Evening star., 1933-07-09
Operating Income Passed
Year Ago for First Time
Since February, 1882.
A. T. &T. MAKES MONTHLY
STATEMENT TO |. C. C.
New Advertising Firm Organized
Here-Interest Grows in
Investment Circles.
BY EDWARD c. STONE.

Capital holders of American Tele-
hone G. Telegraph stock expressed keen
interest yesterday in the report just
fled with the Interstate Commerce
Commission, revealing pronounced i'm
provemept in the operation OF long
distance lines during May. The report
covering operating activities OF the
parent company only, mainly income
from long-distance lines and payments
from affiliated companies for services,
showed an operating income in excess
CT the corresponding month in 1882,
for the first time in any month since
February 1882.
The report fer May showed gross of
$7,444 ,988, in comparison with 1888, ,429
for the corresponding month year
ago Operating income, however, of
G95l.93l compared with S553,688. un-
douotedly reflects operating economies
5n effect. Gross revenues from opera
tions. as contained in the report of the
Interstate Commerce Commission. in the
full 1882 year constituted 35 per cent
of the total gross of American Tele-
phone & Telegraph Co., the balance
being derived largely from dividends
of affiliated operating companies and
interest.
June earnings from operations are
expected to compare favorably with the
May showing of earnings from this
source.
Earnings statement to stockholders
covering operations for the three
months to June 80 will be published
about July IS Earnings are not eX-
pected to show any great improvement
over the first quarter of the year. when
SLIP a share was shown en- the 1862,
275 shares outstanding. These figures
included dividends paid by affiliated
companies though not fully earned.
American Telephone stock has re-
Gently been extremely active on the
New York Stock Exchange. closing the
week yesterday at Sl32 a share.
New Advertising Firm Formed.
An announcement of interest in
financial circles is the organization of,
MCNally & Smytll, Inc. as a complete
advertising agency. With offices in The
Star Building. James J. McNally, pres
ident, for nearly four years was in
charge of advertising at the Potomac
Electric Power Co. and Washington
Railway & Electric Co. and since 1880
has been in advertising agency work
here
Dwight G. Smyth, secretary and
treasurer, has become we'll known in
financial circles since taking up resi-
dence in Washington two years ago.
He formerly was market analyst, con-
nected with Kissel-Kinnicutt & Co.;
Bauer, Pond & Vivian in New York, as
we'll as Fenner, Beane & Ungerlleder in
Washington, all members Of the New
York Stock Exchange He is a member
of the Columbia Country Club and re-
sides at the Westchester
Mr.. McNally for years was on the
board of directors of the Washington
Advertising Club and resides at Clar-
endon, Va.
Bank Aid Will Be Extended.
The plan of making cash available
to banks in Wisconsin holding farm
mortgages will be applied in other
. States. says the Farm Credit Admins
tration.
Wisconsin is being used as a testing
ground in determining to what extent
the Government can be of benefit to
both farmers and 6epositors in rural
hanks" the Farm Credit Administrator
explained With the experience in
Wisconsin serving as a guide, canvass
is being made in other States to find
out what the situation is at the present
time and what can be done to bring
relief where farm mortgages are held
by closed Or restricted banks"
Wisconsin was selected because laws
of that State permit the banking
department to write down both the
value of assets and deposit liabilities.
Henry Morgenthau. jr., governor of the
Farm Credit, has suggested that other
State Legislatures, seeing what can be
done in Wisconsin, might change their
laws to make the pan applicable.
Broker Offices Draw Throngs.
Washington Offices of New York
Stock Exchange houses were thronged
again yesterday as both investors and
traders followed one of the busiest
shcrt sessions of 1888. Fridays market
saw a turnover of nearly 100000
shares, the second largest session on
any day this year.
Trading yesterday passed the 3.0O0,-
CO0-share mark in the tWo-hOur SeS-
sion, which shows that the week closed
with another spectacular -monstratlon.
The volume figures alone tell the story
of how much interest is being mani
tested in the stock market, regardless
of the activity in such tremendous
range CT individual stocks. No wonder
loca, brokers are delighted with the
situation and are maintaining as large
Office forces as the business warrants
Washington bond dealers also are
more than cheerful these days. Inc
advance in bends has been most graft
fving. The bond demand has been very
heavy in this city. both Glass A senior
issues and the more speculative bones
being unusually popular, dealers state
Bonds were again in active demanc
~, tho WJostiDotoD Stork Exchange but