Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-03-18
WoIfson BIames
D. {. Officials, Laws
For Earning Decline

sit Co., today again blamed Dis
trict officials. archaic regulations
and special privileges extended to
automobiles for his company's
decline in earnings.
His Scathing criticisms were
contained in the company's 1853
financial report.
The report said the transit
company's earnings declined 9.4
per cent from earnings in 1852.
1t also reported 1853 dividends
exceeded the net income by
! $685., TAP.
The board took the opportu-
nifty in its report to file general
bill Of complaints in advising
stockholders of their inability to
bring about needed reforms and
combat a type of public ap-
proach to transit problems that
is fast forcing" the company
into an ''untenable position. !"
They complained, also, that the
company has been brushed off
IN its desire to speed up service,
particularly in rail operations.
Raked Over Goals.
| In protesting earnings al
lowed. the company raked the
Public Utilities Commission over
the Goals for rendering merely
lip service to the need for earn
ing fair and reasonable return.
Downtown traffic conditions
were described as intolerable
and seemingly becoming worse
with each passing day. The
report also directed a shot at
the Engineer Commissioner and
Department of Vehicles and
Traffic. While detailed traffic
studies were submitted to these
ofhclals, the report said, the
result was primarily a suggestion
from them of further studies.
1t was an example of the
short-sighted attitude on the part
of some public officials whose
thinking still continues In terms
| OF the movement of vehicles
rather than people," the report
charged. 1--WE believe that the
condition will eventually become
so bad that some positive action
will have to be taken to unfreeze
this situation"
The report was prepared be-
fore the Capital Transit Co. won
a favorable ruling from Judge
Edward M. Curran in refusing
to prevent the company from
redeeming $50 million in ponds
/ and paying $384.000 in a quar-
ter's dividend to stockholders.
While the company had sought
to make this payment at an
early date, the Public Utilities
Commission had indicated it
will appeal the Injunction pro-
ceedings to the United States
Court OF Appeals.
To Press for Change.
The company said it will con-
tlnue to press for a change in
the "inequity'' of the Scent
school fare which it claimed is
a discriminatory burden" on
the transit rider.
The company's operating reve-
nues for the year totaled $685.
AL ,638, as compared with S29,-
139,745 in 1852, a reduction of
"a per cent. Operating expenses
were 0,9 per cent under the
previous year.
Income taxes for 1853.
amounting to $1,143,4O2, were
22.6 per cent less than in 1852.
Other taxes of $1,452.6 500 repre-
sented reduction of "a per
cent from the previous year.
! Net income for the year was
$960,258. This compares to a
net of $1,059,322 in 1852, the
report revealed, or 9.4 per cent
less.
Earnings per share in 1853
were 81; in 1852, $1.10 on the
same number of shares out
standing. In the first quarter of
, 1858 the outstanding shares were
placed on $1.60 annual divi-
dend basis. payable 40 cents each
quarter, as compared to 81 40 per
share paid in 1852. On this. the
report added
Although earnings did not
equal the dividend paid, the
Board of Directors considered it
equitable to distribute to the
shareowners out of surplus this
excess of dividends over earnings
for the current year since the
company's total capital at the
end of the year still exceeded by
nearly 81 million the rate base
upon which the company is per-
mitted to earn a return by the
Public Utilities Commission,
Dividends paid during the year
totaled $1,536,000 against total
net income of $96O,258 for that
reason.
For a SO per cent falling off
in total number of passengers
carried during 1858, the COM
pany pointed out a CLOSE rela-
tionship" to the approximate 10
per cent reduction in the num-
Der Of Government employees in
the Metropolitan Area.
The Glen Echo Park Co.'S net
income benefited Capital Tran
sit Co. to the extent of $91,377
in 1858, an increase of 1877 per
cent over the 1852 net.
ice Approves Boost