Evening journal., 1914-04-13
MONDAY APR. I3. 1914.
PUBLIC UTILITIES AND CRITICISM.

n ~ ANY of those who thoughtlessly maciously,
III mako public utility corporations the objects OF
unfair unworthy injurious attack lose sight Of the
TACT that the American investing public as a whole
owns those corporations and that such attacks work in
jury IN many instances upon the very persons whom
such critics and reformers profess TO be seeking to
serve They lose sight Of the small investors. They
fail to keep In mind the that many the worlds
greatest utilities are financed with the money OF men
and women of moderate means who cannot afford TO-
have the value their holdings impaired by such sense
less attacks.
We find much that Is OF interest relative 10 utility
corporations portions Of lecture recently given by
Francis r. Homer of Berron, Grscom d Co.. under the
auspices Of the Finance Forum OF New York Hs'sub-
ect was "The Magnitude OF the Electric Light and
Transportation Business In the Of that lecture,
he said
Today there are over $AOOOOOOOOO invested in those
ventures. will tell you that during 1913 over mil
lion dollars day including Sunday was put into
those ventures and then at the end of the year, by
the way Of a Christmas gift the investors had to
provide about S65,O0OOoO of additional money fhat
I'm 1912, when money easier TO get and the growth
OF the business not hampered by the limitations
the security market instead of there being invested
In this business IN the neighhorhood of SA55OOOOOO
there was in 1913 the showing for 1912 S61S,
lO0Oo0-so you are dealing with a tremendous imam
cial. economical and commercial problem. AZ the
preliminary hearing which was held az Washington
before the Interstate Commerce Commission, on the
petition of the railroads for per cent increase IN
freight rates. Mr.. Willard, the president of the b. a.
o. system said that since 1910 the railroads had eN-
pended 5000 900 O00 that they had bulded 10000 adj
litional miles Of track and sdings and that their
gross had increased but that their net reye-
nuos had fallen on Against that record of S6O000O
invested by the railways In three years, we set
up the OF the public utilities corporations of
this country, which have invested IN the one year
S61S 900 goo, and I'm adverse year. like last year
sass. 100000 or a total OF S1O7l,000O00 in the two
years The figures for 1871 not available but as
that "a good financial year, II Is sate 10 assume
that the investment that year was in the neighborhood
$500 S6000000O0 and today for every dol
lar that Is going into railroads. there two and
half dollars going into public utilities.
Since 1902 and stopping with the termination OF
1911 70 which the last data have Is brought up, the
gross earnings the and electric light and
companies increased 110 per cent The net earnings
kept pace and increased 100 per cent The electric
railways for the same period of ten years showed an
Increase in gross Of 75 per cent They showed in
crease in net OF 60 per The steam railroads for
the ten-year period showed a growth In gross OF so
per cent and a growth IN net OF only 40 per cent.
whilst industrials showed for the lOyear period,
growth Of only 15 per cent. with decrease In the net
earnings applicable 10 dividends OF 10 per cent Con-
ecouently. In a 10-yoar period In which have added
millions 10 our populations when industrial growth
should least keep step with the increased demands
incident 10 enlarged population, It's growth was
only per cent. and IL had to manufacture and
produce such basis that IL represented loss OF
want you 70 realize that these tremendous results
IN growth both gross and net In public utilities COM
panies, have been accomplished under circumstances
of which you find parallel In any other line Of
human activity
Those who are predisposed TO strike at public utility
corporations upon the strength Of misinformaton or
half-baked information should take heart the facts
and figures presented with such lucidy by Mr. Homer
and decide that their duty assist IN the develop
ment Of these great American enterprises and crit
cize them only when facts obtained show clearly thai
are deserving OF criticism.