Evening star., 1934-11-02
NORTH AMERICAN
EXPENSES MOUNT
Costs and Taxes for Year
Up 6.32 Per Cent as
Gross Rises ga.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK. November 2-The in
terim consolidated income statement
Of the North American Co. and sub
sidiary companies, including the Po-
tomac Electric Power Co., shows that
gross earnings for the IL months
ended September 80. 1884, amounted
to $lO2 1925. 300. an increase of $685.
6lo, or 0.64 per cent, compared with
the IL months ended September 80.
1888. Operating expenses, mainte-
nance and taxes amounted to ST.
434,688, an increase of $3,413, $50, or
6.32 per cent.
These figures do not reflect the true
trend of revenues and expenses of
present subsidiaries inasmuch as the
results Of operations of the trans
portation properties of Washington
Railway & Electric Co. are not in
cluded for the 10 months since De-
cember !, 1888, the date of transfer
to Capital Transit 90. Eliminating
the results Of operations of these prop
critics for the full IL months for each
year. the gross earnings of present
subsidiaries increased approximately
$4,325,0 900, or AZ per cent, and oper-
ating expenses, maintenance and
taxes increased nearly Sc 200 900, or
12A per cent.
Higher Costs Cited.
Revenues were affected because of
rate reductions made during 1888 and
1884 and, although the subsidiaries
sold more electricity, they received a
lower average revenue per kilowatt
hour, particularly for electricity sold
for residential use. These rate re-
ductions resulted in estimated savings
by customers Of approximately $4,-
1850 during the past IL months.
The greater volume of business would
normally result in higher operating
expenses, but there was an additional
increase because of higher costs Of
labor. fuel and other materials.
The consolidated statement shows
So, ,709,5 for common stock for the
IL months after all operating ex-
penses, interest charges, depreciation
and all other reserves and preferred
dividends. These earnings for COM
mon stock compare with $8,893 ,015
for the IL months ended June 80,
1884, and $1l,ll0,784 for the IL
months ended September 80, 1888.
On the basis Of the average number
Of shares of North American common
stock outstanding during the respec-
tive periods. earnings equal 81 .04 per
share for the II months ended Sep
tember 80, 1884, compared with sl.08
for the June 80, 1884, period and Slab
for the September 80, 1888, period.
Electric Output Gains.
The total electric output of SUBJ
sidiaries for the IL months was 4,810,-
924,6l0 kilowatt hours, an increase of
$40 per cent, compared with the II
months ended September 80, 1888.
For the third quarter of 1884 there
was an increase of 1.54 per cent,
compared with the third quarter of
1893.
There was a continuation during
the third quarter Of the increase in
the number of electric customers. On
September 80, 1884, there was total
of l,097 ,254 customers in all classi-
fcations. Residential customers num-
bered 955,163, rejecting increases of
8,627 during the third quarter and
24.803 since the first of the year
The average price paid for electric
ity by residential customers of North
American subsidiaries during the l2-
month period was 3.91 cents per kilo-
watt hour, compared with 4.30 cents
per kilowatt hour for the correspond
ing period a year earlier.