Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-03-01
TELEPHONE COMPANY EARNINGS
SHOW A DECREASE IN JANUARY
Drop of 81, 431 in Net Income From Deem
Der Shown in Report-D. J. O'Brien
MayAower Head.

main here only long enough to get
the hotel well started, but was pre-
vailed upon to remain. lie now con-
slders that the success attained gives
him the right to relinquish the re.
sponsibilitles. After remaining here
about week to advise with the new
management he plans to go to his
country home in Connecticut for
short rest. Arthur J. Hernett, the
present resident manager, has been
elected vice prsidnt to fill the va
cancy caused by the promotion of Mr..
O'Brien.
Capital Traction Report Sent Out.
The directors Of the Capital Trac.
ton Co. today mailed printed copies
OF the 1925 annual report to all stock
holders. In 1t President Hanna says
It Is encouraging to note that for the
first time in several years an increase
over the preceding year Is shown in
passenger revenues. accompanied by
slight reduction In operating expense.
The gain in revenue was small and
entirely due to expansion in bus bust.
ness. Receipts from rail revenue
alone showed q slight loss.
Net earnings for 1896" the report
says. fell slightly under the require
ments for n 7 per cent dividend, but
the directors felt entirely justified in
using undistributed surplus of past
years in making up the small def
cheney"
While the decrease from railway
passenger revenue was over $4,000,
yet the increase i'm bus passenger rev.
enue reached $92,754 for the year.
Gross income showed a gain Of
$24,413. while the total net income
after all deductions Of $780,, S6S.S4 re-
vealed an Increase of $14,396.90.
Reserve Credit Demand Grows.
The Fifth Federal Reserve Bank Of
Richmond reported today that the de.
mand for reserve bank credit in this
district expanded slightly between the
middle of January and the middle of
February. The volume of rediscounts
for member banks rose from $21 $780,
900 to $23 1865, 600. Total bill holdings
at the reserve bank declined from over
$35 100000 to $33,S40,000. The value
of Federal reserve in actual circula-
ton also dropped. as did member bank
reserve deposits
A smaller volume of reserve bank
credit was outstanding at the middle
Of February, the report said, than at
the same time "a year ago. The
volume of rediscounts for member
banks held by the Richmond Federal
Reserve Bank totaled $23,65S.00 on
February 10, 1927, compared with $780,
191 600 on, February Is, 1925.
Member bank reserve deposits were
higher this year, totaling $69.175,0 200
on February Is, compared with $685.
629, 900 year earlier. The actual cir
culation of Federal reserve notes
stood at $74.493,000 on February Is,
1927. and $79,964, 900 on the same date
in 1926. Total cash reserves amount
ed to $110.956.0OO at the middle of
February this year, while year ago
they were $103.9S4.000
The ratio of cash reserves to note
and deposit liabilities combined rose
during the year to 74.89 per cent from
6S.7S per cent in February. 1926.
Thirteen Creameries Sold.
Thirteen creameries of Southern
Diaries, Inc, located in Maryland and
Pennsylvania, have been taken over
by the Western Maryland Dairy Cor.
poration. In addition, the Western
Maryland has absorbed the business
of Ditch Brothers, operating the
Farmland Dairy. Acquisition of the
Southern Dairy creameries will add
an average of about 5000 gallons daily
to the raw milk supply of the West
ern Maryland, it was stated.
Bank Adds New Director.
Paul Lesh, member Of the Wash
ngton law firm of Peele, Ogilsby &
Lesh, has been added to the board OF
directors of the Central Savings Bank
President Francis NJ. Savage an
nounced today.
Local Securities Again Strong.
Stocks and bonds were again strong
| on the Washington Stock Exchange
today. Capital Traction maintained
yesterdays new high at 1O7A; A
shares of Mergenthaler changed
hands. closing at 1925; American
Security & Trust came out at 377
and Federal-American National sole
at 800. The active bond market was
led by Georgetown Gas 5s, which solo
at 100.