Evening star., 1951-03-16
Bus Operation Costs
Hit Hardest in Cuts
By Capital Transit
By Donald B. HodIey

In reducing operating expenses
1925 $50 during 1850. the Capital
Transit Co. made the sharpest
cuts in the maintenance of buses,
the annual report of E. D. Merrill
president and board chairman,
disclosed today.
Although the number of miles
covered by company buses in 1850
was within l per cent of the pre-
ceding years figure, the main
tenance of plant and equipment
for their operation, plus operating
garage expenses, were trimmed 10
S4,045 ,057. compared with S4,469,-
947 in the previous year-a drop
OF 9l2 per cent.
Streetcar mileage was cut 14.8
per cent in the year, because of
fewer passengers, the report said.
The company was able to lower
railway maintenance of ways and
structures and equipment to
S2.227, ,933, compared with $500
500 in the previous year-a cut of
Is per cent.
Injury Provision Raised.
Expenses at Glen Echo amuse-
ment park also were reduced S27,-
054, to $215,278 from S242,332
spent in the previous year, How
ever, the company increased pro-
vision for injuries and damages
from Streetcars and buses to ST.
095,03 from S1,051, ,595-a boost
of $43.437.
President Merrill's report point
ed out that for the eighth success
sive year, the company in 1850
was awarded the maintennce eff
ficiency award of the magazine
Bus Transportation" 1t also was
the winner in its class of the
American Transit Association an
nual safety contest. It was a
close second in the previous year
and was first for five preceding
years.
AS previously reported, net in
come of the company in 1850 rose
to S905,857, against $332,100 in
.l949. After payment of $720,0OO
i'm dividends, $185,857 was trans
ferred to earned surplus, raising
that account to $5,352.115 at the
end of 1850, compared with S.
l66.258 a year earlier.
During the year, Mr.. Merrill
said, the company adjusted serv-
ice to the reduced number of pas
.5engers using streetcars and buses.
These economies, together with
"a reduction in personnel in
the maintenance and supervisory
forces" " he said, resulted in de-
creased operating texpenses in
spite of increased wage rates.
Increased used of automobiles
continued as Capital Transit S
greatest competition, according to
MI. Merrill. He said automobile
registrations in the Washington
area increased another 7 per cent
in 1850 and are up so per cent
since the end of World War II.
The number of company passen-
gers in 1850 was IL per cent below
the 1949 total and 33 per cent
below that of the peak year, 1914.
The increase in private automo-
bile use, despite the difficulty of
finding parking space and the in
crease in parking fees, has added
to the traffic congestion problem,
said Mr.. Merrill.
Our vehicles are finding it
more and more difficult to get over
the streets on schedule. This is
costly to the company and incon-
Ivenient to our passengers.
Funded Debt Reduced.
With retirements of equipment
and land sales totaling $795, ,237
during the year, additions to
plant came to only $259,291,
causing a net reduction in COM
pany plant by $535, ,946 in the
year. Part of parcel 27/45 on the
Cabin John line, abandoned right
of way and two lots at 1109-L
Michigan avenue NE. were the
properties sold.
The company purchased 81
million of its bonds on the open
market in 1850, thereby reduc-
ing funded debt outstanding in
the hands of the public to So
million and saving annual inter
est charges amounting to $4,000