Evening star., 1925-10-02
new PEPC0 STOCK a
TO SELL At % Y
Company Itself May Handle
FIotation-Traction in
Arrears of Dividends.
BY CHAS. p. SHAEFFER.

BY CHAS. p. SHAEFFER.
Final plans for the issuance Of ST.
100000 of new stock of the Potomac
Electric Power Co. were approved by
the Public Utilities Commission this
morning, who decreed the issue should
be sold at 981a, or one and half points
under its par value. The stock is
designated as the &c per cent series of
1926
have not yet been completed, but a
meeting of company directors will be
held early next week for this purpose,
1t Is understood. 1t would not be sur
prlslng to see the company itself han
ole the additional shares, with en-
ployes of the company holding prefer
entlal rights in the subscriptions.
considerable fuel was added to the
fire of rumor that Capital Traction
co. would soon seek an increased fare
for its lines this morning when
compilation of eight months reports
OF the company revealed a net in
come considerably in arrears Of divi-
dend requirements.
Eight Months Net Income.
Net income of the carrier for the
eight months of the present calen-
dar year, ending with August 81,
amounted to only $496 6,655.s7, this
amount being just $63,34413 shy Of
the $560,000 necessary to meet the
per cent dividend on $4,000. 900 cap
ital stock outstanding. For the same
period of last year the company had
deficit of slightly more than $4,000
after deduction of dividend require
mentS.
The falling off in net revenues this
year, as compared with last. cannot
be attributed to decreased fares. as
the carrier has actually hauled 244,4l4
more revenue passengers thus far
this year than in the corresponding
period of 1924. These figures. which
are exclusive of pay transfers, read
42,6s4,632 up to and including August
81. 1925, as against 42,440,21S in the
same months of last year. The main
reason for the decrease, as CLEANED
from monthly reports, Is rise in op-
Grating expenses, consistent month by
month.
August's report, just filed with the
Public Utilities Commission, shows
net Of 43.467, a decline Of approx
mately $1,000 over the same month
last year, the loss over last August
being attributed to gain in operat-
ing expenses of approximately that
amount.
Institute Opens Year.
The local chapter. American Insti-
tute of Banking. will begin active
functioning for the ensuing year to-
night, although the first lecture Is
not scheduled until next week.
AT their headquarters In the Ma
sonic Temple the membership will at
u lou ttv,cy hv>o
out the evening. There will be in
troductory remarks by President
CLANCY, in which the years program
will be outlined and detailed. Also
there will be the presentation OF GER
tificates to last years graduates by
Francis G.. Addison, jr., president or
the District Bankers Association.
Following in order Will be the award
ing of the Washington Clearing
House Association prizes by Jonn
Poole and the Charles j. Bell awards
by Howard Moran.
The main feature of the evening
will be an address by William Mather
Lewis. president of George Washing
ton University. Also there Will be
refreshments and dancing.
Linotype at New High.
A further new high was registered
by Mergenthaler Linotype on the local
board this morning when this most
popular of the ut-of-town issues sold
up to 1S9. its best level on recent
movements. Trading was restricted
to Is shares, the initial transaction,
involving 10 shares. bringing 1854.
1t was held at 1892 as the market
closed.
Capital Traction stock, no longer
selling ex dividend, had sales OF 81
shares at par and fractionally below.
Lanston was unchanged at 50. BOND
transactions were limited to three Is
sues. Washington Gas 5s at 80. the 6s
of the company at 1924 and Railway
general GS at 1t2A.
The local market Will resume sat
urday trading tomorrow.
Merger Report Denied.
Reports that the North American
Co. was seeking control Of Southern
California Edison and Pacific Gas aqd
Electric were denied by President r.
l.. Dame Of the North American Co..
who said his company did not own q
share in either Of the properties and
did not contemplate seeking any In
terest in them.
Seeks Large Bond Issue.
The Arizona Eastern Railroad sought
permission from the Interstate Com
merce Commission today to issue and
sell to the Southern Pacific Co.
S15,S91 900 in per cent bonds. The
funds would enable the railroad to
nay the cost of present construction
projects and to reimbur Sc its treasury
for expenditures on additions and bet
terments.
Bankers Praise Convention.
1>or ri cit
resumed the even tenor of it's way
this morning when the delegation at
tending the annual convention Of the
American Bankers Association at At
lantic City checked in. All agree the
conclave was productive of much con-
structive banking thought, but on
every side was heard many unkind
remarks concerning the plethora OF
mosquitoes on adjacent golf links.