Evening star., 1942-08-27
Pepco Calls for Bids
On S5,0O0,000 Bonds
For Expansion
Financing Proposals
To Be Opened in New
York on Monday
BY HAROLD b. ROGERS.


The Potomac Electric Power
Co. today advertised for proposals
for the purchase of s5,0o0,0o0 first
mortgage bonds ga series due
August l, 1877, to be opened in New
York at noon Monday August 81.
Proceeds are to be used primarily
to increase the company's generat-
ing capacity and for additions to
plant and equipment. The expan-
sion is not only due to the war
needs of the Capital but to the nor
NAL growth of the system, which
has been gradual and consistent
over years. company officials said.
The invitation for bids followed
an order by the Securities and Ex-
change Commission In Philadelphia
yesterday approving the application
to sell the issue. The commission
reserved jurisdiction in regard to
the sale price and spread of distri-
button. Another condition was that
the company should notify the COM
mission 30 days before 1t declares
any dividend on its common stock.
Waiting Period Cut.
The commission acceded to the
request of the company to shorten
the To-day period usually required
between invitation for bids and en-
tering into contract to four days
so that the bids may be opened on
Monday.
The company announced that Of
ficers ard representatives of the
company, counsel for the company.
counsel for the prospective pur-
chasers of the bonds and repre-
sentatives of the auditors for the
company will be available at its
board room, 900 E street NV, to-
morrow at pm. for the purpose OF
reviewing the information contained
in the registration statement and
prospectus and the company's invi-
tation for bids. An opportunity to
inspect the properties will be af-
forded prospective bidders tomor-
row morning.
The company stated that pro-
| ceeds from the proposed sale will be
adequate only to complete the 1912
construction program. The COM
pany states further that its con-
struction program for 1943 may re-
quire the issuing of additional capi-.
tai stock or incurring further in
debtedness.
The proposed bonds will be re-
deemed at the option of the COM
pany in whole or in part by lot, on
any date prior to maturity at the
applicable redemption price on such
day with accrued interest.
Some Washington investment
houses are expected to participate
IN the issue.
War Bond Sales Rise.
War savings bonds of series E. F.
and G sold through 81 Washington
banks for the period from January
to August % amounted to s34,624,- :
8l0.95, at issue price. according to
figures compiled by Eldridge Ken
drick, acting secretary of the Dis
trict of Columbia Bankers Associa-
ton. This is an average of more
than million dollars a week for
the 32-week period.
Sales rose from $3.50 .908 rs for the
week from August to August Is
to s958,975.25 for the week from
August Is to August %, it was
| shown.
Increased activity in sale of bonds
Is expected next month as the banks
cooperate with the motion picture
industry, as announced yesterday, in
hopes of reaching the total of a
billion in bonds during the month
of September.
All banks here are participating
In the drive for selling bonds, as
are the building and loan and saw
lngs and loan institutions. Many
have specially assigned booths,
patriotically decorated, and have
allocated personnel to give their
full time to the sale of bonds.
Discussing the bond sale move
ment this morning, one prominent
bank president remarked that the
person who doesn't buy bonds now
reminds him of the person who
gets hungry in the winter, but in
the spring doesn't plant potatoes. :"
Pennsy Incomes Up.
Net railway operating income Of
the Pennsylvania Railroad increased
by S5,l54,978 in July, 1912, over July.
1871, TO total of S14,927,241. The
cumulative increase for the first
seven months of this year over last
was 1901 ,e45, bringing the net oper-
ating income for the period this
year up to s59,753,518.
Transit Dividend Voted.
directors of Capital Transit Co.
at their monthly meeting today de-
clared dividend of 80 cents a share
on the 100000 shares of capital
stock OF the company, payable Oc-
tober l to stockholders of record at
the close of business September Is.
The dividend amounts to $4,000.
This was the same amount de-
clared during the first and second
quarters. Last year Capital Transit
distributed four dividends of IS cents
each and one extra of Is cents, for
total of 81 .25 for the year.
Ralph j. Saffell, executive secre-
tary OF the Washington Stock Ex-
change for the last 80 years, is on