Evening star., 1941-07-01
D. {. Bank Deposits
Believed Highest
Ever Recorded
Peak of Last April
Has Been Exceeded,
Survey Indicates
BY EDWARD c. STONE.

vances deposits in the banks here
on April 4 of this year, the date
of the last call, aggregated S436,-
950.051.34. which was an all-time
peak in the city's banking history
An unofficial survey among linn
tied number of bank officials today
indicated that deposits are now con-
siderably above the S436000,000
mark of last April. At that time
deposits had gained more than
65,000,000 in the previous IL
months.
It is customary for the control
Ter of the currency to issue a call
for the condition of all Washington
banks at about this time. If Gus
tom is followed this year the amount
of money now on deposit will be
reported by each individual bank.
The figures always prove intensely
interesting.
w. r. & f. Reports Income.
The Washington Railway e. Elec-
tric Co. has Just issued a financial
statement covering the II months
ended May 81, l94l, which shows
a total income of S3.712.61389 OF
this amount S3,540OO0 came from
the Potomac Electric Power Co. and
S150000 from the Capital Transit
Co. The remainder came from the
Washington e. Rockville Railroad
and other sources.
Deductions included general eX-
benses, S75 300; taxes, other than
income taxes, S35 ,29l; provision for
Federal income taxes. S145 083; in
terest on funded debt, S125 ,558;
amortization of discount and eX-
pense on funded debt. S3,569; other
interest charges, ST 200, making to-
tai deductions of 1885, 600333.
These deductions left a total net
income of S3326 610.56. Preferred
dividends called for S42500O, leav-
ing a balance for common dividends
and surplus amounting to S2901,-
61O.56.
Pepcos Income Works Higher.
The Potomac Electric Power Co.
reports to the Public Utilities Com
mission that in the first five months
Of this year net income totaled
s1,815 ,560.88, against s1,753,5 ,581.o7 in
the like period year ago.
From this sum was deducted
s164,59749 for the payment of pre-
ferred dividends, leaving balance
for common dividends and surplus
of S1.650e63 80. in comparison with
S1.588 983.18 in the first five months
of 1910.
Operating revenues in the first five
months of this year totaled S7.483,-
986ll, against the lower figure Of
s6,9O5 1881 last year in the same
months.
Total operating expenses, taxes
and depreciation called for S5225.-
73767. as compared with the lower
sum of s4,850,55398 in the like 1910
period, leaving net operating in
come of S2258,24844, against ST.
065 ,225.53 year ago.
4Total interest charges amounted
to S467, ,37453 this year, against
s303 ,59127 last year, the report says.
Vital Tax Ruling Announced.
d. J. Needham, general counsel OF
the American Bankers Association,
announces that directors Of bank,
performing services as members of
a committee, whom the Bureau of
Internal Revenue had held to be
employees under the Social Security
Act, will not be required to file re-
turns other than for the present
calendar year.
The announcement follows re-
ceipt of a letter from Internal
Revenue Commissioner Guy T. Hell
vering and sets at rest fears of
many small banks that they might
have to file returns for a much
longer period. No taxes prior to
January l of this year will now be
involved. Mr.. Needham suggests
payment of the tax from January
] without further question.
Air Transport Status Analyzed.
Merrill Lynch, E. A. Pierce &
CaSsatt were distributing an analy-
SIS of the air transport industry in
the financial district today which
predicts a great period of growth
in the next 10 years.
Despite the fact that air travel
expanded nine-fold in the last
decade-and air transport COM
panies as a group operated profit
ably for the first time in 1939-the
future potentialities of the trans
portation are tremendous, and thus
far the surface has hardly been
scratched, according to the study.
Dislocation resulting from the de-
fense program and higher operat-
Ing costs are making it currently
difficult for the domestic air lines
to translate substantial revenue
gains into commensurate earnings
improvement, notes this study. Con-
clusion of the war will undoubtedly
prove a decided boon to the air
transport companies
Federal Housing Act Extended.
Signing of the bill extending the
Federal Housing Act for two more
years means that all phases of the
present program under Title l and
Title II will be continued, accord
ing to Administrator Abner H. Fer
guson. This bill was of great in
terest to the banks and the build
ing and loan associations.
The maximum outstanding in
surance liability under Title | is
increased from s10O,0OO,OOO to $685.
1000. The maximum amount of
Title I loans for modernization of
residential structures for two or
more families is raised from $500
to $4,000 and the maximum term
for loans above $500 is extended
from the former three years to five
years. The maximum amount of a
Title I loan for construction of a
new dwelling is raised from 81 500
to $4,000.
The authority of the administrator
under Title II to insure mortgages
on existing homes is extended for
three years to July l, 1914, with a
limitation of 35 per cent, against
the former 25 per cent maximum
amount of insurance on existing
homes.
Today's Trading on Exchange.
t11 90 -, ~