Evening capital. (Annapolis, Md.) 1884-1910, 1900-01-03
THERE ARE BILLIONS IN II.
Enormous Investments in Uti-
LIKING Electricity.
THE GIGANTIC FIGURES
Capitalization Of $4,000, 100000 Based
on the Use Of Their Power-Some
Will 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
50. 900. OG0O 900 ia 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 $3.50, 900 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
to per cent, and even more, on the
whole mass Of securities.
Mr.. Martin is editor of semi-tech-
nical electrical paper He draws most
OF his material from official reports,
and I'm the instances where these are
not available makes estimates.
In point OF capitalization electric
railways are by far the most import
mt branch OF the industry. Electric
railways are the growth OF ten years.
That it to say, in 1888 the electric mile
age I'm the United States was insignia
cant In 1899 the proportion of street
railway service which is not based on
electricity is so small that Mr.. Martin
dismisses II as unworthy of notice
AT the close OF 1898 the capital La
bilities of the street railways of the
country were $l.621, $4,000. a gain of
nearly S15O.000.000 in a single year.
There were about 500 roads or systems.
OF these 900 earned $3.50. 600. 900 In 1898.
Estimates made by several authorities
working from different bases placed the
gross earnings of the roads outside of
the 220 at $45.0OO,0OO. or $175,O0O,0OO 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 $70,000.000, or sufficient to
pay from 4 to 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 a gross
capitalization in stock of over $275, $780,
600 With bonds. floating debt, and
other obligations. the investments, Mr..
Martin asserts stand not less than
5000. coo,
These plants include a capacity of
1000. 600 horse power in engines ana
water wheels. to which are connected
275000 arc lights and over 100000 in
candescent lamps. Here is a capital
ization of 5000 to the horse power of
engines and generators in the station
and all other appurtenances. To the
capitalization of the quasi-public COM
panes Mr.. Martin adds $500. 100000 for
isolated and municipal plants. Taking
arc lamps at $50 year. he estimated
an increase of $22. $780, 900 is yielded, be-
sides S36.000000. as the proceeds from
incandescent lamps. and $7.500.000 as
being derived from the sale of power
for driving machinery. or a total OF
$66, $50, 600. The costs charged against
this he places at 60 per cent. leaving
SOC, $780, 900 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 5000 OOO.0 600. 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. hut the Bell and its 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
I'm 1898. and the cost at between l and
9l9 cents. AT cents message this
would yield $40. 2i00 600 The Bell long
distance service last year amounted to
$2.205. 900. III the earnings of the indie
pendent companies. which operate at
a lower rate of charges, are placed at
only $5.000.000 or $50 telephone, and
the entire total of earnings be figured
at $50.000.000. or considerably less than
the totals given, there is realized $2o,-
000. 900 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 a capitalization of 100000. 900, or
double and more than that rate on the
sum actually invested.
Mr.. Martin places the investment In
telegraphy in this country at not less
than $3.50, ZOO. 900 including that of the
Western Union and the Postal COM
mercial companies. and those of the
hundreds of railroads operating their
own systems. Nearly every large city
has it's own elaborate police telegraph
system, and upwards of $50 cities and
towns are equipped with fire alarm
telegraphs.
In the manufacturing branch of the
electrical industry. Mr.. Martin states.
fully 500. 5000 is actually invested.
Three concerns alone represent cap
italization of s5O.000000. In seven years
il is estimated that concerns engaged
in long distance power transmission
and in the manufacture and operation
of electric mining appliances have is
sued securities aggregating 500, 600.
There are over 400 electro-plating es-
Establishments in the country, with an
invested capital of $50 000. 600. Mr.. Mar
tin SAYS: number of electrolytic
plants. representing several millions.
more are invested in electrical bells,
hotel annunciators, acknowledgements
equipment, interior" telephones. and
an endless variety of miscellaneous ap-
planes. Allowing s10000.000 for these
minor appliances and the electrolytic
plants. Mr.. Martin makes the total
Capitalization of the electrical indus
try $S.260,00o.0 00
the rapid development of automobiles.
According to figures given in the trade
Journals. there have been built and are
under construction not less than 10000