Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-03
GAIN IN EARNINGS
SHOWN BY W.R. &E.
February Report Indicates
Net Was $4,000 Greater
Than Year Ago.
BY EDWARD c. STONE.

BIZ EDWARD L. S1ONEs
Total net earnings of the Washington
Railway g. Electric Co. in February
showed an increase over February, 1880,
according to the monthly statement
filed with the Public Utilities Commits
SIGN today, of more than $4,000.
The company reported that operating
revenues in February totaled $428,-
O2624, against the higher figure of
S440, 4204i in the corresponding month
last year. Operating expenses and taxes
required S363,168.31. compared with
$355,2ol.22 in February, 1880.
Deduction of operating expenses and
taxes left an operating income OF $64,-
1878. against higher income year
ago, SOS, 219.25. The corporation had a
incorporating income in February OF
$4I2,3643O, in comparison with $780,
291.13 in the same month in 1880. After
the other usual deductions the COM
panyS total net income amounted to
S420,18529, compared with $407, $50 .88,
an increase of $l2,528,4l.
The street railway company also filed
the statement for the first two months
of the present year. This shows oper-
ating revenues of $9O2,5e7I7, against
1929, 1894 in February, 1890; operat-
ing expenses and taxes, $755 ,298,90,
against $751; 5000 year ago, leaving
an operating income of STAT 29627,
compared with $165, 1875 in the same
period 1880.
The company had q incorporating
income of S435 $1,000, in comparison
with S406, e63.28 year ago. After all
the usual deductions from gross income
the railway company had net income
of $470,027.63, against $457, 02S.43 in
the same two months last year, an in
crease in net earnings OF over $4,000
Power Company Reports Slump.
The Potomac Electric Power Co. has
also filed its monthly financial state
ment with the Public Utilities Commits
sion. Operating revenues in February
amounted to S897,056.l9, against 1924
965.31 year ago, q falling of Of ST.
909l2. Revenue deductions took $448,-
936.29, against S420, 633.45 in February,
1880, a difference of $28, 302.85, leav-
ing operating revenues of $448, 1890,
against $5o4 ,331 SO last year, decrease
of S562ll96. After all other deduc-
tionS the power company reported a
total net income of S404, 43l.81, against
S45S, 485.70 in the second month of
1880, falling off in net Of 54,053.89.
For the t1rst two months of the
present year. operating revenues reached
the sum Of 1851 ,506.72, compared with
1882 ,52l.2l in the same period year
ago. a decline of S31,0l449. Revenue
deductions totaled ss44 ,54s.O5, compared
with 890,246.69, an increase of $54,-
30l SO.
Deductions left net operating revenues
of $9l6,985.67, compared with $1,000
274.52 a year ago, a decrease of $685.
1855. Miscellaneous income totaled
S52,427.57. compared with S34,9l128, an
tons the power concern reported a net
income for the two months of $827,-
088.76, compared with $685., 1882, a
falling of Of s65,60476.
Financial Statements Explained.
New financial books are being pub
lished rapidly these days. After a lull
of several weeks. publishers evidently
believe that the business outlook war
rants more activity. One of the most
interesting books that has appeared in
some time is entitled What the Figures
Mean" written by Spencer B. Meredith,
and brought out by the Financial Pub
fishing Co. of Boston.
The author takes up the items, that
make up balance sheets and explains
the rnsaning of each and its Importance
He goes further and lists actual aver
age ratios which shed added light on
the figures. For his illustrations he
hes analysed Sis companies in 80 indus
tries. For example, he finds that cash
on hand averages 667 pr cent Of
current assets in the shipping industry,
but only IA per cent in the agricultural
machinery business. Obviously, 1t would
be unwise to measure a company in
one field by the standards of another.
Mr.. Meredith. member of the Amer
lean Statistical Association, originally
prepared some of the chapters in the
book for statesmen for a large invest
msnt house. The book is short and Of
special interest to those who do not
understand ths full purport of financial
statements. 1t will be popular with
many JUROR bankers.
Pennsy Rail Earnings Compared.
The net income of the PENNSYLVANIA
Railroad in 1880, per share (par $500,
was 1923, compared with $3.50 in 1929
Increase or
Railway operating
revenues 800. s57O465 $50 D sll2,237.57I
expenses, taxes.
hire OF equip
ment, etc.. 47s2s3 800 D 7I27s 500
Net railway oper-
at3ng income .. S92i61.557 D S40e5S,O6q
Eon-operat.nE in
come. chiefly
dividends and
interest from Sc
curities owned 552s6677 s475.I77