Evening star., 1933-01-22
Depression, Pay Cuts and
Taxis Cause S431,578 De-
crease, President Asserts.
INCREASE IN SURPLUS
NOTED BY OFFICIAL
Annual Report Shows Potomac
Power Sales Up 8 Per Cent.
All Officers Reelected.
BY EDWARD c. STONE.

BY EDWARD c. STONE.
President William F. Ham of the
washington Railway g. Electric Co. told
ghe stockholders at the annual meeting
yesterday that revenues for the year
1882 were materially affected by de-
erease OF street car riding attributable
tn general to the business depression
knd in particular to the reductions in
Ahe income of Federal and District
Government employees. and to the in
kreaSed inroads upon the transportation
business resulting from the competition
pf unregulated taXicabS. The decrease
p net operating revenues amounted to
S431,578
In comparing earnings with the pre-
tiouS year, President Ham reported that
operating revenues amounted to $4,533,-
S32, a decrease of S753,432. Operating
expenses. maintenance, taxes and de-
probation amounted to s4,151 ,587, de-
crease of 1922 ,260. During the year the
company carried 69,408. TAO passengers,
including 16,933,686 transfer passengers,
decrease of II per cent as compared
with 1881.
incorporating revenues. which in
clude dividends from the Potomac Elec-
trlc Power Co., subsidiary, amounted
10 Sl,969,414, an increase Of S118,410.
Surplus Shows Increase.
After deducting interest charges of
1886, ,450, the balance for dividends and
surplus amounted to S1,714809, a de-
crease of S3O8,62S as compared with
1881, After the regular dividend pay
ments in 1882 the total accumulated
surplus as Of December 81, 1882,
amounted to S11,590,277, an increase of
$3.50, ,l48, Mr.. Ham stated.
The leSsened earnings from railway
operation during the year did not affect
the companys policy of making ade-
quate expenditures for the maintenance
Of its property in first-class operating
condition, the amount of S699000 so
expended during 1882 being substanti-
ally the same as in 1881. Net additions
required expenditures of Sl80O00.
An act authorizing voluntary mer-
ger OF street railway and motor bus
companies operating in the District of
Columbia became law January IA, 1888.
In due course the plan developed will
be submitted to the stockholders for
action, the official said.
Electric Sales Up Per Cent.
Washington Railway & Electric Co.'S
principal interests, other than trans
portation operations, are in the Potomac
Electric Power Co.. a subsidiary which
supplies electric service in Washington
and adjacent sections of Maryland
Dividends on the company's subsidiary
holdings are included in incorporating
revenues, shown in the income state
ment.
During the year 1882 electric sales
by Potomac Electric Power Co. amount
ed to S82, ,460,264 kilowatt hours, an in
crease of 9 per cent over sales for the
preceding year. Electric meters con-
nected to the lines at the end of 1882
numbered 172,435, an increase of
per cent.
Normal maintenance Of plant and
equipment during 1882 required the ex-
penditure of $632, ,129. Net expenditures
for additions to property amounted to
$2.610,255. The continued increase in
the demand for electric service neces-
STATED plans for additional capacity
The company purchased property for
and began work on new steam cleo
trio generating plant at Buzzard Point,
the junction of the Potomac and Ana
costa Rivers to be known as BuzZard
Point station. The initial unit Of 35,-
900 kilowatts capacity is expected to be
In operation in about a year and the
plant design provides for additional
units to increase the capacity to 100000
kilowattS
Work was also begun on a 100000
volt transmission line % miles in length
between Washington and Ellicott City,
Md, interconnecting the company's
lines with those of the Consol dated
Gas, Electric Light & Power Co. of Bal
timore for the purpose of making
available an outside source of power
supply from the Safe Harbor hydro
electric plant to supplement the COM
pany's own capacity.
On February /, 1882, Potomac Electric
Power Co. put into effect the eighth
consecutive annual reduction of its cleo
tric rates. which resulted in savings to
customers during the year amounting to
approximately $860,000. The reduction
applied to all classes of service, ard in
addition to lower initial rate for res
identia1 customers the promotional type
of rate adopted provided further reduc-
tionS based on greater use of electricity.
This reduction of rates was greater
than provided under the consent decree
in effect since January l, 1925, which
has resulted in annual reductions dur
ing the intervening years. The order
of the Public Utilities Commission Of
June 8, 1881, undertaking to modify
some of the terms of the consent decree
is now pending on appeal, Mr.. Ham
added
Companys Income Statement.
The Washington Railway & Electric
Co. income statement follows:
Operating revenues for the II months
ended December 81, 1881, S5,287 27013;
for the II months ended December 81,
1882, $4,533,432.02. Operating expenses,
maintenance and depreciation for the
IL months ended December 81, 1881,
81 4,063 ,23302. plus $410,613.89 in taxes,
473,846.91; operating expenses,
maintenance and depreciation for the
IL months ended December 81, 1882,
$3.798O85.64, plus $3.50, ,500.98 in taxes,
81, Isl ,586.62.
Net operating revenues for the II
months ended December 81, 1881, $813.-
1922; net operating revenues for the
IL months ended December 81, 1882,
1881 ,845 40. Incorporating revenues
for the II months ended December 81,
1881, 81 ISL ,004 81: incorporating rev.
enues for the II months ended Decem-
Der 81. 1892, sl,969,4l4O8. GLOSS in
come for the II months ended Decem-
Der 81, 1881, S2,664, ,428.O3; gross income
for the II months ended December 81,
1882, S2,35l ,259.48. Interest charges for
the IL months ended December 81, 1881,
$640 990.66; interest charges for the IL
months ended December 81, 1882,
$685., 6,450.33. Balance for dividends and
surplus for the IL months ended De-
cember 81, 1881, S2,02343737 balance
for dividends and surplus for the IL
months ended December 81, 1882,
$l,714.809.15.
Srrnl1s Statement-Ralance necem-