New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-06-29
PUBLIC UTILITY NOTES.

Although the organization OF the Central
States Electric Company. which will hold
S,1S46O0 or more than 10 per cent OF the
common stock OF the Cleveland Electric
Illuminating Company, mas not been com
pleted, It is said. its board Of directors will
contain some OF the men best known in
the public utility field.
r z. Breed, president OF the American
Gas and Electric Company; Edwin NJ.
Bulkley. Of Spencer Trask & Co; Arson
w Burchard. OF the General Electric Com
pany; De Forest Csndee. president of the
Federal Utilities Company; George A. Gal
liver v1ce-president of the Republic Rail-
way and Light Company; Parmely w. Her
rick, Of Herrick, Parmelee & Crawford, of
Cleveland: Robert Lindsay, general mana
ger Of the Cleveland Electric Illuminating
Company; Robert G. Morse of Jackson &
Curtis, Boston; James Richardson, of Rich
ardson e. Clark, OF Providence. r. l. Sam
uel SCovil. president OF the Cleveland
Electric Illuminating Company. and Har-
rison Williams, of New York, will be in
the board.
The holding Of over 70 per cent Of the
stock of the Cleveland Electric Illuminating
Company leaves the outstanding shares OF
the Central States Electric Company repre-
scented by *3sl1,O per cent preferred. OF
an authorized issue Of S30.OO0. 600 and A,3S4.
400 common stock, of an authorized issue OF
SlO.0Oo.O0o. The company also will have out
standing s4,S33000 ten-year 8 per cent notes
Of an authorized issue Of s. 0oo, 900. The notes,
IL is said. have been sold TO the Guaranty
Trust Company and Spencer Trask Co,
and will be offered 10 the public within
few days at a price to Yield SO per cent.
The issue Of additional notes may be made
only at the rate Of sT.S224 par value IN
notes for each additional 800 par value
Cleveland Electric Illuminating Company
stock deposited with the trustee. The notes
may be converted at any time at par into
the per cent preferred stock OF the COM
pany at 105
The net income OF the Cleveland Electric
Illuminating Company for 1911 was tsl4SS2,
and this Is expected 10 show a steady in
crease. due 10 extension OF service by the
company. The company has Just closed
a ten-year contract with the Cleveland
Railway Company to furnish the latter
with a large amount Of additional power
needed by the railway. To provide for this
contract an additional unit Of 1000 horse
power is 10 he installed at once by the
Cleveland Electric Illuminating Company.
This will give 10000 horsepower in its CEN
trail power station.
The Electric Bond and Share Company
apparently is proving 10 be a good earning
proposition for the General Electric Com
pany, which owns all It's outstanding g. &C.,
900 common stock Previous 10 January "a
1912, there was outstanding 100000 Of this
common stock, on which S per cent year
regular dividends were being paid Earn
ings OF the company will be sufficient TO
/ pay the same dividend on the increased
issue.
| The Electric Bond and Share Company
was organized in 1906 by the General Elec-
/ trio Company for the purpose OF taking
| financial interest In public utility corpora
| lions, 70 buy. hold and sell their securities
and act as their fiscal agent II also fur
nishes the necessary capital and manages
consultations and congratulations OF these
| properties.
At the time OF organization the company
had s.. 10000 preferred and $500 900 common
stock. All Of both classes Of stock we're
| purchased by the General Electric at par
| for cash. On the preferred stock per
cent dividends we're paid until January CT
this year. when the rate was raised TO 6
per cent The preferred stock can never
exceed the common stock outstanding, and
no dividends can be paid on the common
stock. except so long as there remains
surplus equal 10 IS per cent OF the pre-
ferred stock