Evening star., 1937-06-26
PEPCO EARNINGS
IMPROVE FURTHER
May Net Up More Than 18
Per Cent Above Same
1886 Month.
BY EDWARD C. STONE.

BY EDWARD c. STONE.
Potomac Electric Powers May net
income revealed further substantial
gains, giving further evidence of stead
ly improving business conditions in
the Capital. Filed with the Public
Utilities Commission, the report for
May showed a net income of $412,-
3l8.4l, an increase of $62 1854 over
May. 1896, or more than Is per cent
May operating revenues totaled ST.
173,0l5.89, gain over the same month
last year of s42,42838, or 3.75 per
cent Operating expenses called for
$685., ,999.5l, reduction of S4,22l13,
and leaving net revenues from opera
tions of S487 70l6.38, an Improvement
over May, 1886, of SAC 6,649.5l, or 1859
per cent Deductions from gross to
meet interest payments required $82,-
1891.
The Potomac Electric Power Co
also reported earnings for the first
five months of the present year, show
ing total operating revenues of So
1l4,55l.76, gain OF S245,35 So, or
4l8 per cent. Operating expenses
amounted to $3.50, ,960O2, a small
reduction in these costs, and leaving
net operating revenues for the five
months at 563,59l74, notable gain
OF $245,77265, or 1850 per cent.
Other income deductions to meet
bond interest took S426,3 ,3648l, a de-
crease Of s72,44760 from the same
five months a year ago. at the same
time leaving net income of 81
l75,99487, an increase of S3l2,2 0.8O,
or 1876 per cent over 1886, the re-
port revealed.
Collections in d. c. Lag.
In . survey of retail trade in May
In % department stores in the fifth
Federal Reserve district, the Reserve
OF Richmond announced today that
collections in Washington stores were
1858 per cent of the bills due at the
beginning OF the month. This COM
pares with 28.8 per cent for the whole
district, 3l1 per cent for Baltimore
and 3l.7 per cent for a group of other
cities.
Stock turnover in Washington stores
In May was ahead of the rest of the
district, which was also true for the
flrst five months of 1887. Stocks on
hand in Washington department stores
at the end Of May were 148 larger
than year ago and lis per cent
higher in the whole district.
AS already noted, department store
sales in the Capital in May were
fraction Of l per cent lower than
year ago, but in the first five months
of 1887 were 312 per cent better than
IN the like 1886 period
Bankers Given Profit Advice.
Proper ratios between a banks cap
hal and deposits. safety Of principal in
buying bonds, and accurate cost sys-
tenn were described to Virginia and
West Virginia bankers at their White
Sulphur convention today as the
chief factors in profitable bank
management. Embert S. Woosley.
Louisville, KY, banker, according to
an Associated Press dispatch, said
that banks ask for 80 to SIS per cent
margin when customer borrows, but
that I'VE feel perfectly free to offer our
depositors margin of 10 per cent or
less"
He declared that every banker
should hold to the policy of increasing
capital funds to point where there
is cushion Of such size and strength
that all sorts OF jolts may be absorbed
without destroying the confidence of
the public. Safeguarding principal is
far more important than high interest
yields He continued:
The Kentucky banker mentioned in
stallment financing and personal loans
As profitable branch of banking, with
the use of good merchandising prin-
c1ples by selling small loans at a re-
tail price"
Other factors recommended for
profitable banking included a deter
mination of what the bank can afford
to pay for time deposits, high re-
qulrements in choice of personnel,
knowledge of facts about customers
and investments and a ready file of
those facts, and willingness to work
With other banks for the good OF the
whole.
The joint convention will close late
this afternoon, with each association
electlng officers, after an address by
Leo T. Crowley. chairman of the
Federal Deposit Insurance Corp.
Prosperity Aids Auto Club.
Registering an 80 per cent increase
IN new members for the last four
weeks, as compared with the gain
mace m the corresponding period of
1885. the Keystone Automobile Club
OF washington is said by its manager.
George E. Keneipp, to be heading for
. new record of expansion in 1897.
According to Keneipp the con-
tinued steadiness of general economic
conditions in this territory, combined
with an impressive advance in the
sale OF new and used motor cars. are
factors which are playing important
roles In Keystone's progress.
Inc local manager also said that
the club as whole, the largest in
the East. is pointing toward a mem
oershlp goal which will make it ,he
largest independent motoring organ
1aatlon in the United States, a posi-
ton now held by the Automobile Club
OF Southern California.
b. & o. May Earnings Drop.
Net railway operating revenue of the
Baltimore & Ohio r. R. in May totaled
s2255,52l. against s2,472 966 in Nav,
1885. decrease of s217,445, the cor
poration reported this noon.
Freight revenues totaled sl3,287174
over May 1886, a gain of $3.50 SIT
while passenger revenues showed
gain of more than $4,000. With the
exception of express returns, all other
operating revenues were higher than
last year. Operating expenses wiped out
the gains. however, with an increase
of 1921 ,683.
Net railway operating income for the
flrst five months of 1887 was well above