Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-11-17
$12> $4,000 Total
Borrowed by Chalk
Transit Buyer
Put Up Only
Half Million
BY HECTOR MCLEAN

Washingtonians today got
their first chance to evaluate the
deal in which o. Roy Chalk, new
District transit operator, bought
the system for $13,54O,OOO on an
investment OF only 100000.
A third major loan, bringing
his total borrowing to $12,978, 900,
was disclosed late yesterday
when his D. c. Transit System
filed with the District Public
Utilities Commission its first
financial statement on operation
since Mr.. Chalk bought out Capt.
tai Transit Co. last August Is.
Total purchase price was $l3,-
$4,000. The down payment of
$96 million was broken into two
parts. First. Mr.. Chalk put up
$500,000 in a cashiers check on
Chase Manhattan Bank of New
York as an evidence Of good
faith. Later, when the deal was
closed. Chase Manhattan gave
etc a check for $9.1 million.
The balance of S3.878,0 secured
by the real estate bought from
CTC, was to be paid to CTC-I
now renamed the Universal Corp.
over is years at S per cent
interest.
Mortgage on Buses
At the same time, however,
Mr.. Chalk gave Chase Manhat-
tan a capital mortgage for five
years on his newly acquired
buses for $3.5 million at 5 per
cent interest. The first payment
was due last Thursday.
And. it was disclosed yester-
day, he also gave Chase Man.
haitian notes for $5.6 million at
4 per cent interest payable next
December /. January 2 and
February /. The total of these
. two loans is $9.l million.
Stock investment in D. C.
Transit. a wholly owned sub
sidiary of Mr. Chalk's TEA In
vesting Co., is listed as $500 900
with 5000 shares issued of the
transit funds authorized 100000
shares. which have a par value
Of $100 each.
Among the assets which Mr..
Chalk got from etc was SIS.
million in cash. A commissions
spokesman said 81 million of this
had been transferred from the
American Security g. Trust Co.
Of Washington to Chase Man.
haitian, with SIS million pledged
to cover the notes for that
amount.
While etc had no long term
debt, D. c, Transit listed $6.5
million in notes payable in one
year, plus $6,478, 900 in notes pay
able after one year.
Two Income Statements
The company filed two income
statements. One was for the
last II days of August, and the
other covered the month of Sep
TENDER. The September report
showed a AZ per cent drop in
passengers, listing 1887 1877 pas
sengers last September. as COM
pared to 14.424,739 carried by the
old Capital Transit Co. in the
same month a year ago.
A summary Of the two state
ments listed total operating rev.
enues of $3,084 $50 and a net OPP
Grating income of $71.081. Al
lowing for a incorporating in
come OF $3.50 and $76.197 in de-
auctions from gross income, the
report showed net loss for the
month and a half of $4,836.
The report for the last II
days OF August listed operating
expenses of s957,693, which in
cluded $4,000 for a retroactive
wage increase recently negoti-
ated with the transit workers
union.
Net operating income for the
last II days of August was listed
at $18,629. which compared with
a net operating income of $685.
900 reported by Capital Transit
Co., for the first IA days of Au-
gust. A commission spokesman
pointed out that the figure was
reduced by calculation of the
retroactive wage increase and
by income taxes which d. c.
Transit expected to have to pay.
Capital Transit Co. had listed
nothing for income taxes. be-
cause it claimed 81 million
write-off of its investment in
street railway trackage.
D. c. Transit, therefore.
showed a net income loss of
5000.
The September report, how
ever. showed a net income gain
OF 1929.
The September net operating
income was listed at s52,452
without allowing for Sl84 Of
incorporating income and S49.-
40S in deductions from gross in
come for payment of interests
on loans.
The d. c. Transit balance
sheet listed an earned surplus
deficit. available for stockhold-
are dividands of S6 o1Q