Evening journal., 1900-01-26
THERE ARE Billions INIT.
Enormous investments in Uti-
LIKING Electricity.
THE GIGANTIC FIGURES
capitalization Of $1,000 100000 Based
on the Use Of Their Power-scnne
VIII Get Rich and Others Be Ruin
ed-The Railways Are in the Lead.

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
SO, zoo, 900 900 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
total Of at least $25O,000,O00 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
growth unparalleled in history, from
financial standpoint, are given in
pamphlet written by T. Comerford
Martin for private circulation. 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 4
to 5 per cent. and even more, on the
whole mass Of securities.
Mr.. Martin is editor of a semi-tech-
nical electrical paper. He draws most
of his material from official reports,
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 insignih-
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 liza
bilities of the street railways of the
country were sl,621 $4,000. a gain Of
nearly S15O0OO.O00 in a single year.
There were about 900 roads or systems.
OF these 220 earned $3.50. 000, 900 in 1898.
Estimates made by several authorities
working from different bases placed the
gross earnings of the roads outside of
the 22O at $4,000 900. or SIZE. 100000 for
the whole number. If the net were es-
timated at around 40 per cent. there
was thus yielded a sum between $780,
100000 and s70.0OO,O0O, or sufficient to
pay from to per cent. on the whole
capitalization.
Electric lighting is next in import
ance. There are upwards Of 2,4O0 CEN
trail station lighting companies operat-
ed by corporations. They have a gross
capitalization in stock OF over $275 900, =
600. With bonds floating debt. and
other obligations, the investments, Mr..
Martin asserts, stand not less than
5000, OO0. 900.
These plants include a capacity OF
100000 horse power in engines and
water wheels. to which are connected
275,0OO arc lights and over 10000, 900 in
candescent lamps. Here is a capital
ization OF 5000 to the horsepower OF
engines and generators in the station
and all other appurtenances. To the
capitalization of the quasi-public COM
panies Mr.. Martin adds $500. 900 for
isolated and municipal plants. Taking
arc lamps at $50 a year, he estimated
an increase Of S22, 100000 is yielded, be-
sides SS6,O00,000, as the proceeds from
incandescent lamps, and S7,500.00O as
being derived from the sale of power
for driving machinery, or q total of
500 $500 The costs charged against
this he places at 60 per cent, leaving
s26,500,000 as the net profits Of the CEN
trail station industry, or the equivalent
OF AZ per cent. on the face value of its
capitalization OF $500. 600, 900. 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 n dazzling exhibit. There
are over 1900 independent" companies
in the country, but the Bell and it's con.
stituent companies are taken into prin.
cipal account by Mr.. Martin. The last
Bell annual report gave 1921 900 900 as
the number Of conversations exchanged
in 1898, and the cost at between 1 and
9Ik cents. At 4 cents a message this
would yield S49, 100000. The Bell Ions
distance service last year amounted tC
s2,205,0 II the earnings Of the inie.
pendent companies. which operate al
a lower rate Of charges, are placed al
only $1,000, 000 or $40 a telephone, anc
the entire total of earnings be figured
at S5O, 000, 900, or considerably less thar
the totals given, there is realized $50.
700 as applicable to dividends, af
ter deducting the high rate of 80 pc
cent for the cost Of operation. TIL,
profits are sufficient to pay per cent
on a capitalization of 100000, 000 o.
double and more than that rate on th'
sum actually invested.
Mr.. Martin places the investment ii
telegraphy in this country at not les
than $3.50, 900. 900, including that of tn
Western Union and the Postal com
mercial companies, and those of tn
hundreds Of railroads operating thei
own systems. Nearly every large cit
has its own elaborate police TELEGRAPH
system, and upwards of $50 cities an
towns are equipped with fire ALARM
telegraphs.
In the manufacturing branch of tn
electrical industry, Mr.. Martin state
fully s10O.000000 is actually invested
Three concerns alone represent a cap
italization OF S5O0OO.OO0. In seven year
It is estimated that concerns engage
IN long distance power transmissio
and in the manufacture and operatio
of electric mining appliances have is
sued securities aggregating 100000, 90
There are over 400 electro-plating es
Establishments in the country, with a
invested capital Of 100000 900. Mr.. MAJ
tin says q number of electrolyti
plants, representing several million
more are invested in electrical bell
hotel annunciators, electro-t herapeut
equipment, interior" telephones, an
an endless variety of miscellaneous al
planes. Allowing S10.0OO,000 for the:
minor appliances and the eiectrolyt