Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-05-24
PEPCO EARNINGS
y BELOW YEAR AGO
$321,567 in April Compared
With $324,242 for Same
1884 Month.
BY EDWARD C. STONE.


Net earnings of the Potomac Elec-
trio Power Co. totaled 1921 ,56733 in
April, against $334,24214 in April
last year, a decrease of $12,674.81, ac-
cording to the monthly financial
statement filed today with the Public
Utilities Commission.
Operating revenues amounted to
t1,091. 1864, as compared with $685.
35315 year ago, jump of $780,
1850. Revenue deductions, how
ever. called for 689,48377. in COM
parison with $576, 564.56 in April 1884,
an increase of s112,91921. which
more than offset the gain in oper-
ating revenues.
Net operating revenues amounted
to s402 .253.07, compared with S408,-
1889. or a decrease of S6.538.52. De-
auctions from gross called for s92,-
993. 76, against sS6,l57.l7, or $6,836,5O
more than last year. leaving the
aforementioned slightly lower net for
the month.
The Potomac Power Co. also filed
reports for the first four months OF
1895 with the commission, showing
operating revenues of S4,430,ll4.22,
compared with S4052, 520.49, an in
crease of S377 ,593.73. Revenue de-
auctions required S2,713.161.75. an
increase of 1891 ,585 90. leaving a to-
tai net operating income of Sits
s52.47, which was $13,992.23 lower
than last year.
Miscellaneous income was of
S3,75602 and gross was $l7,748.25
under last years figure. Deductions
from gross took 1911, 1885, an in
crease of s27,l0O.13. leaving net in
come for the period of 81 1886 ,588 ",
against slab, 1850, of s44,S4S.38
for the four months.
The slump is largely due to in
creased operating expenses. Labor
costs are higher than year ago, fuel
is up, taxes are heavier as income has
expanded, and there is an extra large
amount of maintenance work being
done about the city. One Of the i'm
portant items of expense is the cost
of changing from alternating to di-
rect current to make this standard,
a step being taken in practically all
the other cities in the country.
Morgenthau's Views Scored.
President R. S. Hecht of the Amer
lean Bankers Association severely at
tackled the views of Secretary Nor
eenthau on the central bank issue, in
an address before the Georgia Bankers
Association, according to dispatches
...;,,.l t,ara oCoorot ny M0rpopt hairs
statement before the subcommittee OF
the Senate Committee on Banking and
Currency. to the effect that he would
favor the conversion Of the present
independent Federal Reserve System
into a Government and con-
trolled central bank. came as distinct
shock to the banking and business
interests of the country" President
Hecht declared.
There is virtually unanimous
agreement among bankers that our
present regional system Of private
ownership is infinitely better for the
country than would be Government
owned and controlled central bank. II
history teaches us anything it is almost
certain that a central bank so owned
would be run to meet the varying
exigencies of the Government in power
rather than to serve the commercial
interests of the country" the A. B. A.
chief added.
History has proven that any bank
ing system entirely owned and domi-
mated by the Government usually
demonstrates much greater ability in
aiding expansion of credit than in
putting on the brakes at the right time
to prevent undue imitation by restrain
ing and contracting credit"