Evening star., 1936-09-01
c. & ?. PHONE NET
BELOW YEAR AGO
July Earnings Register
Slight Decline From
Same 1885 Month.
BY EDWARD c. STONE.

Net earnings OF the chesapeake q
Potomac Telephone Co. in July were
slightly lower than in July a year ago.
according to the monthly report just
filed with the Public Utilities Commis-
sion, the balance before dividends
standing at $138,546 in comparison
with S145,219 in the like period a
year ago.
Operating revenues totaled $871 ,847,
against $82,993, but the gain was
largely offset by heavier operating ex-
penses, $634,770 as compared with
$6O0.804, leaving a net operating in
come of S153, ,796 in July of this year
in comparison with $169,958 in July,
1885. Operating taxes called for STA
281, against $57,232 year ago. In
terest deductions were smaller, $15,985
comparing with $25,291.
Washington was served by 206,37l
telephones on July 81, 1886, net gain
of 181 telephones over the previous
month. On July 81, 1885, there were
l95, ,533 telephones in service. Tele-
phone users in Washington made "a
$4,000 calls in July, as compared
with &c, ,933 900 during the same month
in 1885.
Operating revenues for the first
seven months of 1896 were also re-
ported to the commission. Operat-
ing revenues totaled $6,203, ,924, against
$5,867,24 Operating expenses to-
tailed s4,367,512, compared with s4.-
1O7,422. After all deductions net
revenues before dividends amounted
to S1,2l4,530, as compared with ST.
l24,147 in the first seven months of
1886.
Bank Loans on Increase.
Commercial lending by banks shows
0 marked upward tendency and the
outlook, judged by this important in
dex, is more promising, declares Bank
ing, organ of the American Bankers
Association in the September review,
out today. Industrial and CONNER
cial loans are considerably above the
levels of a year ago, the summary
adds, and there is every indication
they will expand as more extensive
business commitments are undertaken
in the Fall Borrowers seem to be
using commercial paper more freely
IN their financing.
Fall trade prospects are bright and
the prevailing attitude in most quar-
ters is hopeful. A great many per-
sons are beginning to ask if recovery
thus far in the United States has been
genuine or an illusion. But whatever
doubts may be felt on that score have
not interfered much with industry's
preparations for more recovery, and
irrepressible optimism proceeds hand
in hand with very serious economic
problems.
Business Near Boom Stage.
Superficially. at least, business is
almost in a boom. A year ago the
question was whether an upturn would
occur this Fall or not, whereas the
only question now is how far the rise
will go.
Consumer demand continues un-
abated, retail and wholesale trade are
running far above last year, Summer
industrial activity exceeded expecta-
tions in practically every field, factory
employment and pay rolls are up, the
general activity in consumption goods
is having its effect On the heavy goods
industries-in short, the outlook, from
q statistical point of view. is distinctly
promising, the review asserts.
Thousands of individual farmers
will suffer as result of the shortage
of water, but Government aid will
keep their distress from becoming
acute. Farmers with crops to be dis
posed of will benefit from the rise in
prices of grains and live stock depend
ent on them and it now seems doubt
full if the net income of agriculture
will be seriously reduced.
Outside of the drought-Stricken !
area crops in general are good. Cot !
ton promises to reach production OF
12,500,0OO bales and prices are rela-
lively high without any manipulation
by the Government. The review |
adds:
Limit to Spending Forecast.
"The ultimate results of the drought, |
social unrest here and abroad, threats
of war in Europe and Asia, burden
some and strange forms of taxation,
politics, the rumbles of approaching |
labor troubles and more politics, are |
some Of the problems. Financial and |
business interests, however. can find |
even more fundamental things to be |
concerned about, particularly the
after effects of powerful stimulants
which have been injected into busi-
ness by the Government. The unbal-
anced budget is kind of skeleton in
~ IL ,f
are well aware that the outpouring of
public funds cannot continue. There
is q limit and great many individ-
uals believe it is already in sight"
Banks Launch Loan Drive.
First advertisements appeared in
the washington newspapers today
launching a special drive for loans
under the national housing act for
housing improvements and renova-
tions. The campaign, arranged by
the District Bankers Association in
cooperation with the Federal Hous-
ing Administration, is expected to re-
vive interest in home improvements
and result in a large number of loans
from the banks in the Capital.
All the banks in Washington are
ready and glad to make these loans
with one or two exceptions, where the
charters do hot permit loans Of this
type. When the housing improve
ment drive was first started the banks
here made an exceptionally large
number of loans under the federal
act. In fact, so many loans
were made and so much interest
shown that the Federal Housing Ad-
pointed to Washington
rs a model to be followed all over the
country. Other cities were stirred by
the results here to launch very sue
cessful campaigns of their own.
Chicago Office Opened Today.
The New York Stock Exchange
firm of Hemphill, Noyes & Co., which
has had q Washington Office for
years, opened an Office in Chicago to-
day, at the same time extending its
activities into the commodities field