Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-30
Total $500. s64s, 7s4,os7 $676,25o,2os

June ........ ll5,ll4,393 1920, 346
Total go. .s64s. 7s4,os7 s676,25o, 2os
u C. g. p. Phone Earnings Up.
Telephone operating revenues of the
Chesapeake g. Potomac Telephone Co.
for May amounted to $685. 1929. against
k748,672 in May. 1880. the report OF
operations just filed with the Public
Utilities Commission shows. The total
operating income after deducting taxes
and uncollectible was $206,697, against
el47,468 year ago.
Telephone operating revenues for the
five months ending May 81 amounted
to $3,8366s4, as compared with So
6l5,744 for the same period last year
Total operating income after deducting
taxes and uncollectible for the first
five months of this year amounted to
$942,5l3, as compared with $706,98l for
the first five months of 1880.
Balance net income in May was
Sl51,5 sos, against $l04,335 in May, 1880,
and for the five months ending May
81 amounted to $742, 100, as compared
with $54l ,882 for the same period last
year. Taxes in May were $56,2l4, as
compared with $49.l23 for the same
month last year. Taxes for the first
five months Of this year were $278,-
400, an increase of $40.431.
and equipment added to the company's
system in the District of Columbia for
the five months ending May 81 amounted
to S882,524. Gross retirements during
this period we're $480,343, making net
additions $402.18l. Net additions to
plant for the IL months ending May 81
were $9li.499
Washington was served by 172,474
telephones on May 81, 1894 having been
added to the system since January l.
In May telephone users made 19,47l 900
calls, which was an increase of 5.3 per
cent over those made in the same
month of 1880.
Fifth District Business Reviewed.
According to the Federal Reserve
Bank of Richmond, there has been a
noticeable return of confidence during
the past week in the fifth district, and
while business continues Spotty, the
outlook for July is said to be better
than would have been expected
month ago.
Wholesale trade has not shown to as
good advantage as the retail trade. and
will be longer in feeling an upturn.
Wholesale figures announced by the
Richmond Bank show trade was less in
volume in all lines in May than in the
same month last year and that shoes
are the only reporting line to have
heavier volume in May than in April.
Stocks on the shelves of all lines were
smaller at the end of May than year
ago Wholesale collections also slowed
up curing the month, the reports from
IS firms indicate.
Essentially an agricultural district,
the crop prospects are reflected sharply
In trade conditions Farmers are buying
more than at this time last year and
their activities are offSetting some Of
the losses from industrial curtailment.
Trade was maintained on a moderate
scale in the Southeast last week, and
increased building activity was indi-
GATED by heavy orders. but drought con-
tinued to damage crops.
The first trainloads of Georgia
peaches and watermelons moved dur
ing the week. According to reports
both crops will be materially reduced
unless there is more rain.
Cotton and corn have not suffered
much where we'll cultivated, but nearly
half of the sweet potatoes, pimentos
land tomatoes have died.
Department store sales in the Atlanta
district are still above the 1929 aver
age, and wholesale stores report in
Creased business.
Bank Stocks and Earnings.
How can banks Show any consid
extremely low money rates?" A New
Yor!; statistical house has made a sur
Vev pr1 states that New York banks,
as a class, are not only making money,
but their margin Of profit on invested
assets is about normal. The survey
adds:
when interest rates are normal
conservatively managed New York City
bank usually averages q gross return
of about per cent on its invested as
sets and pays an average OF about
per cent on deposits. The difference,
amounting to about per cent, is the
gross profit or spread.
During the six-year period ending
with 1929 leading New York City banks
operated on about this basis. Their
average return on invested FUNDS our
ing these six years was approximately
S per cent and, AS 2 per cent was
consistently paid on demand deposits
and a higher rate on time deposits.
the average cost of their deposits was
a little over 2 per cent.
Since the first of this year interest
rates paid on demand deposits by New
York City banks have been twice re-
duced-in February, from q per cent
IN per cent, and late in May, from
/ per cent to one-half Of l per cent.
while interest rates on time and thrift
1eposits, which bear higher rate,
have been reduced proportionately.
BASED on information obtained from
authoritative sources we estimate thst
at the present time leading New York
CITY banks are paying an average rate
Of only about three-quarters OF i per
cent on aggregate deposits, and that
they are receiving an average return
Of about 3s4 per cent on loans and
investments"
Financial District Comment.
Arthur Foraker, William j. DuBose,
Harry e. Moore and william r. Ham
mill are now associated with Auchin-
Gloss. Parker & Redpath, the Washing
ton business of Eastman, Dillon 81 Co.,
having been taken over several days ago.
MANY local insurance men are plan
ming to attend the forty-Second con-
yention OF National Life Underwriters
Association to be held in Pittsburgh,
September 1925. at which leaders in
the business will make up the program.
The Mercantile Trust Co. OF Balti-
more, has declared the regular quarterly
dividend of $3.50 share, payable June
40 to stock OF record June 80.