Evening star., 1938-01-28
POTOMAC POWER
EARNINGS MOUNT
Net for 1887 $44O,667.9 SO
Above 1936-DeCember
Income Also Higher.
By EDWARD C. STONE.

dilAuAiSSu toudy llldl ileI lllCOIIle
for 1887 amounted to $4,886, 1888, a
gain of S440.66796 over 1886. Ac-
cording to the financial statement
filed with the Public Utilities Com
mission, operating expenses were
higher than in 1896. but operating
revenues also advanced even more.
Operating revenues totaled $14,-
725,380, an increase over 1886 OF
1881 .390.58, or 448 per cent. At
the same time operating expenses
called for s8,873, ,28O.6S, an increase
of S273 3,086.59 over the previous year,
or 3.l8 per cent, leaving net income
from operations of s5,852 ,09932, an
increase of s358.2O3. 80, or 6.52 per
cent.
Gross earnings amounted to S5,9l7,-
1862, gain of $285 838.6l, or So
per cent. The usual deductions for
interest and other purposes required
$l,030,362.86, which was lower than
the amount deducted in 1885 by $l54,-
829.36, leaving the above-stated nota-
BILE increase in the power concern S
total net income. While wages, fuel
and other costs we're heavier during
the year. there was a marked rise
in the years kilowatt hour sales.
The company also filed the Decem-
Der report today, which disclosed op-
Grating revenues of Sl,295 5060.38, up
S51997.33. or Alb per cent OPP
Grating expenses required ss42.s5O.78
An increase over December. 1896. of
s52.24399, o. 66l per cent. This
left net operating revenues of $452,-
209.6O, off s24666.
After inclusion of all other income
and deduction for bond interest and
dividends, the power company had
net income for December of $751;
88374, an increase of S27906.l4. or
6.6l per cent over December. 1896.
Savings Deposits Climb.
Thrift got big boost in 1887, when
depositors in the Nations mutual saw
ings banks added an aggregate sum OF
3,786,770 to their accounts during
the year, the National Association of
Mutual Savings Banks reported today.
Deposits on December 81 totaled S10.-
l26,38l,l52, against s10,0l2,5 1882 on
the same date in 1886
In number of accounts, which saw
ings bank officials consider the real
barometer of thrift. the total rose to
14,578.l86 from l4,39892O a year ago,
a gain of 1926 accounts. The aver
age of accounts was S69463, compared
to s69530 the year before.
All of the years totals were but
slightly below the highest figures of
mutual institutions. In the case of
combined surplus account the total
rose to new peak of sl,319.217,549
from sl,260,319,338 on December 81,
1885, an increase for the year of s58,-
8a8,2l1.
Assets of all mutual savings institu-
tions, operating in II States, at the
year end amounted to Sl1.500, ,624.304,
compared to s11,357,442,35l a year
ago, a gain of s143,181953.
Restricted investment opportunities
and low rate Of earnings continued to
affect the rate of dividends paid to de-
positors, which averaged from 2 to az
per cent.
Among the 100 largest mutual banks
in the United States are the Savings
Bank of Baltimore, with over $685.
100000 in deposits, and the Eutaw
Savings Bank, Baltimore, with $780,
034,885 in deposits.
Bank Loans Reveal Decline.
The Federal Reserve Boards jan
uary Bulletin states that the volume
Nf OF rororti,,n horS' ha MIC
In l0l leading cities declined sharply
In the five weeks ending January 19,
while their holdings of investments
showed little net change. Declines
occurred in loans to security brokers
and dealers and in commercial loans,
which decreased both in New York
City and in other leading cities.
Interbank balances were built up
during the period, while other deposits
decreased somewhat, rejecting largely
the repayment of bank loans, partly
offset by return flow Of currency
from circulation.
Excess reserves Of member banks
increased in the four weeks ending
January l9 from Sl,010,000000 to
Sl.370, 100000 and were larger than at
any time since May l. The post
holiday decline in money in circula-
ton, which accounted for this growth
Of excess reserves, was larger than
the increase that occurred before
Christmas
Outlook Held Much Better.
"The general business outlook Is
much improved, particularly in those
lines which will benefit from the ex-
penditures for national Defense" ac-
cording to the monthly survey of the
condition of business in the February
issue of the magazine Banking" Off
cial publication of the American Bank
ers Association.
The country's great need at pres
ent," it continues, "is an old-faShioned
era of good feeling between business.
labor and Government, founded on
real understanding. If the present
truce is temporary its benefits will
also be temporary. Nothing of per-
manent nature in the direction of
sound recovery will be accomplished
In an atmosphere of fault finding and
distrust."
The White House conferences,
bringing together representatives Of
the Government. industry, finance and
labor, gave flip to returning con-
hdence," the publication declares.
Today's Trading on Exchange.
The cold wave evidently hit trading
on the Washington Stock Exchange
today, the only activity being in Po-
tomac Electric Power per cent pre-
ferred stock at recent levels.
AS noted elsewhere in today's finan-
cial section of The Star, the Capital
Transit Co. filed the yearly report
with the Public Utilities Commission.
This showed an increase of $106,055 .03
in total net income over the previous
year.
The report also disclosed substan-
tial improvement in the. December
earnings under the new fare rates.
Transit stock was quiet on the ex-
change with 81 bid and 10 asked.