East Oregonian : E.O. (Pendleton, OR) 1888-current, 1912-02-01
Electric Company Official to
Sell Bonds Reveals Status
of Business.
MAKES ENORMOUS PROFIT
Outstanding Bonds Exceed Physical
Value of Plants Yet Net Profits Arc
High-Concern is Identified With
General Electric Company.

That the business of the Pacific
Power & Light company, which has
the gas and electric monopoly in
Pendleton as we'll as in many other
northwest cities, is very profitable
is shown by a statement just issued
in behalf of the company.
Information concerning the busi-
ness of the trust is contained in a
circular over the signature of F. G.
Sykes, vice president Of the COM
pany and is given in connection with
an effort being made by the COM
pany to sell an additional $4,000
000.0 in bonds.
The securities of the company, au-
thorized and outstanding are given as
follows:
First and refunding 5s authorized.
$50, 200; outstanding s5,295,O0O.
Seven per cent cumulative prefer
red stock, authorized, $3,5O0,OOO; out
standing, s2,O0O,OOO.
Second preferred stock, authorized,
$2,5O0,OO0; outstanding, $1,50O,000.
Common stock, authorized, s6,000,-
/ UUU, OulSldIulilS, SOiUUuyUuU.
The circular states that the propos-
| ed $50, 600, 900 issue is to provide for
expected growth in the company's
| business. Issues of the bonds for inn
] provements and additions can be
made only in accordance with the
| terms of the indenture, or at par to
/ the extent of so per cent of the cost
| of such improvements or extensions
and then only provided the net earn
| ings for twelve consecutive months
in the preceding 13 months have been
at least twice the interest on all bonds
of this issue outstanding or sought
to be issued.
Makes Good Profits.
1t is stated that the net earnings
for the twelve months ending No
vember 80, 1911, We're more than
twice the annual interest charges on
all tn ebonds now outstanding.
The statement sets forth that the
cooperation has plants at the fol-
lowing places in the northwest: Lew
iston. Charleston. Wana Walla, Pen
dleton, North Yakima, The Dalles.
Hood River, Waitsburg and iinum-
cradle smaller places. In many of
the ldISeT lONIlS lLt COMPANY hdS
both gas and electric plants. 1t has
a street railroad at Astoria and Wall
la Walla and owns the Milton-Walla
Walla interurban line. At North
Yakima and Hood River it has water
plants also
As to the replacement value of the
property the statement says: Re
placement value: Messrs. ]. G.. White
& Co estimated that the physical
property of the company as of No
vember /. 1910, after deducting prop
er depreciation, had a present value
of $4,910,103 cash, no allowance being
made for water rights or for intan-
gibles such as going business, good
will or franchises. Between No
vember l, 1910, and November so,
1911. the company has expended ST.
140.722 for additions and extensions
and for the acquisition of new prop
critics"
Part of Great Octopus.
That the Pacific Power & Light
company is pant of a great electric
octopus operating throughout the
United States is shown by the fol-
lowing statement: "The entire COM
mon stock is owned by the American
Power & Light company, controlled
by interests associated with the Elec-
trio Bond & Sharing company, which
in turn is controlled through stock
ownership by the General Electric
company"
In California the trust sails under
the name of the Pacific Light &c
Power company, the words Light &
Power being transposed. That the
two concerns are both children of the
same parent trust is indicated by the
fact that similar bond selling cam
paign is now being conducted by the
California concern.