Evening star., 1948-01-04
Capital Activity
AtHigh hLeveIs,
Loans Expand
Bunk Chiefs Pleased
As Earnings Hold
Near 1916 Record
By Edword G. Stone

elated over 1947 results, earnings
being close to the record year 1916
Commercial and real- estate loans
expanded impressively, making up
for the loss in revenues due to the
Treasury's withdrawal of war loar
deposits.
Operating costs mounted but in
come permitted payment of regular
and many extra dividends. Clear.
ings scared to new heights as each
month saw high marks in cancelled
check totals, reaching $3,426, ,622 ,059
an increase of $286, ,488,051 in Il
months.
The Capitals 27 building and loan
associations registered new alltime
peaks, as assets crossed the
1920, 900, 900 mark with loans tx
veterans for home buying and loans
for construction setting an un-
precedented pace.
New Listings Aid Exchange.
Business on the Washington STOCK
Exchange was under last year ano
most prices were lower at the yeal
end, but recent listing of the new
Potomac Electric Power common
stocks gave new life to the market
In December.
Department store sales were
per cent ahead of 1916 in II months
and merchants reported Christmas
trade at alltime peaks. Telephones
In service, daily calls, gas and cleo
tricity sales were up substantially
and it was one of the biggest years
for life Insurance. Postal receipts
reversed their downward trend
Rising costs hit utility earnings a
hard blow. While vital readjust-
ments are still awaited, bankers and
business leaders forecast smooth
sailing at least during the first hall
of 1913.
Interviews Picture Year 1947.
The year 1947 was one of the
most eventful since the Capital
Transit Co. was organized in 1888
E. D. Merrill, president, stated
higher wage costs and lesser
revenues catching the company in
the imitation squeeze"
The May rate increase was wiped
out by new union wage demands
adding $2,5o0 900 annually to al
ready high costs. The flve-day week
caused new and costly complications
and trafac dropped about 10 per
cent below last year. Costs are up
much more than revenues. Transit
will agatnshave to ask relief.
Where the cost Of a transit ride
can go beyond a straight 10c
fare before reaching the law of
diminishing returns is unknown.
Twelve other cities now have 10c
fares, with no tokens or passes, Mr..
Merrill said.
Gas Conversion 1947 Highlight.
The year 1947 was one of con-
tinued growth for the Washington
Gas Light Co., President Marcy l.
Sperry stated. Meters set record
numbering PAL 900, with an 5000 in
crease over 1916.
The years highlight was the con-
version to natural gas, requiring
adaptation to the new fuel of 3,000,-
900 gas burners. The change avoided
the necessity of large capital ex-
penditures which otherwise would
have been required for new manu-
featuring plants in Metropolitan
Washington.
During the year operating ex-
penses were abnormally heavy due
to the changing from mixed to nat
ural gas, Mr.. Sperry added.
10000 More Phones Wanted.
Continued heavy demands fol
telephones and a great increase In
service characterized 1947 opera
tions of the Chesapeake & Potomac
Telephone Co., James B. Morrison
vice president and general manager
asserted. About $14,0O0,000 was ex-
pended on a $70,o00,000 expansion
program.
Owing to scarcity of equipment
10000 people are still waiting for
desired service. Because expenses
have risen at a much faster pace
than revenues, 1t was necessary to
apply to the Public Utilities Com
mission for increased telephone
rates, the first such action since
1920, an increase being granted.
Pepco Has Hectic Year.
In compliance with the Public
Utilities Holding Company Act, the
Washington Railway & Electric Co
was dissolved during 1947, the Poto-
mac Electric Power expanded ano
reclassified its capital and the North
American Co. cut to less than 1G
per cent it's holdings in the Potomac
company, A. G. Neal, president, sale
In summing up an epochal year.
The demand for electricit,
reached a new peak, with a PEI
cent upturn: four new substation
were completed; rates remained
among the lowest in the country
and the company refunded $3,213,.
COL to customers on court orders
For 1948, the company has a con.
struction budget Of $4,000, 900, larg.
est ever planned. =,
Home Loans Expand Sharply.
The building and loan associa.
tions made combined loans of abou,
$115,000,000 in the first II month.
OF 1947, according to Edward L
McAleer, president of the District
Building and Loan League, of which
30 per cent was for the purchas,
Of homes. Over $28, ,000, 900 was ad.
vanced for construction.
Most Of these associations are re.
moving restrictions on the amount.
shareholders can invest, due to thu
increased opportunities for loans
Assets mounted steadily durins
1947 to $320. 100000. The 1948 out.
look is bright, as homes will bt
built in greater volume, involvins
still more loans, Mr.. McAleer pre-.
dicted.
Higher Markets Forecast.
On the Washington Stock Elk.
change there were more declines
than plus signs In 1947, commented
Thomas G. Montgomery, president
Volume was of moderately in both
stocks and bonds. Principal changes
IN the list included removal ol
Washington Railway & Electric
preferred and common, Capita.
(see STONE. Page ED