Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1914-09-15
SOUTH AMERICA Is
A PROMISING FIELD
FOR NEW UTILITIES
American Capitalists Plan
Invasion to Upbuild Won
derful Resources of That
Country.

Public utility operators in this country
are turning their attention to South
America as a promising field for the es-
tabishment of new electric railway,
light, heat and power companies. Com
mercial and manufacturing interests have
| already laid definite plans for the capture
OF that countrys immense trade, and now
the organizers of public service corpora
, tons. backed by the electrical supply
houses, are arranging to take advantage
of q situation which the European war
has brought about, and which promises
to open big new field to American in
vestors.
1t is logical to expect that, with the res
toration of peace In Europe, there will
come a demand for new capital with
which to repair the damage now being
done by invading armies. Naturally,
whatever capital may be in the hands of
European financiers at the close of the
war, will be needed for constructive de-
velopment in their own particular coun-
tries. This situation, unfortunate as 1t
may be, will be Americas opportunity.
For many years, utilities In South
America have been financed almost en-
tirely by European capitalists. American
financiers have had their hands full at
tending to the wants of the public In this
country, which has upward of $.O0O,OOo.-
900 invested In public service corpora
IlOnS. ne oOuln AtutllCdH sltudNiOh hdS
been almost entirely lost sight of, and 1t
was only recently, when exporters here
began a determined crusade to capture
the trade of the South America republics
that this field as a possibility for the
development of utilities was given serious
consideration.
The field is considered especially at
tractive because of the many favorable
concessions which may be had. Just
now the South American countries do not
represent any advanced development In
the line of utilities. National resources
of the most inviting character are await
ing to be turned to practical use, and
they need only American brains, backed
by American capital to turn them into
public service That they will soon OBJ
tain this much needed assistance Is APP
parent. since It Is the plan of American
promoters to shortly invade the field and
develop the great power possibilities that
have for decades gone to waste, because
of the lack of sufficient enterprise.
In the more prosperous countries. like
Brazil and Argentina, there has been
marked development recently, influenced
almost entirely by financial aid from
London, Brussels and Berlin. Particular
~ has Germany been making good prog
ress, because of the close connection be-
tween its money interests and the South
American importers, who have been for
years in close affiliation with each other.
In the past, with foreign capital large
ly interested, purchases of electrical sup
plies, whenever practical, were made
abroad. With American capital doing the
financing, however, the American cleo
trical concerns will, naturally. get the
greater part of the business
Total trackage owned by the 1860 street
and electric railways in the United States
in 1872 according to census bulletin
just issued, was 0470 miles and $40 miles
leased. About one-half OF these compa-
MES had their own power plant equip
ment. The total capitalization of the
operating companies was $4,70s, ,568, ,141, OF
which $2,3S4 344.513 was capital stock and
$2,324 223, ,62S funded debt These lines of
railways carried in that year 70. 1876, ,341,-
716 passengers, of whom 2423, ,91S,02f were
on transfers and 165,S69,025 were free.
Continental Gas and Electric Corpora
tion has acquired the properties formerly
controlled by Iowa Nebraska Public
Service Company, which was placed in
the hands OF receivers something over
year ago. The properties taken over are
Nebraska Gas and Electric Company and
Iowa Gas and Electric Company. The
transaction involved sl.25O,OOO. Funds
for the purchase were raised through the
sale of securities of the Continental Gas
and Electric Corporation to the Conti-
mental and Commercial National Bank
and the National City Bank of Chicago.
BY decision OF the Supreme Court Of
Appeals of West Virginia, the West Vir-
ginla Public Service Commsson has al
most unlimited power over rates and reg
ulation of public service corporations op-
Grating in that state.