Evening capital news. (Boise, Idaho) 1901-1927, 1914-09-13
BIG MERGER OF
POWER PLANTS IN
WEST PROPOSED
Possible That the Electric
Bond & Share Company
May Take Over Southern
Idaho Plants.

panies operating in southern Idaho and
Utah is evident from information that
was received here today from Salt Lake
reviewing the electrical situation there
with reference to the Utah Light &
Railway company The story is pub
Iished in the Herald Republican Of Salt
Lake and is as follows:
When the deal for the transfer of the
property Of the Utah Light & Railway
company is completed Sept 1S more
than s27,OOO,0OO win be paid for the
properties of the company. In addition
to the 1S.0O0,o 900 which price the Utah
Light IL Railway has set on its prop
critics, the new corporation. it Is under
stood will guarantee the 100000
bond issue of the old Consolidated Rail-
ways company. which was absorbed by
the Utah Light & Railway. and the old
Utah Light d Railway. which existed
before f. II. Hartman reorganized the
company. and placed it on its present
basis with the small capitalization of
the Utah Light & Railway company. it
is expected that with the purchase
price in its treasury the board of di-
recto-s viii declare d dividend of APP
proximately go per cent and close the
business of the corporation by surren
derinS its charter TO the state. The
Oregon Short Line railroad will receive
% per cent Of the dividend and the re-
maining 4 per cent viii be distributed
to stockholders who exchanged stock
in the old corporation for stock in the
new.
For many Years there has been
belief that the Utah Light d Railway
company was the individual property of
the late e. Fl. Hartman and after his
death the property became practically
the individual property of Mrs. Harri-
man and the Hartman children II is
officially stated that this is erroneous,
as the Oregon Short Line always has
owned the Utah Light & Railway com
pany. it never was the individual prop
erty of the late T.. II. Hartman. The
money derived from the sale of the
Utah Light & Railway company to
the Electric Bond & Share interests
Will finally so into the treasury of the
Union Pacific.
Railroad Not Anxious.
Tho Oregon Short Line has not been
anxious to sell the property of the
Utah Light & Railway company and it
was announced yesterday that all of the
advances for the sale of the property
lave been made by those representing
the Electric Bond & Share company
The Salt Lake Light G. Traction com
panN the million dollar corporation
which has been organized to take over
the Utah Light & Railway company
viii increase its capital stock after the
deal is completed 1t is possible that a
second CORPORATION will be formed to
take over the electric distribution sys-
ten and conduct the lighting, heating
aud power business as a separate prop
criy from the street railway.
Tic small capitalize ton of the Utah
Light a Railway company gives il
much greater proportionate earning
power than ii would have if the capt.
tai were Increased. While the street
railway docs not give much margin for
profits the light and power distribution
system does. There is a feeling in
financial circles that the Salt Lake
Light & Traction company or any other
interests of the Electric Bond q Share
company, which takes over the Utah
Light & Railway company from the
Oregon Short Line. will materially in
crease capital stock and also the issue
Of bonds.
To Form Two Companies.
For extensions and improvements it
is said that two bond issues will be
made by the new corporations which
are TO take over the properties. What
amount of bonds will be issued in addi-
tion to the present issue of bonds out
standing could not be guessed at by
H. :.
ton
The purchase of the Utah Light &
Railway company by the Electric Bond
& Share company completes the last
link in the plan of the Electric Bond &
Share company TO control the electric
business of the central ntermountain
country. The Utah Light & Railway
is the only paying electrical company
now operating in the central inter-
mountain country which is not under
the control of the Electric Bond &
Share company or which cannot be
purchased by it. 1t is the key to the
situation and for this reason the nego-
tiations were reopened by the Electric
Bond & Share company through a sub
sidiary of the Utah Power & Light
company after the deal had once Off
cially been declared off.
The Kuhn interests in southern Idaho
are the only companies now operating
outside the domination of the Electric
Bond & Share company. The Idaho
Oregon Light G. Power company, the
Idaho Light, Railway & Power COM
pany and their interests are in the
hands of receivers in Idaho The
Beaver River Power company, which
was operated for short time in Idaho
rs an independent concern, was pur-
chased by the Idaho Railways COM
pany subsidiary of the Idaho Oregon
company. 1t is possible that upon the
completion of the deal for the Utah
hight g. Railway company all of the
companies now on the financial rocks
may be taken over by the Electric Bond
d Share company or its subsidiaries.
Bows Wanted