Evening star., 1933-05-31
C. & ?. NET INCOME
DECREASES sz,58
April Balance Sheet Reveals
Loss in company's 0p-
Grating Revenues.
BY EDWARD C. STONE.


Total net earnings of the Chesapeake
& Potomac Telephone Co. in April
amounted to $142,e00,i against balance
before dividends of $150,496 in April
1882, a decrease of s7,5s6, according tc
the monthly financial statement just
filed with the Public Utilities Commis-
sion. While operating revenues were
considerably lower than in the same
month last year, substantial reductions
in operating expenses made the drop in
net earnings very slight.
Operating revenues for the month
totaled $760,36s, against ss14 48s IN
ApriI 1882. Expenses totaled $3.50, ,505,
compared with $592,153, leaving net
operating revenues of $685. 1853 as COM
pared with 1922 1886. Deduction OF
operating taxes left net operating in
come of Sl69,855, against S165,2 ,28O a
wear ago. Interest deductions took
S27.O33, against S21 ,236 year ago, leav-
ing the above mentioned net income
for the month.
The financial statement for the first
four months of the present year shows
operating revenues OF $3,056,561, COM
DdreQ WIFI oo,zzo'1ot 90, /,
operating expenses of So, ,165, ,7l9, against
81, 3Ol ,944 and balance before dividends
of S535. 1886 in comparison with $629,5O3
in the like period a year ago.
washington telephone users made a
total of 1899, 1000 calls during the
month of April, which is approximately
100000 fewer than the calls made
during the same month year ago.
In April, 1882, there were 4,874 more
telephones in service than in the cor
responding month this year. according
to today's report.
The report further shows that local
telephone users made 74,635, 900 calls In
the first four months of 1888, compared
with 79,366,000 in the corresponding
-four months year ago.
Further Business Gain Forecast.
The American Bankers Association
journal, in its latest summary OF the
business situation, says:
THAT seasonal influences have been
the core of the recovery since the mid
die of April is undeniable, but that the
element of possible, or even probable,
imitation turned the latter into an
abrupt, rather than gradual, rise,
seems at least equally obvious. In other
words. so far as the speculative mar
kets are concerned, the heavy purchases
of securities and commodities have been
the result of three different market at
titudes. Part of the buying has been
for the account of persons who believe
that we were on the verge OF a definite
and prolonged business recovery which
justified substantially higher prices.
Part has been for the account OF those
elements in the speculative community
who have long sought, and who believe
in the efficacy Of. some form OF IN
f1ation.
"And finally, part has been for the
account Of persons who do not neces-
sarily look for corporate earnings IN the
near future to justify the current level
of security prices and who do not en-
brace imitation as form of relief, but
who feel that the present monetary
program Of the administration empha-
sizes the desirability of owning equities
regardless of earning power or any
other consideration"
These speculative factors have a
bearing on statistics of speculative and
business improvement which, the jour-
nal says, "all point In the same di-
xection of higher prices, and accelerate
ed pace of industrial activity, and a
continuance of that improvement In
the monetary and credit position which
had been in progress since March f."
d. C. Bank CIearings Improve.
There are indications that Washing
ton bank clearings are now pointing
definitely upward.
The monthly report of the Washing
ton Clearing House Association, made
public this noon. shows that local bank
cIearings totaled $40 ,453, ,198.40 in May.
compared with $38 8,960,517 in April and
iyH
the bank holiday so seriously tied up
check canceling for time.
Local bank clearings in May, 1882,
tetaled $8o,493, ,495.15. For the first
five months of this year Washington
banks had cleared $245 ,638, ,205.30 IN
checks, while Cancelled checks In the
same period last year amounted TO
S433, ,427, ,46328.
Washington bankers today expressed
the opinion that present upward trend
in clearings does not really reflect the
full improvement that Is now taking
place in business in the Capital. This
is because the tax on checks has re-
duced the total number being drawn
and the fact that 13 local banks are
operating on a greatly restricted basis.
For several months an unusually
large number Of local people have been
paying bills with cash. The gain in
clearings, however, is considered i'm
portant The weekly reports have
shown that clearings in many other
parts of the United States have also
improved so that other reports are cer-
tain to make encouraging reading.
Heard in Financial District.
George M. Ferris & Co., Inc, invest
ment firm in the Washington Building,
,9~ $1 o1inr1tc oyd
others showing the record of Admin
istered Fund, one of the investment
trusts. The circular presents some very
interesting comparisons, showing the
action of many prominent stocks over
a period from June 80, 1881, to April
20, 1888
An authoritative summary OF recently
enacted securities act Is being ar
ranged and published by the Interna-
tional Bank, John r. Waller, president,
under the title, Truth in Securities
Bill" As this law drastically affects
the activities of brokers, investment
houses and banks, as well as being of
interest to lawyers and accountants, the
digest of the new law will be of par
ticular value from legal, economic or
accounting viewpoint.
If initiation has played any part in
recent business improvement, 1t has
done so only by anticipation, states the
Guaranty Trust Co. in its monthly sur
vey of conditions 1t is not unreason-
able, therefore, to regard the current
expansion as the continuation or the
resumption Of an upward movement
that really began almost year ago, it
states
Richard K. Mellon of Pittsburgh has
requested authorization by the Inter
state Commerce Commission to serve as
a director of the Norfolk g. Western
and it's subsidiary and affiliated COM
panies. The applicant was elected to
the board in February but has not as
sumed any duties pending authorize
tion of the Interstate Commerce Com
mission.
Today's Trading on Exchange.
Bonds were in the best demand or
the Washington Stock Exchange today