Evening star., 1936-04-28
EARNINGS MOUNT
IN FIRST QUARTER
All But One of Utility Con-
Germs in District Make
Good Gains.
BY EDWARD C. STONE.


now available, reveal very substantial
progress over the like period IN 1889.
Net earnings of the Potomac Electric
Power Co. in the first three months
Of this wear totaled s1,185 ,97799
gain of S12O,597.10, or 11.36 per cent,
over the 1885 total.
First-uuarter earnings OF the wash
ington Rapid Transit Co., which oper-
stes the Sixteenth street buSSeS ana
for which the Capital Transit co. is
now making such very generous
offer, totaled $40, ,695 80. against s4,-
1881 last year, an Improvement OF
S6,376.49.
The Washington Gas Light Co. has
reported a net income of $474,S35 IN
the past three months, compared with
S458 6O6, or an advance of $l6,229 IN
the neriod under review over the 1888
figures.
Net earnings of the Georgetown Gas
Light Co. reveal the same upward
trend, profits reaching s32,944 in 1886
and only s13,352 in the first three
months of 1885.
The Chesapeake & Potomac Tele-
phone Co. reports notable gains IN
earnings in the same period, also In
the number of new phones in serv-
ice. The Capital Transit Co., however,
is the exception that proves the rule,
a. il presents a sharp contrast to the
net income trends OF the other con-
Germs.
In the first quarter of 1896 Capital
Transit reported deficit OF SS4 ,o2Z.So'
against an increase in net earnings IN
1e35 amounting to sl62 2,8l5.2l, making
the total drop in earnings reach s247,-
477.5e, and this in spite of a gain IN
the number of revenue passengers car
ried of u per cent, or 4,359, 100. Ihe
March report alone was far oetter
than February, as it showed a. loss
Of only S5,614o0.
A. B. A. Studies Interest.
An Associated Press dispatch today
from Hot Springs, Va, stated that the
Executive Council of the American
Bankers' Association took up list OF
% committee and commission reports
on banking problems this forenoon.
Chief among them was the proo-
able" duration Of the present lhter-
est rate. under study by the Economic
Policy Commission.
Yesterday the bankers considered
postal savings and Government COM
petition in the banking field.
Leonard P. Ayres of Cleveland Will
sneak tonight on Imitation and Prob
lens of Bank Management During
Imitation"
Markets Followed Closely.
Attendance in the local offices OF
New York Stock Exchange houses to-
dav indicated unusual interest In the
immediate action of all the big mar
kets. Brokers in Washington do not
look for any long downward turn.
Stocks have already had substantial
setback and may go lower, but the
business indices and the outlook are
held to be too bright for any EXTENDED
'bear market"
The French situation is likely to
cause more or less further selling, but
brokers in the Capital say there are
not enough American securities held
in France to force domestic securities
down indefinitely. Stocks can't go up
constantly. Even with business ad-
vancing, the biggest traders don't buy
all the time. They must sell at some
point in an advance. With an ad-
vance lasting more than year, some
of the present selling in Wall Street
and elsewhere has been expected and
predicted for several weeks.
Many brokers in the financial dis
trict think the stock market became
"over- bought" and that caused the
selling as much, or more. than the
foreign situation. Every trader and
every broker has his own ideas, some
gloomy. but the majority cheerful for
the long pull
Regulation "U" Modified.
Answering a request from New
York banks for a clearer interpreta-
ticn of Regulation "U,' the govern
ors of the Federal Reserve System
have issued ruling as follows:
"A bank may accept the transfer
of a loan from another lender. pro-
vided the loan is not increased ano
the collateral for the loan is not
changed, even though the maximum
loan value of the collateral be less
than the amount of the loan, but
may not thereafter permit at any
time Withdrawals or substitutions of
collateral that would increase the
deficiency at such time"
Regulation ~" is receiving Nation
wide attention just now. Only last
week a special committee was ap-
pointed from the membership of the
District Bankers Association to give
it special study. This committee at
once arranged a conference with the
Federal Reserve Board on the col
lateral loan issue.
Today's Trading on Exchange.
Potomac Electric Power 6 per cent
preferred opened the Washington ex-
change trading today, selling at ITO.
Washington Railway & Electric pre-
ferred came out at Ill.
City g. Suburban SIS recorded a
$1,000 transfer at "a and 81 900 WASH
ington Gas IS, series B, moved at 1929
Business was considerably lighter than
usual, partly on account of the un-
B6LIl6Q SlIudtlOIl Ill Gllc NCW 1OL n
Stock Market.
Federal Reserve banks hereafter will
sell savings bonds as we'll as the post
Offices, Secretary Morgenthau an
nounced He also explained that in
vestors, including trustees and guard
lans, who last year purchased $4,000
worth Of the bonds, the legal maximum
for one year. are now eligible to pur-
chase an equal amount in 1886.
Controllers Plans Approved.
The House Banking and Currency
Committee has reported favorably on
the legislation making technical
changes in the banking law as advo-
Gated by the controller of the cur
rency. Among other things, the leg
islation would allow banks to pay
dividends at any time during the year.