Evening star., 1922-01-21
v. R. & {. REPORT
EVERY GRAT|FY|
So Says President Ham in
Discussing Annual Exhibit
of Company.

IHSVOH ISdllWdy anu WI"
pany and its subsidiaries showed sub
stantial Improvement during 1921, ac-
cording to the report of William f.
Ham, president. submitted to the an
nual meeting Of stockholders today.
The company's figures for the year.
subject to revision upon final audit
of the accounts, were given by Mr.
Ham as follows:
Gross earnings from operations. So
45S6yJ6l; u,,s>e,ianeouS incoine, ~
cluding dividends from the Potomac
Electric Power Company. S654,all.56.
Gross income, s6,1l0.lSo.T:
Operating expense, including depre
charges. si.3Sa.es1.o5: Interest on
funded and unfunded debt. $!i2.-
960.5S; payment of per cent dMdHt- M
dend on preferred stock. Si2o,ooo.
Total, $5,5SO,S91.63.
Balance for 1921.
Deducting this from gross income
sssfs esesssa 'sanss so profit for and the s5s
2s7.54.
Discussing this showing. Mr. Ham
told the stock khoidersi =
From the foregoing statement II
will. be seen that the company nd ra
r,lade material progress as compareu
with recent years. With the excep
tion of dividends from the Potomac
Electric Power Company. no income
was received by the Washington fsail-
way and Electric Company on IT'S
investments in >stOck OF subsldiary
companies. 1t is. however. gratifying
that the subsidiary railway companies
show an operating proht 10 tne par
ent company twithout any allowance
for return upon investmenD OF Sao:
GG5.30. as compared with an operat-
irG loss of S199.79S.26 in 1919.
Cut ip Fare Factor.
"puring the first eight months of
the year the rate of fare Wlthln the
District of Columbia was cents caSn
cents. during which period the aver
age fare was 1.53 cents per nay passeh
ger. BY order of the Public utiiities
Commission of the District or Cofum-
bia. effective September L. l9sl. tne
rate of fare was reduced to cents
cash or tickets at the rate of five for
rs cents. such rate to continue IN
force until March l.. 1927 rms re-
duced the average fare during tae
last four months of the year 70 .,9o
cents per pay passenger. Manifestiy
the earnings for the year woulo
have been materially less if the pres.
ent rate of fare had been in erect
during the entire year, H. v.s,ington
Railway and Electric Companys sFs.
tenn carried 111,111,0o2 passengers. OF
whom 25.629.396 were carried on trans
fers The number of pay passengers
carried. as compared with l92o. de-
creased 23Ol,O2S, equal to 2.62 per cent.
When considering the curtailment in
the number of government employees
and the general business depresSlon.
this is a very satisfactory showing ana
reflects the stability of Washington as
community.
Improvement During Year.
THE Improvement shown during the
year, while due primarily to the higher
rates in effect the greater portion OF
the year, has also been the result OF
materially increased efficiency and op-
Grating economies. There is notice.
able increase in the efficiency of en-
ployes in each and every department.
This is well illustrated by the reduced
number Of new trainmep employed.
During 1921 only 285 new trainmen
were put into the service. compared
with 667 in 1920. and 1870 in 1919.
THE expenditures and allowances
for maintenance and depreciation of
track and roadway have again reach
ed large proportions. the total for the
year being s1,0S1, 1,615.13-
p. e. p. Co. Growth
There has been no interruption to
the rapid growth of the business OF
the Potomac Electric Power Com
pany. Its customers have increased
from 4S.122 to 54.SS6. an increase OF
6.T64. The output of the Benning
plant was 23S.023.6S3 k. W. hours,
an increase of 2.151.729 k. w. hours
over the preceding year-equal to
953 per cent. This continued eX-
tension has required expenditures for
capital improvements this year OF
sI.431 .259.23.
"The plans for the year 1922 call
for capital expenditures of approx
mately Sf.250,000. which, in the main:
will provide for new 1850 X. W.
6o-cycle turbo generator WIN its
necessary auXiliaries. the erection OF
an additional substation. the install
lation of additional cables and sub
station apparatus. together with the
ordinary general extensions required
for new business
Full Dividend Paid.
During the year the full dividend
of per cent has been paid on the
preferred stock in the usual quarter.
ly periods. but no dividend has been
paid on the common stock. The COM
pany now has 2.290 stockholders. of
whom 1.2S2 are women, trustees, and
charitable. beneficial. religious or
other similar organizations. Over o3
per cent of total stockholders are
residents of the District Of Columbia.
The company and its subsidiaries
had in their employ at the end of the
year. 2,491 employees. with pay roll
for the year aggregating $4.021.21S.62.
a decrease of s3s6. 6.ss14o. of s36 per
cent as compared with the preceding
year. This showing. while somewhat
due to reduced rates in certa in class
es of employees, is primarily brought
about by reorganization and econ
omies effected in other ways.
Total Bonded Debt.
The total bonded debt of the
Pail -;
Company and it's subsidiaries, inc!ud-
ing the Potomac Electric Power Com
pany, now outstanding with the pub
lie. is S3o.707,S5o. which includes the
new Potomac bonds previously re-
Addne to- TO hs sGd the sI1
stock of the pareAt company and
S104.650 outstanding capital stock of
subsidiary companies makes total
outstanding capital at this time of
Si5,S12,50O; This excludes from out
standing bonds those purchased for
sinking fund and temporary invest
ment. except such bonds as have been
bought for investment of the i'm
pounded fund.
TT is gratifying to note the i'm
that has taken place in the past year.
Both it's bonds and stocks are SELL
Ing at materially advanced prices.
~ Adequate Rates Necessary.
~The continued development of
both the Railway and Potomac COM
psnies is dependent upon their re-
ceiying adequate rates for services
rendered. AS already shown, large
sums OF money are required to pay
the cost of necessary additional fa-
cifitieS and also the companies are
confronted with the necessity of re-
funding next year s3.600,000 Potomac
Electric Power Company general