The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-03-30
CALLS TAX OFFICIALS
UNFAIR TO UTILITIES
President Byllesby Of Standard
Gas and Electric Company
Tells Of Heavy Burdens.
EXPLAINS SCRIP DIVIDEND
Deficit in Actual Income Be-
comes Surplus by Interest
in Subsidiary Profits.

The report Of the Standard Gas and
Electric Company. q Delaware corpora
| ton. which controls many Western public
| service corporations for the year ended
December 81. 1913. gives q more favorable
| aspect to the financial standing Of the
company following the declaring Of scrip
dividends on the preferred stock.
The annual statement shows that on the
basis Of actual income the dividend dis
bursements for 1919 In cash and scrip
have exceeded the actual income BY
S1sO.s1a. But the company's interest in
the current net earnings Of It's subsidi-
panies has been allotted to "undistr1bvted
surplus.' amounts to SlSi.6so. and the
deficit becomes a surplus Of S20.sss above
all the dividends on the preferred.
In addition to that. II tho interest OF
the company In the amount arbitrarily
carried to depreciation reserve" by the
subsidiary companies and which amounts
to 3220.071 10 also considered, the COM
pany not only shows the full Q per cent.
dividend to have been earned on the
amount Of preferred stock outstanding
but also e28s.3s0. or as per cent. on the
common stock.
Tho gross earnings Of the subsidiary
companies for the year were el<.oso.4t2,
- compared with el3.l9<.s0% In 1919.
with net earnings Of S6.Sl6.+$8. against
eo.029.6S3. Tho summary OF income and
proHt and loss shows total earnings OF
S.539.Si0. with net earnings Of S1.6o?.so4.
The net income was s75i.50s. which
added to the profit and loss surplus at
the beginning OF the period gave profit
and loss gross surplus OF N.76o.165. Fol-
lowing the payment OF dividends In cash
and scrip together with premiums on the
notes and bonds redeemed there remained
profit and loss surplus on December 81.
1918. OF Se79..&5.
H. NJ Byliesby. president Of the COM
pany. in his statement to the stock
holders. calls attention TO the increasing
inclination on the part Of taxing officials
to force public utility companies to bear
more than their lust share OF the ex-
penses OF government. During the
year OF 1913 the taxes Of the subsidiary
companies increased Sl02.2ii over 1912.
In addition the various companies have
had to bear a heavy burden OF expense
through defending themselves before tax
Ing bodies and appearances before public
service commissions on the question OF
rates. &c. Earnest efforts are being made
to secure fairer basis for the assessment
and collection Of taxes. Mr.. Byllesby
STATES tnat OiTcCtOTS ueem u uUauNisdnlc
to resume cash dividends until all the
collateral trust notes outstanding are re-
tired. There are 100000 Of these. the
last Of which mature on June I, 1916.
The collateral trust notes are. however.
now being retired from the surplus In
come OF the company. All the subsidiaries
Of the company have felt the effects OF
the depression Of the last year. but II Is
believed that the worst Is now over In the
territory where the various subsidiaries
are located.
In regard to the agitation regarding
holding companies. Mr.. Byllesby says:
notwithstanding the existing agitation
against holding companies. II is believed
that companies of the character OF the
Standard Gas and Electric Company have
little to fear" He adds that the present
attack Is directed against monopolies and
that the Standard Gas and Electric Com
pany In no wise comes within the purview
Of legislation against holding companies.
In not one single instance does the com
pany control subsidiaries which are
natural competitors.