Evening star., 1943-06-27
Transit Earnings Cut
Il Per Cent Below
Year Ago in May
Higher Operating Costs
More Than Offset
Rise in Gross
BY EDWARD C. STONE.

Due to much heavier operating
expenses, net income of the Capital
Transit Co. In May. which amounted
to $l3s,259.59, was s51,907,96 lower
than last year, drop of 212 per
cent, according to the monthly state
ment filed with the Public Utilities
Commission yesterday.
Net income in the first fiye months
Of the year, however, was ahead of
1912, the total OF $685., 1882 dis
closing a gain of $37,259.s4, or 5.s
per cent.
Operating revenues in May of $2.-
1927 were $432, ,404.39, or 21 Der
cent ahead of the same month last
year. However, operating expenses
required sl,480,312, an increase of
$252944, or 20 per cent. The Nav
tax total Of s56S,576 was $lsl ,7os, or
5l.6 per cent, higher than last year
Depreciation was up 1000, or 20
per cent.
The increased expenses made the
operating income $4,000 less than
last year, incorporating income was
down $1,000, leaving a reduction In
gross Of ISL $50, or 20 per cent. The
company carried 36,867, ,674 revenue
passengers. a gain of 7,729,013, or
26.5 per cent.
Taxes Soar In Five Months.
The Transit report showed So
$50, 1881 set aside for taxes In the
first five months of this year. an
increase Of 81 lilo, ,528, or 76 per cent.
While operating revenues of $I1,-
768,560 were s2,911 ,S06, or 80 per cent,
ahead of last year operating ex-
penses increased by 81 ,529, ,746, or 26
per cent. Depreciation was up 30
per cent, or $220,830 more than a
year ago.
In the five months, gross income,
after expenses, was up only $53,307.
or So per cent. Deductions for
interest payments were slightly
heavier than last year.
Revenue passengers rose 174,6s3.-
283. an increase of 46,773,310 or SO
per cent over the like 1912 period.
an amazing wartime gain.
Pennsy's Operating Net Up,
Net railway operating income of
the Pennsylvania Railroad in Nav
reached s13 1868, 900, a gain of ST.
327 ,808 over May year ago, it was
announced yesterday.
Freight revenues Of $56, 6,485, 1882
were s3,607 400 ahead of last wear
and passenger earnings totaling
$20,066, ,443 were $7,36l, ,O42 better
than year ago. At the same time
general transportation expenses
showed an increase of s6,431,341.
In the first five months of this
year net operating income amounted
to s44.o3o,56o. jump of ss,s4i, ,683
over the like 1912 period. Pas
senger revenues showed the best
gain, the total of s90,7l3, ,562 being
$35, 1855 $50 ahead of last wear
Freight revenues amounting to
$267, ,ll9,348 were s35, 1927, $50 over the
same 1912 period.
Railway operating expenses were
SOL .490,084 more than last year and
railway taxes s17,sl7,s44 heavier,
the report showed.
Many New Investors Seen.
The Investment Bankers Associa-
tlon, IN a report received here yes
terday, predicted there will be 75.-
100000 potential new investors after
the war on the basis of new bond
BUYERS created by war financing.
The report also predicted a great
deal OF refinancing of short-term
debts contracted by industries dur
ing the war. an active part by the
association in helping the Govern
ment handle the war debt and "un-
precedented" demands from indus
try for new capital.
New capital demands for the first
three years following the war NAV
reach $4,000, 900, 900 a year, the sur
yey asserts.
Hoover Sends Greetings.
William D. Hoover, chairman of
the board OF the National Savings &
Trust Co., who is i'll, sent special
greetings to the reception at the
Statler Hotel late Friday, in connec-
tion with the unveiling of the por-
trait of President Bruce Baird
which will be hung in the directors
room at the bank.
Col. Walter c. Clephane. who pre-
sented the picture, is the dean" of
the board. and Lewis T. Breuninger.
master of ceremonies, has a long
record as director. About $50 were
present, including many guests from
other banks.
Controllers Plan Election.
The annual outing and election of
ofhcers OF the District of Columbia
Control of the Controllers Institute
of America will be held Tuesday at
the Columbia Country Club.
The event will begin with a lunch
con. scheduled for l pm. Golf play
Will begin an hour later. The cleo
ton and other business will follow
the dinner, which will be served at
8 o'clock.
Mcgee to Address Shippers.
Caleb r. Mcgee of Washington.
manager of the Open Top Section
OF the Car Service Division of the
Association of American Railroads
Will be one OF the principal speakers
at the 56th meeting of the Great
Lakes Regional Advisory Board, in
Cleveland, on Wednesday. Mr.. Mcgee
will talk on national Transportation
conditions.