The Detroit times., 1911-12-13

s5.724,s9s 90 Il4.4sI %
1911. estimated |, $685. 67 90
| Peninsular, LIST
| mo 1911, esti-
| mated ....... Il soc. 0OJ 90
s3,l5O.O67 90 $4,000 90
| s3I3,450 so
This sum. exceeding 1900. 600. 90, rep
| resents the direct saving 10 the light =
Ing consumer using the service OF the
| operating companies. by reason OF the
reduction In the primary rate as re-
CURED by the stipulation herein re-
| ferred to.
There was a further saving OF per
| maps 100000 per year by reason OF
the dumping OF the demand meters in
June OF each year. which dumping
| was agreed on In the stipulation
| PROGRESS OF THE COMPANIES.
The companies have progressed
| largely In the way OF increased reve-
nue., decreased operating expenses (pro
RATA and increased efficiency in
| handling the output OF the company.
The policy OF the company for the
| last -FOUR years has been consistently
Tor rapid development and Increased
Iacilltles TO take care OF the enor-
mously increased demands, due to the
rapid growth OF the city
The changed conditions are summar-
lied briefly as follows:
| The output has quadrupled;
The number OF consumers has in
creased from $500 TO 10000:
The number OF incandescent lamps
connected has increased from 400 900
| TO nearly a million:
| The horse power OF direct current
motors connected has increased from
5000 to over $4,000;
The horsepower OF alternating cur
rent motors connected has increased
from 1900 TO 22,500:
Tle connected load hrs
from 10000 kilowatts 10 over 10000
kilowatts, inclusive OF the bulk de-
mand:
The number OF residential consum-
ers has increased from $500 to over
| "a 500
The foregoing increases in OUTPUT
have largely increased the demand on
the facilities OF the company and large
sums or the money have necessarily
been spent by. all the companies for
improvements and betterments to the
facilities
The expenditures for practically
doubling the capacity OF the generat-
ing plant at Delray and largely In
creasing the distribution systems OF
the Edison Illuminating Company and
Peninsular Electric Light Company
during tie four years ending June 30
1911. have exceeded $4,000, 10000
The additions to the distribution sys-
tenn may be summarized as follows
6.450 New Poles
61a Miles OF Wires
21.0O0 Services
1l,7S0 X w In Transformers
22,4SO New Meters
New Sub-Station at Grand
River
and substantial additions 10 the under
ground system OF conduits, ducts and
cables.
IL will be noted that while there
have been extensive expenditures I'm
the distribution system TO take care
f, Of the Increase OF residential consum-
ers. the average return In gross reve-
nue. TO the company for each residen-
tial consumer has decreased prac-
tically 10 per cent.
The average price received for cleo
trical output Of the company has prac-
tically decreased cents kilowatt
hour from .0515 to .03oi5 cents per
kiIowatt hour.
The reduced price per kilowatt hour
applies to all classes Of lighting con-
sumers and the largely increased out
put with decreased cost OF operation.
through bulk sales, makes for lower
net average cost by reason OF Inn
proved load factor.
The reduction in percentage OF oper-
ating expenses is largely due to the
Increased output and decreased per-
centage in lost current.
Generally speaking. the statistical
situation VIII compare favorably with
that OF any other light and power COM
pnny operating I'm like territory.
The largely increas ID gross revenue
derived from the largely increased
sales OF current, together with the re-
duccd operating ratio. has resulted In
a largely increased net revenue.
II must not be assumed. however.
that largely increased net revenue
necessarily means high rates To the
contrary, the average rate per kilo-
watt hour for all service is not quite
60 per cent OF what II was in 1906.
while the average rate per kilowatt
hour for general commercial business
is approximately 70 per cent OF the
average rate for all business in 1906
Increased plant efficiency and eff
cient management has reduced operat-
ing expenses resulting in increased
net revenue. Notwithstanding the re-
duction in rates
to receive a portion at least OF the in
creased profits, otherwise there would
he no incentive to work for the high
est possible efficiency.
BALANCE SHEETS
Copies OF balance sheets OF The De-
troit Edison Company The Edison
Illuminating Company Peninsular
Electric Light Company and Central
Heating Company hayf been esa placed IN
Commfnts on Capitalization dividends
and valuation follow;
CAFITALIIATlCN-
Nominally, the outstanding capLtali-
zatiun as OF December 81, 1910, OF the
several companies lis as follows:
DETROIT EDISON COMPANY
Commoa capital stock 5 $4,000 90
First mortgage bonds 5000 600 90
Debentures ....... l.75300O 90
Total .............Sts,5 500, 600 90
Edison IILTMINATTNG COMPANY ~
Cupmon capital stock s. l.o00, 600 90
Debenturc bonds ,...,... 2,i6o,O 900 On
Convertible notes ......... 300 90
Total .....S t25G00O 90
pFNINStIAR ELECTRIC LIGHT
COMPANY
common capital stock 8 zoo 900 90
Dcbpnturc bonds ...... |, $50. 600 90
Convertible notes ... 100000 90
Total .............s 1000. 600 90
GENITAL. HEATING COMPANY
common capital stock ..s % 600 90
First mortgage bonds. 10000 40
Convertible notes ...... 20. 600 90
II must he particularly understood
that tho stock Of the edison Illuminnt-
inp Companv Poninsular Electric
light COMPANY and Central Heating
{ otnpanv'ie IN tho treasury Of the De-
froit Edison Company ana not in the
hands Of tho general public There
fore = part ~ the capitalization OF the
Detroit Edison Cowpany represents
tssucs against treasury holding OF tho
STOCKS OF the compantcs mentioned
INCREASE ~ CAPT.
stoek
Detroit Edison 60. ................ S7ti, 900