as the high
mark in 1889. the summary discloses.
WHY Joins .Seidel Concern.
r. D. Wyly, for years head of
an advertising concern bearing his
own name, has joined Seidel Adver-
tiSing, Inc, national advertising
firm. in the American Building,
AS director of plans and market
analysis, it was announced today.
Mr.. Wyly began his career more
than 20 years ago with a big
advertising f1rm in Cleveland, as
an investigator of national adver-
tising conditions. From there he
went to Pittsburgh where he was
first account executive with another
large advertising concern.
Coming to Washington, he joined
the Tauber Advertising Agency,
later forming the firm of R. D.
Wyly, Inc.
House Committee Chairman.
Lundeen V. Steele of the Wash
ington Loan 81 Trust Co. West End
Branch has been appointed chair
man of the House Committee of
Washington Chapter, American In
stitute of Banking, it was announced
today by President John M. Chris
tie He is a graduate of the insti-
tute and has served on other i'm
portant committees.
Donald Borden. Riggs National,
and David w. Ward. Lincoln Ma
tional, are the other members of
the committee.
Heard in Financial District.
Sidney F. Taliaferro, vice presi-
dent and trust officer of the Riggs
National Bank, has returned to his
desk from a vacation which included
a motor trip through New England
G. F. Burton, president of the
City Bank, has returned from a va
cation at Rehoboth Beach, Del,
l. l. l.