New-York tribune., 1913-07-13
Pacific Gas and Electric.

The passing Of is dividend by the Pa
widespread discussion among the public
interested In public utilities, and William
2. Bonbright 6 co. have issued tho fol-
lowing statement:
The company has undertaken develop
mcnt Of hydro-elcctric power on the South
Yuha and Bear rivers regarding which
We are officially informed as follows:
n large storage reservoir. calculated 10
supply an ultimate capacity Of $500
horsepower I'm SIX developments. II under
construction. 4 substantial portion Of
this development has been completed.
one powcrhousc Is being equipped for
$500 horsepower OF generating machin-
cry. The cost per horsepower Of this de-
yelopment o. estimated 10 approximate
$40. including a further part Of the de-
yelOpment FOR the ultimate l53,"p horse
power. This is one Of the lowest unit
costs In the United States for hydro
electric development The advantages
that VIII accrue 10 the Pacific Gas and
Electric Company through increased pow
or supply and lower cost OF power are OBJ
vious
The California Railroad Commission re-
Gently authorized E.O"rp ten-ycar per
cent debcuturcs 90 pay for this construc-
tion work Since the authorization of
these dcbcntures the market for securities
has been growing worse steadily. both IN
thu country and abroad. and the COM
pauy found Itself unable 10 negotiate the
sale OF these securities excepting al cN-
trayagant rates The company. there
fore. decided % sell N.c'uv ouc-year s
per cent notes. which are expected 10
take care OF it, financial requirements
until market conditions have improved
and the requirements can be financed on
a better basis.
The work that has been done on this
development has been paid for out of sur
plus earnings. the company having an
tlcipatcd no difficulty in selling securities
and 70 reimbursing itself Tor these eX-
peudtures. This bcing impracucabie. "a
WAS decided 10 adopt for the present the
very conservative dividend policy noted.
The officially reported earnings for the
ive months ended MAY o. 1913. follow
Gross Observation-Disclosures. s. 7DS. .us' us
Operating expense. q. ~Hsi. -" -.
So, Observation-Disclosures. saDsa so, 30
Interest Observation-Disclosures. i.i~T 500 20
Balance Observation-Disclosures. $40. .GIt 80
Preferred dividend requirements 2apopu GOO
Balance ...................... tiI.s. .GII 90
common dividend requirements ce'.o"o u'
SiaisIf &c.
Compared with the corresponding
months Of the preceding year. the gross
earnings show au Increase of N55.-.3 %
and tho net ala increase Of 4iSs6a' -.
These gains were obtained nOtUItnEtand-
inC the fact that substantial reductions
in rates for both gas and electricity were
made during tn last twcly, months.
which amounted 10 a reduction Of more
than 81 $4,000 Boo gross revenue. and also
"a strike on the construction Work. which
materially Increased the operating cN-
pcnseS during part uf ths time.
THE passing uf the dividend on the
common stock viii De disappointment
10 many stockholders. but We believe that
any losses sustained by the temporary
cessation OF dividends vii. be- more ;hau
Offset by increased value ~ the stock
when the companys present construction
work IS completed and the dividends are
resumed.