The Washington times., 1915-07-03
PUBLIC UTILITIES
EARN SIX BILLION
0ne-siXth Of Nations Wealth
Invested in This Class Of
Securities. ...

NEW YORK. July s-of oil the
at $ls7, ,7ss Oh 900, more than one-sixth
Is invested in public utility companies.
those enterprises engaged in supplying
the people Of this country with light,
heat. power. water. gas, communication
by telephone and telegraph, and with
transportation by rail and water. In
cities. between cities, and across the
continent.
Authority for this assertion Is to he
found in a recent special bulletin of the
Bureau of the Census, Department of
Commerce, and In the statistics COM
piled by experts in the employ of one
of the largest Of all the public utility
corporations having offices In this city.
The wealth invested In public utili-
ties. exceeding $4,000. .OOo. .o0o earned In
the last year approximately $1,000, 900, 900.
No other field of investment was so
little affected by the European war,
and no other field at the present time
offers fairer prospects Of steady and
increasing returns.
Its Part in Finances.
No other group of interests has play
ed such a conspicuous part in the A.
past twenty-five years. Since 1902 alone
their gross earnings have increased
enormously. Those of the gas and
electric light corporations have IN
creased more than 100 per cent, those
of the steam railroads have increased
nearly 65 per cent while those of the
electric railways have increased nearly
70 per cent
The capital invested In the trans
portation and intercommunicatio ton cor
porat'ons in the past twenty-five years
has Increased more than si5, zoo, 600 60 or
on the average oil $500 10000 a year. In
| the same period their employees have in
creased 1I5 per cent, and their COM
pensations more than 200 per cert. At
vested in public utilities than in any
other single class of financial enter
! prise.
Approximately sl,1oo, ,oOo, 900 is invested
| In telephone properties and their gross
revenues in 1914 were about S275. O0O. 900.
In the telegraph companies. including
wireless and cable communication.
about s225. .0o0, 900 was invested and the
gross revenues were ss5,oooyooo.
Power Company Earnings.
The wealth tied up in electric light
and power companies Is estimated at
S2,l76, ,0O,O0O. and the gross revenues
Of the companies in 1914 were about
$500, 900 900. In the street and electric
railways about $500 900 is tied up,
1850, 900 600
The money tied UP In gas plants
throughout the country is placed by tie
expert referred to above at 1916, ,0oc 400.
and he estimates the gross revenues
from them at $40 900 900. The valuation
Of the water plants in the many cities of
this country Is placed at 81, coo, 900 900,
| but there Is no sure way of forming
any accurate guess as to their revenues.
Money invested ste ion In ~ steam sa railroads is
revenues are placed at S3,SO), 900 40. The
money actually tied UP In express COM
panies in tangible assets is relatively :
small. being about S2s,ooo,oOo but the
gross earnings in 1914 were estimated at
$l50, 900, 600
Under the classitications adopted by
the Interstate Commerce Commission, /,
the Pullman company Is reckoned as
an interstate public utility corporation.
Its rolling stock Is valued at $l22. 900. 900,
| and its gross revenues were placed for
1914 at S35,00O.oO0.
Some Minor Utilities.
These are the principal public utility
enterprises in this country, but there
are many smaller enterprises which
for example, natural gas plants. whose
total investment is placed at something
like $3.50 1000, and whose gross reve-
nues cannot be estimated. Under a
decision OF the United States Supreme
Court pipe lines are classed as common
carriers by the Interstate Commerce
Commission, and are therefore public
utilities corporations. The valuation oil
these lines is placed at 500 900 900, bu,
no figures are obtainable on their gross
revenues.
Irrigation companies, which play
an important part In the financial
and industrial development of the
ard ar Western ,ns States; have a physical
Then there are also included under the
head of public utilities such enterprises
as cemetery companies. storage and
warehouse companies and elevator
companies, whose wealth Is relatively
unimportant when compared with the
ton systems which form a network
over the surface OF the land:
The gross earnings of 275 public
service corpora tons, not Including
steam railroad companies, whose in
div'dual earnings were more than
siSS'He9 sISS ,eI 20, each. amounted n 1914 to
piled by the Financial World.
Profit to Investors.
Investors have Jared exceedingly well
in these 275 public service companies
for in 1915 they paid dividends to the
extent or $lSS, lS4 064, which was an In
crease of ss.s63,s74. or 6ss per cent
more than the dividends Of 1918. Meas
ured by their par value, the securities
issued by these 275 companies which
are now IN the hands of the public ac-
cording to the Financial World have
now passed the five billion dollar mark
Even in the six months ended Janu.
airy 81, 1915, a period which saw prob
ably the worst Generalization in the
history of corporation earnings. 9
period when railroad and industrial
companies were witnessing daily a de-
, cline in business. the gross operating
revenues of the commercial centra
generating stations have been estimat
ed at $l82. 100000. a figure which com
, pares favorably with the gross earn
ings for the same period in 1918
amounting to $17S, 100000
Another example of the way in which
public utility corporations escaped from
the unfavorable influences which wer
at work in the financial world last yea
is shown by comparison of the gros
earnings of the United States Stee
Corporation, the largest and most rep
resentative industrial corporation, will
those of the Pennsylvania railroad. Tn
Steel earnings decreased 30 per cent
whereas those of the Pennsylvania de
creased only 10 per cent. The gros
| Of he p,b