Evening star., 1942-07-06
Higher Expenses Cut
D. {. Utility Nets
In Five Months
Three Companies Fail
To Equal Earnings
Reported in 1o4l
Bv EDWARD c. STONE.

By EDWARD c. STONE.
In the first five months of this
wear three of Washington's four big
utility corporations registered lower
net earnings than in the like 194l
period. according to reports filed
with the Public Utilities Commits
sion. Capital Transit was the ex-
ception. The lower earnings were
due to constantly increasing oper-
ating costs, including steadily
mounting taxes.
The Capital Transit Co.'S net
income reached $645, ,908.78,
lump of $118, 1902 over last year.
or 22.4 per cent. While the new tax
bill may not require such large
sum, the company set aside 81, ,499,-
624 in the five months for taxes,
l27 per cent more than last year.
Vital to the increase in net earnings
was an increase of 38,797,703 or As
per cent, in the number OF revenue
passengers carried.
Power Earnings Largest.
8 The Potomac Electric Power Co.
reported the largest net OF any OF
the companies, S1,813,131.44, COM
nared with Sl,815, ,56088 a year ago,
a tinv drop of S2,429.44. The COM
pany made provision tor taxes on
the basis of the 1941 Revenue Act. II
rates now being discussed in con
cress are adopted this figure Will
have to be materially Increased.
The Chesapeake & Potomac Tele-
phone Co. reported net income Tor
the five months of $560,7l2, against
the higher figure last year OF S744'-
5s5. Operating expenses showed
marked increase. The company
however. was sWamped with ousl-
ness, operating revenues belng up
nearly 100000.
Washington Gas Light net totaleo
ss75g gl8 against S1.060,372 last year,
a decrease of sl84454. A fine oper-
ating gain was more than offset by
higher operating expenses, the re-
port shows.
Home Loans Show Declines.
Home loans totaling 1881 300 were
made during May by the District OF
Columbia's II insured building and
loan associations, Oscar R. Kreutz,
head of the Federal Savings and
Loan Insurance Corp, announced
today. The same ASSOCIATE loaned
s942,6O0 in April and $l,613,964 In
May, 1941.
New construction loans totaled
only $22,30O during May, showing
the full effect of wartime restrlc-
tions, while loans for home purchase
amounted to $317 700-evidence OF
an increasing demand for existing
properties, Mr.. Kreutz asserted.
Home loans totaling S936,600 were
made during May by Virginia's 26
insured associations. The same
group loaned $1,157 300 in April and
s1,218,254 in May, 194l.
Home loans totaling s2,36S, 400
were granted in May by Maryland S
q insured associations, compared
with S1,824,S0O in April and ST.
l1o,918 in May, 194l.
War Bond Sales Limits Raised.
The Reserve Bank of Richmond
has notified all banks, other imam
cial institutions and security dealers
of the Treasury's action in raising
the limit of holdings of War savings
bonds, series F and G, purchased in
any one calendar year from $4,000
to 100000. The Is 1000 limit on Sc
ries E bonds is unchanged.
The Treasury states that thous-
ands of individuals, corporations,
labor unions and other organizations
have already purchased $4,000, the
former limit, and under the new
regulations these holders may buy
$4,000 in the remaining six months
of this year. The limitation is based
on the cost of the bonds and not
maturity value. The Treasury estl-
mates that between 100000 and
100000 bonds already have been
sold
One Item Lifts Bond Issues.
According to the Daily Bond
BUYER, the voters of 81 communities
in IS States during the month of
June authorized a total Of S6,836, 900
of new bond fotations, as compared
with S7,484,000 in June, 1941.
Ordinarily, bond authorizations in
June are not very heavy, and last
months total is largely accounted
for by one item alone, S4,250,00G by
the voters of San Francisco.
Wholesalers Sales Decline.
The Commerce Department and
National Association of Credit Men
report that increases in sales OF
wholesalers registered for each OF
the first five months Of this year
compar with corresponding
months a year ago. have lesseneo
each month, declining gradually
from 81 per cent for January to e
per cent for April, and falling off
sharply to per cent for May, the
lowest month-to month increase re-
corded in the past 18 months.
A loss in sales of 9 per cent be-
tween April and May was by far thu
largest decrease between thes'
months in five years, the repor
says.
Today's Trading on Exchange.
The newly listed Washington Ga
S. preferred stock sold on the Wash.
ington Exchange today at 101 4
same as last weeks close. Tht
final bid was 101 with 102 asked
Capital Transit appeared on th'
board today, with IS shares NOV
ing at 20, also unchanged. Th'
last bid was 20 with 81 asked.
Only three stocks are now beinI
quoted ex dividend, American Tele
phone, American Security and Sc
curity Storage.
CxL