Evening star., 1938-02-26
POTOMACP0WER
PROFITS DECLINE
Heavy Operating Expenses
Reduce January Net In
come to $465, 5,526.
By EDWARD C. STONE.

Net income OF the Potomac Eec.
tric Power Co. In January totaled
t465,526.06, compared with $5l2,-
1871 In January, 1887. q decrease Of
$47;741.85. or 9.21 per cent. accord
ing to the monthly report just filed
with the Public Utilities Commission.
A marked gain in operating revenues
was more than Offset by increases In
various operating expenses.
January operating revenues amount
ed to $l,364,868.02, an increase Of
$46,40644, or 3.52 per cent. At the
same time operating revenue deduc-
.tions called for s803, ,67709, which was
an increase of $7S,l52.S5, or 10.77 per
cent. This left q net income from
operations of $561, 1908, q drop of
-$3l, ,746.4l. or little over per cent.
. Various incorporating revenues were
lower than last year, leaving gross
income of 56l,35560, of $39,291 40.
Income deductions for bond and stock
interest and other purposes required
.395, 5,829.54, which was $7,950.36 high
er than last year.
1AACS OUt xT1HSlt 1IUNtSs
. Analysis Of the January report of
the Capital Transit Co. shows that
expenses. including extra heavy taxes,
made very severe inroads in the COM
pany's earnings. Despite an increase
of more than $25,00O in operating rev.
enues, the months net profits amount
ed to only $166.72.
N,@aro tiony Avy>areae ooNol 81, Aco7
S302.28, an increase Of $5,6248l. Taxes
required $75,545.20. an increase Of
&9,26096, which was an advance of
~ per cent, and depreciation took
'.$100,9036l, an increase of II per
cent. or slo.23o26 more than in jan
uary, 1887. In the tax item social
security costs figure heavily.
=, Back records show that the transit
company paid q total of s671 900 in
taxes in 1886 and $8l3,000 in 1887.
The January payment this year indi-
Gates that the annual rate for the
whole of 1888 will reach $948,000.
Such q severe and rapid rise in taxes
places heavy burden on the stock
moving possible resumption of divi-
dends still further into the future.
The increase in reserves for depre-
citation is another factor in delaying
dividends. In January alone the in
crease in operating expenses, taxes
and depreciation showed combined
advance of s25,l16.03.
J Net earnings of less than SITS for
January caused good deal of COM
ment in the financial district today.
It was pointed out that the month
had one more Sunday this year than
last, which makes difference in rev.
.enues of between $4,000 and $4,000
In addition to the higher operating
expense items, there was small drop
in incorporating income and deduc-
tions for interest on the funded debt
totaled $60,5s5.21. It was fortunate
the falling of in traffic was no larger,
otherwise the final figures would have
been in red ink.
B. h o. Revenues Decrease.
The Baltimore g. Ohio Railroad re-
ported today that net railway operat-
ing income in January totaled $780,
e01, q decrease Of $1,724,l48 from
January, 1887.
January freight revenues amounted
to $9,226,131, q decrease OF $2,994, ,0S5:
passenger revenues reached $970,520,
. gain Of $61.342. Mail and other
operating revenues were higher, but
express revenues fell of.
Operating expenses were held under
last year, but not nearly enough to
offset the drop in revenues. Railway
operating expenses totaled $9,298,575
against $l0,273,644 a year ago, q de-
crease of more than $975, 900, the re-
port said
VIII Open Advertising Agency.
Isador Cohen, advertising and sales
promotion manager for Raleigh Hab-
erdasher for the last seven years, an
nounces the opening of his own
agency Monday
Entering the advertising field in
1913 under Joseph Katz of Baltimore,
he has since served in the capacity of
advertising director for the Hecht
stores in Baltimore, the Hill Co. of
Philadelphia and the Sanger Bros.
stores OF Dallas, Tex. For three years
prior to his position with the Raleigh
Haberdasher he was in charge of CODY
Tor E. B. Powell, sales promoters OF
Chicago.
Mr. Cohen attended City College
OF Baltimore and later studied adyer-
Using and merchandising at Wharton
School. His Offices will be located In
the Metropolitan Bank Building.
Banquet Plans Completed.
Fred A. Smith, chairman of the
entertainment Committee for the
elentn annual dinner of the District
Building and Loan League, which will
be held at the Maynower Hotel Sat-
urday evening, March S, has an
nounced that arrangements for the
entertainment Of the guests are COM
plete.
A prominent orchestra will furnish
music during the dinner, as we'll AZ
Tor the revue numbers and the dane
ing. which will follow. George H
OConnor, in addition to acting as
master Of ceremonies, will sing A
number Of his famous songs.
Other members of the Entertain
ment Committee include Carl j. Berg
mann, Edward K. Jones, Robert E.
Buckley, Odell Smith, Martin A. Cook.
J. Hawley Smith and c. Hayward
Marshall.
Heard In Financial District,
The automatic depository idea has
spread rapidly in Washington until
many OF the leading banks now
make 1t possible for their patrons
to make their deposits through q
slide, receive credit for the amounts
the next day and avoid standing In
line during the rush on Government
pay days.
Several banks report quite eener-