Evening star., 1937-07-30
EXPENSES REDUCE
PHONE EARNINGS
c. &P. Revenues Well Above
1886, but June Profits
Drop to $145,530.
BY EDWARD c. STONE.

BY EDWARD c. STONE.
While operating revenues Of the
Chesapeake & Potomac Telephone Co.
in June were substantially higher than
ayear ago, operating expenses recorded
sharp advance, leaving a net in
come of sl45,530 against $l60,028 in
June, 1885, according to the monthly
statement filed today with the Public
Utilities Commission.
Operating revenues totaled 1923 604
compared with 1891. 1888 year ago;
operating expenses required $691 1920
against $630,864 last year, leaving a
let operating income of sl60,169 in
comparison with sl72 ,68l. Taxes took
S77,1l5 against $88,203 a year ago.
Vet incorporating income was slightly
higher than last year. making gross
ncome of $l62,385 compared with
174,l47. Interest deductions called
or sl6,855 against sl4,l19 in June,
936.
Washington was served by 22o,028
telephones on June 80, net loss Of 10
)hones over the previous month. Tele-
hone users in the Capital made 26,-
N14,000 calls during the month COM
Dared with 234se,O0O during the
anne period last year.
The c. & P. company also reported
:, net income before dividends of ST.
l0.9l0 in the first six months of
927 as compared with Sl,075,984 a
ear ago. Operating revenue amount
d to s5,59o,395 this year and
;5,330076 last year. Operating to-
aled s3,sS0.77l against s3,723,44l in
he first half Of 1886.
Taxes required S496,472 as compared
18th $45l.l4S and left a net operating
ncone Of Sl,l13152 VS.. Sl,l57,187 last
ear. Incorporating income was over
10000 this year and only S49l4 a
ear ago. Total gross income amount
ID to sl.l23,553, while gross year ago
otaled Sl162,l0l. Interest deduc-
ions called for 2,643 against only
s86,ll7 in the same 1886 period.
There was a gain of 5826 tele-
phones installed against a gain of A.
500 year ago. Telephone calls in
The half year totaled ISL .49l 900 COM
(lared with the much lower figure of
l34,s65,o00 a year ago, the report
stated
Railway Earnings Mount.
The Virginian Railway reports for
he six months ended June 80 net
2arnings on the common stock Of S752
Der share against S525 common
share in the first six months of 1886.
Other nearby roads report substan-
tial, almost surprising gains.
The Atlantic Coast Line r. R. had
a net operating income in the first
half year of s3,899,445 against ST.
l70,622 In the like 1886 period.
The Seaboard Air Line reported net
operating income in the six months
Of $2,956,263 as compared with sl,l6l,-
o53 in the same 1885 months
The Southern Railways net operat-
Ing income for the six months amount
ed to S9,267,49S against s7,759,243 in
the first half Of 1886.
Norfolk and Western reported a net
pPCl GULLY lIlISHiC VI Slu,tf1,L III
the half year as compared with S15,-
l56,148 q year ago.
The Norfolk Southern R. r. also
noted big increase, net operating in
come amounting to S33O.632 this year
against sl55,966 in 1886.
Building Gains During June.
Reporting for June and the first
three weeks of July, the Federal Re-
serve Board states that the value of
construction contracts increased con-
siderably in June.
The general level of commodity
prices, which had declined from the
beginning of April, began to advance
after the middle OF June.
Commercial loans Of member banks
continued to increase during the five
weeks ending July 81. Demand de-
poeits declined.
Leans to brokers and dealers in Sc
curities, which increased in June, de-
clined during the first three weeks of
July, the report said
Banks Continue Housing Loans.
The majority of Washington banks
are continuing to make modernization
loans, although title I Of the national
housing act has expired, it is stated in
the financial district.
The Federal Housing Administration
reports that banks all over the country
hoNho oHny1faS fhc ~
$500 banks we're participating in this
policy through the modernization
credit plan up to April l, when the in
surance authorization expired
The amount of money loaned in this
way by Washington banks has had
much to do with helping business re-
covery. The loans have also helped
the banks expend their own income
For these and other reasons there
seems to be no reason why such loans
will not be made indefinitely, bankers
say.
Junior Bankers Draft Program
The new Board Of Governors of
washington Chapter, American Insti-
tute OF Banking. meeting at the
American Security & Trust Co., form
ulated plans for the coming chapter
year. This was the first meeting
Of the new administration, headed
by William H. Laughlin of the Wash
1ngton Loan & Trust Co. An enthused
group OF junior bankers discussed
projects for the educational and So
clal program for 1878
Paul ]. Seltzer, new Educational
Committee chairman, stressed the
Importance of professional education
in the banking field, and methods
OF increasing the educational value
OF the chapter were approved.
Today's Trading on Exchange.
A small lot of Lanston Monotvpe
selling at 86, opened trading on the
Washington Stock Exchange today
Mergenthaler Linotype also appeared
on the board, two l0-share lots mov-
ing at 431a. The final sale as in Po-
tomac Electric Power 5l2 per cent
preferred at III.