The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1900-04-04
THERE ARE Billions N /.
Enormous investments in Utl-
lizlng Electricity.
THE GIGANTIC FIGURES

Capitalization Of sa,ooo,ooo,0o0 Based
on the Use of Their Power-Some
Will Get Rich and Others Be Ruin.
ed-The Railways Are in the Lead.
In the twenty-four years which have
elapsed since the modern development
OF electricity investment in it has been
swollen to the almost fabulous sum OF
s3,0O0,Ooo,o 900 in this country, by the
capitalization Of four or five branches
Of electrical industries alone. There
are various other branches, whose
stocks, bonds, and obligations reach q
total Of at least $3.50, 0,000 more. In
this list is not included the manufac'
ture and operation Of the automobile
the youngest application Of electricity
These figures, telling the story OF a
growth unparalleled in history, from
financial standpoint, are given in a
pamphlet written by T. Comerforo
Martin for private circulation. What
Is even more astonishing IS that the
aggregate earnings Of the various de-
partments o. the industry are sufficient
to pay dividends or interest Of from =
to 5 per cent, and even more, on the
whole mass Of securities.
Mr.. Martin is editor Of q sem!-teca'
nical electrical paper. He draws most
Of his material from official repor:s.
and in the instances where these are
not available makes estimates.
In point Of capitalization electric
railways are by far the most import
ant branch of the industry. Electric
railways are the growth Of ten years.
That it to say, in 1888 the electric mile
age in the United States was insignif-
cant. In 1899 the proportion Of street
railway service which is not based on
electricity Is so small that Mr.. Martin
dismisses it as unworthy Of notice.
At the close Of 1898 the capital lia-
bilities Of the street railways Of the
country were s1,621 $4,000, a gain Of
nearly S150,000,000 in a single year.
There were about 900 roads or systems.
OF these 220 earned s130.0o0,000 in 1898.
Estimates made by several authorities
working from different bases placed the
gross earnings Of the roads outside Of
the 220 at s45, 600, 900, or s175.0o0,00o for
the whole number. If the net were es,
tinated at around 40 per cent. there
was thus yielded sum between $780,
100000 and s7o,000,0J0. or sufficient to
pay from to 5 per cent. on the whole
capitalization.
Electric lighting Is next in import
ance. There are upwards Of 2.400 Gen.
trail station lighting companies operat-
ed by corporations. They have gross
capitalization in stock Of over s275. .000,-
oOO With bonds, floating debt, and
other obligations, the investments, Mr..
Martin asserts, stand not less than
5000, 900 600.
These plants include capacity Of
100000 horsepower in engines and
water wheels, to which are connected
275000 arc lights and over 100000 900 in
candescent lamps. Here is a capital
ization Of $500 to the horse power Of
engines and generators in the station
and all other appurtenances. To the
capitalization Of the quasi-public COM
panies Mr. Martin adds s400. coo for
isolated and municipal plants. Taking
arc lamps at 500 a year, he estimated
an increase of s22, 50,0C0 is yielded, be-
sides s36, 6,000,0 900, as the proceeds from
| incandescent lamps, and S1,500,O00 as
being derived from the sale Of power
for driving machinery, or total OF
see, ,250. 900. The costs charged against
this he places at so per cent, leaving
s96, 6,5Oo.OOo as the net profits Of the CEN
tral station industry, or the equivalent
Of AZ per cent. on the face value Of its
capitalization Of $500. 00o,O Oo0 No at
tempt is made to give the earnings OF
municipal plants and those owned by
private concerns.
In the matter OF earnings the tele-
phone makes dazzling exhibit There
are over 1900 "inde endent" companies
in the country, but the Bell and its con-
stituent companies are taken into prin-
cipal account by Mr.. Martin. The last
Bell annual report gave 1881, 100000 as
the number Of conversations exchanged
in 1898, and the cost at between 1 and
91s cents. At cents a message this
would yield S4a, 900. The Bell long
distance service last year amounted to
81, eos. 900. II the earnings Of the inde-
pendent companies, which operate at
a lower rate Of charges, are placed at
only s5,00O,o coo, or $50 q telephone, and
the entire total Of earnings be figured
at $50, 100000, or considerably less than
the totals given, there is realized $780,
100000 as applicable to dividends. af-
ter deducting the high rate Of 80 per
cent for the cost Of operation. The
profits are sufficient to pay per cent.
on capitalization of s4oo.000,000. or
double and more than that rate on the
sum actually invested.
Mr.. Martin places the investment IN
telegrap ply In this country at not less
than $3.50 100000. in, .uding that Of the
Western Union AMI the Postal COM
mercial com panies, and those Of tie
hundreds Of railroads operating their
own systems. Nearly every large city
has its own elaborate police telegraph
system, and upwards ot 750 cities and
towns are equipped with fire alarm
telegraphs.
IN the manufacturing branch Of the
electrical Industry, Mr.. Martin states
fully sl00,000,0o9 Is actually invested.
Three concerns alone represent cap
italization Of $50, 1000. 900. In seven years
It IS estimated tina: concerns engaged
in long distance Iower transmission
and in the manufacture and operation
Of electric mining appliances have is
sued securities aggIegating 100000, 600.
There are over 400 electro-plating es-
tablishaents in the country, with an
invested capital Of SO 100000. Mr.. Mar
tin says; a number Of electrolytic
plants, representing several millions,
more are invested in electrical bells,
hotel annunciators, electro-th-Tapeutic
equipment, "intericr" telephones, and
an endless variety cf miscellaneous ap-
pliances. Allowing s10,000000 for these
minor appliances and the electrolytic
plants, Mr.. Martin makes the total
Capitalization OF the electrical indus
try s3,260, ,00G. 900.
In this figure no account IS taken Of
the raDi6 developrent Of automobiles