Omaha daily bee., 1899-11-24
The FIELD OF ELECTRICITY
barvels Of the Century's Progress Illus
trated by Statistics.
ELECTRICITY A BlLlIoN-DoLLAR INDUSTRY
Trolley Lines RS Freight Carriers
Improved Headlights on Locomo-
acknowledgements in other
Directions.


Improved Headlights on Locomo-
acknowledgements in other
Directions.
II any other field OF human endeavor. raj
roads alone excepted, contends with elec
tricity for supremacy in the record OF tn
closing century, figures running into the bi
lions must be produced or the contest aban
doned. Just 100 years ago Voltas discover
OF the electric battery laid the foundatio
for the commercial utilization OF electricit.
Thirty yars later Faraday's great discover
of electro magnetic induction widened tn
Held immensely. About twenty years afte
that the magnetic telegraph was created b
Morse. 1t remained for years almost tn
only commercial application Of the mysteri
Gus force which Franklin drew down fror
the clouds.
/ At the Centennial exposition Bell exhib
| tied his telephone, but the real scope OF II
possibilities was realized neither by the in
ventor nor the many scientists, especiall
! the British scientists, who pronounced ii al
| ingenious toy. There were a few arc light
at the exposition, but hardly a suggestion
| OF the incandescent light or OF the electric
| motor Electricity was still OF little service
| to mankind, save in its application to tn,
telegraph and the investment Of the com
mercial telegraph and cable companies anC
of railroads operating their own systems
was probably represented by capitalization
between 500, ,O00, 900 and 5000, 900.
In the twenty-four years which have
elapsed since the Philadelphia festival this
| amount has been swollen to the almost fab.
| ulous sum of $4,000, ,OOO,O 900 in this country
h,, ~ a.
Of electrical industries alone. There are va
rious other branches, whose stocks, bonds
and obligations reach a total of at least
$3.50 900 more. In this list is not in
cluded the manufacture and operation OF
the automobile, the youngest application OF
electricity.
These figures, telling the story OF growth
unparalleled in history, from a financial
standpoint, are given in a pamphlet written
by T. Comerford Martin for private circula-
tion. What is even more astonishing Is that
the aggregate earnings of the various de-
partments Of the industry are sufficient to
pay dividends or interest Of from to per
cent, and even more, on the whole mass of
securities
Mr.. Martin is editor Of a semi-technical
electrical paper. He draws most OF his ma
terial from official reports and in the in
stances where these are not available makes
estimates.
Street Railways Lead.
In point Of capitalization electric railways
are by far the most important branch OF the
industry. Electric railways are the growth
of ten years. That is to say, in 1888 the
electric mileage in the United States was in
significant In 1899 the proportion OF street
railway service which is not based on elec-
tricity is so small that Mr.. Martin dismisses
it as unworthy OF notice.
At the close of 1898 the capital liabilities
of the street railways Of the country were
81, 621, $40, 900, a gain of nearly $50, 1000, 900
in single year. There were about 800 roads
or systems. OF these 220 earned $3.50, 900, 900
in 1898. Estimates made by several author
tiles working from different bases placed
the gross earnings of the roads outside of
the 220 at $4,000, ,000.' or $175 900 .000 for the
whole number. II the net were estimated
at around 40 per cent, there was thus yielded
a sum between 100000 and $40, 900, 900, or
sufficient to pay from to per cent on the
whole capitalization.
Electric Lighting.
Electric lighting is next in Importance
There are upward of 2,40O central station
lighting companies operated by corpora
tions. They have a gross capitalization In
stock of over $275,OOo,OOO. With bonds,
doating debt and other obligations, the in
gestments, Mr.. Martin asserts, stand not
less than $500, 900, 900.
These plants include capacity of 1000 900
horsepower in engines and water wheels, to
which are connected 275,0OO arc lights and
over 10,000,000 incandescent lamps. Here Is
\ 1fa1i of
engines and generators in the station and all
other appurtenances. To the capitalization
If the quasipublc companies Mr. Martin
adds $4O0,O0O,OO0 for isolated and municipal
plants. Taking arc lamps at $50 a year, he
stimates an increase OF 22,75O, ,oc0 is yielded,
besides s36 goo as the proceeds from in
lamps and s7,50OOOO as being
derived from the sale of power for driving
machinery, or total OF $50, 100000 The |
,osts charged against this he places at 60 !
'er cent, leaving $26 ,500,O 600 as the net profits
" the central station industry, or the equiv |
llent OF Az per cent on the face value of its !
capitalization of $600,OOo,O0O. No attempt is
made to give the earnings of municipal ,
'lants and those owned by private concerns. !
Telephone n Profit Getter.
In the matter of earnings the telephone |
makes dazzling exhibit. There are over
300 independent companies in the coun- ,
ry, but the Bell and Its constituent com
'anies are taken into principal account by
Mr.. Martin. At the close of 1898 the Bell
ompany's construction account and real
estate reached the sum of $40, ,OOO, ,0OO to
which is added $35.OOO,O 900 for the stocks
nd bonds OF the parent company and s15,-
10000 as the investment in the long-ds-
ance system, or $3.50, 900 900 in all The last
Bell annual report gave 1921 900, 900 as the
lumber of conversations exchanged in 1898,
nd the cost at between and 9h cents At
cents message this would yield $40, ,24O, 900. I
he Bell long distance service last year
mounted to $2,205, 900. II the earnings OF
he independent companies, which operate
at lower rate OF charges, are placed at
My s5,O0O,O00, or 500 a telephone, and the
ntire total of earnings be figured at $780,
100000, or considerably less than the totals
iven. there is realized $50, ,OOO, 900 as appli-
able to dividends, after deducting the high
ate OF 30 per cent for the cost of op-
ration. The profits are sufficient to pay 5
er cent on a capitalization of $l00, 900 900,
n double and more that rate on the sum
ctually invested.
Mr. In, H.