Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-07-27
POWER COMPAN
EARNINGS REVEAL
$4,000 JUNE. GAIN
Potomac Electric Also Re-
ports Substantial Increase
in First Half Year.
W. R. & {. NET SLUMPS
In SIX-M0NTH PERIOD
WkAt Street Car Lines Will Earn
Under New Rates Puzzles Local
Financial District.
BY EDWARD C. STONE.

GOOkAASu ~ HlON6s
Another substantial increase in
monthly earnings is reported by the
Potomac Electric Power Co. to the
Public Utilities Commission in its June
financial statement. The corporations
net income for June totaled $3.50, 628. rs
in comparison with $3l2,425.5O in the
corresponding month of last year, a
gain of $2620328.
The power company reported OPP
Grating revenues of $814,816.33, against
$2l ,8l4.32. Revenue deductions amount
ed to $3.50, 48l.18, compared with $419,-
2l9.65 year ago, difference of ST.
SO, leaving net revenues from OPP
erations of $3s4,335,15, against $373,-
1926 in June. 1929, a gain of &c.,
55279
In the summary for the first six
months of this year the power COM
pany reported operating revenues Of
&5,253, 1883, compared with $4969,-
e73.10 in the first half of 1929, an
Increase of $2S4,702.53 Revenue de-
auctions required $2,623,7 1883, against
$2,517,7l7,93 in the same period year
ago, or an increase of $106,055.45. This
left a total net income for the six
months of $2,337 ,55e,s1, in comparison
with s2,072.795.19, or an increase to
date this year of $264, 764.12.
w. r. q F. Earnings Also Reported.
For the month of June the Wash.
ington Railway 81 Electric Co. has re-
ported to the Utilities Commission net
operating earnings of $4l2,055. Is,
Grating expenses and taxes required
S34o,027.28, against 1866 last
year. leaving an operating income of
S72,027.S8, contrasted with $7l.3lO.O9
in June, 1929. After all other deduc-
tons the company reported net earn
tngs of s36,094.3s, against $38, 1868
last year.
The Railway & Electric six months
summary shows operating revenues of
S2.49s 225 81, compared with $3.50
507.84; operating expenses and taxes
OF $2.0f1 ,550.25, against $2,i61 ,306. SIS,
leaving an operating income of $483,-
$3.50, in comparison with $526, POI SIS
q year ago.
After all the other deductions the
street railway company reported net
income for the half year of 1888, ITO SO
half OF 1929, or an increase in net this
year of $t3.48696.
From the June figures it is evident
that the railway company felt the keen
competition of the 35-cent cabs that
have recently been so active. Yet earn
ings are better than a year ago for
the half year. All public utility COM
panies in the city have now filed their
June reports but the Capital Traction
Co.
Future Earnings Big Question.
How much will the Washington street
car companies gain or lose by the higher
carfares now in effect? That has been
the most important question discussed
in the local financial district during
the past week, both by holders of the
stock and financiers. interested in these
issues.
At the time of the hearings on the
request for higher fares, held more than
year ago, 1t was announced that the
Washington Railway d. Electric Co. had
carried during the year ending April 30
1929, about 65.800.0O0 passengers and
that the Capital Traction had carried
during the year approximately $500 600
passengers.
It was estimated by the streea railway
ofhcials that the increase in fares COL
lected from the total of about 12l ,000,-
600 passengers would mean an addition
al revenue of $750,000 to be divided
between the two companies.
Since that time. however, there has
been a falling of of about 9.00e, 900
revenue passengers q year. Ofhcials
of the two companies and their direc-
increase of perhaps $3.50, 900 would be
nearer the addional revenues than esti-
mated at the time of the hearings. II
the present 35-cent taxicab competition
should become permanent.
Higher Revenues Predicted.
Officiais, however, believe that condi-
tions will improve enough so that
Capital Traction can earn around 2
per cent on the stock. What the higher
fares will mean hinges almost entirely
on the taxiccab situation, they say,
adding that there are not nearly as
many Of the cheap taxicabs on the
Railway passenger traffic figures already
show an increase, indicating to the
officials of the two companies that the
cheap taxicab service is breaking down
rapidly. So many cabs were placed In
service that the drivers have been I'M
able to make a good living, is the view
taken at the railway offices.
While MANY people believe the higher
street car fares will mean lighter travel
on the car lines, regardless Of the taxi
situation officials do not share this
belief. And If Capital Traction Is able
to increase earnings the larger profits
are likely to be shared with the stock
holders. At least such policy has been
followed in the past the company
dividend history shows. Offlcials admit
that a continuation of the present sit
uation would absorb most OF the ex-
pected increase In earnings.
Capital Traction closed the week al
677s, is paying per cent and yields
So per cent Railway g. Electric COM
mon last sold at $50 and yields IL
per cent while the preferred sells al
% and yields 81 per cent.
an increase in earnings was reported
~ both companies during the f1rst few
days of the new schedule. The August
reports, however. will be the first u
reveal the real trend.
Cost Of Living Of 2.s Per Cent.
An average decrease Of 2.s per cent
during the six-month period from De-
cember, 1929, to June, 1890. in the cost
of livir6 - the United States Is shown
oy the ngures complied by the Depart
ment Of Labor
In compiling the figures the bureau
made a survey of 80 cities in which
the decrease in the cost of living variec
from 0.6 per ce-.s to 40 per cent
Prom June, 1929, to June 1880, averag'
cost of living decrease 81 per cent Will
from the peak Of prices in June, 1920
to June 1889. average decrease was 23.i
per cent. June, 1880, cost Of living In
dex for the United States was 1868 pei
cent based on 1918 as 1000.
Food prices show the greatest de-
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