Despite record revenues, earnings for T. Rowe Price Associates Inc., the Baltimore mutual funds company, dropped 19 percent in the first quarter primarily as the result of hiring employees and administrative costs associated with its new operation in Owings Mills.

The net income for the first quarter was $5.6 million, or 38 cents a share, compared to $6.9 million, or 47 cents a share, for the 1990 first quarter. Revenues increased by 8 percent to $45.6 million compared to $42.2 million a year ago.

Price began moving into its Owings Mills complex late last year. That operation processes transactions and services retirement plans. Previously, Price had contracted that work to another company.

Price hired 50 employees in the first quarter, boosting its work force to 1,300.

President George J. Collins said the changes will start paying off later in the year.