Evening star., 1936-06-29
EARNINGS REFLECT
BUSINESS UPTURN
Utility Reports Reveal Prog
ress Here During Past
Five Months.
BY EDWARD c. STONE

poratlonS, as compared WIN the nrSt
five months of 1885.
The Potomac Electric Power Co. has
Just reported to the Public Utilities
Commission net earnings in the five
months amounting to S1,863, ,644.07,
which compares with net income of
Sl,698,047.89, an increase of 975 per
cent. Net in May alone was up 1915
per cent.
The Chesapeake & Potomac Tele-
phone Co. reported to the COM
mission that net earnings in the five
months in 1886 reached the sum of
S9l5,956. against S819,223 in the like
period in 1885. an increase of S86,733.
The telephone company had an
operating income of s4 440, 1888, against
s4175,355 in the corresponding five
months in 1885. Operating expenses,
however. were slightly higher than
year ago so that all the gain was not
reflected in the final profits. The
good showing was partly due to a net
gain in telephones Of 4630 and total
CT l16,376,00 calls, against l07,3l9,-
900 year ago.
The Washington Gas Light Co. re-
ported a net income of 1922 735 in the
same five months over last year.
While $4,000 lower than year ago,
the company had to meet an increase
in expenses of more than S280,000.
The substantial net income, in spite
of growing expenses reflects excellent
business conditions in the Capital.
The Georgetown Gas Light Co.
reported a modest increase in net
earnings over the 1885 figures,
backing up the business uptrend in
dications from other sources. The net
profits of the Washington Rapid
Transit Co. during the same period
were also favorable, being better
than year ago.
The Capital Transit Co.'S deficit
of over $4,000 in net earnings IN
the five months would hardly indi-
cate general business progress here
until it is explained that the mount
ing cost of operations brought earn
ingS down from net income of more
than 1882 900 in the same period
year ago.
A gain of 7,95O.904 in the number
OF revenue passengers carried on
street cars and buses. over the 1885
total. adds definite evidence of the
speeding up in business conditions in
the Capital.
Higher Dividends Forecast.
In an analysis of the revenue act
Of 1896, United Business Service in its
current report states that one OF the
most important effects of this legiSla-
ton will be the inauguration of more
liberal dividend policies Companies
must either distribute substantially all
of their earnings or pay higher taxes
to the Federal Treasury. The Service
are likely to increase, resume or in
itiate dividend payments.
Besides bringing about larger dlvi-
dends on common stocks, it is eX-
pected that the new tax bill will speed
the payment of arrearages on cumula-
tive preferred stocks and the reSump-
ton of dividends on non-cumulative
preferredS. The new law will probably
increase investment interest in high
grade equities because Of the prospect
of larger disbursements.
Among the other effects of this leg
islation will be the simplification of
many holding company structures be-
cause Of the tax on intercorporate div
idends, and an increase in new capital
issues and bank borrowings which will
result from the policy of more liberal
dividend payments. today's forecast
says
Sales Gain Fastest in East.
Daily average sales in small towns
and rural areas for May showed a
larger increase in the East than in
other parts of the country as COM
pared with May, 1885. Estimates of
the Bureau of Foreign and Domestic
Commerce, based on dollar value of
rural chain store and mail-order sales
indicate that sales in the East were
about 26 per cent above May of last
year as compared with an increase
of about 81 per cent for the country
as a whole The lowest increase, 19
West
Sales for the first five months of
1896, as compared with the corre-
spending period of the previous year
were highest in the Far West, where
a 19 per cent gain was recorded, and
lowest in the Middle West, which
showed an increase of per cent.
Ioa
try as whole, an increase of 10 per
cent was shown.
Sales in the East include those made
in territory lying east of the Ohio
River and north of the Virginia North
Carolina line; in the South those
made in States south of the Ohio
River. east of the Mississippi and
Arkansas, Louisiana and Texas.
Financial District Gossip.
Charles Carroll Morgan. manager of
the Washington Office of c. Mp
Murphy g. Co., has trip to Europe
on his vacation schedule He will go
over on the Europa and back on the
Queen Mary in order to have as much
time as possible in crossing.
the District Underwriters Association,
Is proudly showing the gold wrist
watch presented him at the final meet
ing of the year. An inscription lauds
his service to the association during
the past IL months.
The Virginia Railway reports $467
Der share earned on common stock in
the first five months of 1886, compared
with $2.14 per share III the correspond
ing five months in 1885,. one of the
best gains reported by any of the i'm
portant railroads.
Col. Leonard P Ayres says the pres
ent outlook is for continued low rates
of bank interest over long period,
"even with continued business recov-
cry. good progress toward budget bal
sncing, and the refunding of most of
the short-term Federal debt.
Washington Market Active.