The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1915-04-30

as were made to the Idaho-Oregon
bondholders.
The fifteen million dollars capitali-
zatlon of the holding company, Mr..
Dahl said, was divided approximately
as follows: debenture bonds, four mil
hon dollars; income bonds, four mill
non dollars; common stock, seven mil
lion dollars.
capitalization Reduced.
10 show that the formation of the
merger means putting the power in
dustry on solid financial basis rath-
er than the watering of the stock, Mr..
Dahl told a representative of The
Statesman that the companies to be
taken in now have outstanding stock
and bond obligations in the sum of
forty million dollars.
Merged the capitalization will be
but fifteen million, plus liability of
three million dollars for what are
known as the underlying bonds"
The underlying bonds were the securi-
ties of the Boise & Interurban rail-
way, the Boise Valley railway and the
Boise Railroad company, which were
absorbed by the Idaho Traction COM
pany.
In addition to the seven million
dollars common stock of the holding
company, Mr., Dahl said there is eight
million dollars worth authorized in
addition thereto, but it will not be is
sued unless the company receives full
value for it in property or cash.
Explaining the relative value of the
various securities, Mr.. Dahl used the
figure of speech of the first, second
and third table. He said the deben-
ture bonds went to the first table the
income bonds to the second, and the
common stock to the third, if there
were then any additional earnings to
be divided.
Stock Distribution.
VI the common stock, Mr.. Dahl said
the bondholders would receive ap-
proximately three million dollars. He
said the Electric Bond & Share COM
pany, which is interested in the for
nation OF the merger, will take a
block OF the common stock of the Ma
tional Securities corporation.
Stock Control.
Mr.. Dahl was asked the relation
ship of the General and Westing-
house electric companies to the Ma
tlonal Securities corporation He
said neither of them had anything
to do with it, but that the General
! Electric company owns one-half of
the stock of the Electric Bond &
| Share company.
Captain Davis called Mr.. Dahps
attention to an article which recent
~ appeared in a power technical
journal containing statement to the
effect that the proposed merger was
to include all the power companies
west OF Denver. He replied that the
article was nothing more than a
dream.
He informed the commission, how
ever. that the Electric, Bond IL
Share. company has stock in the Utah
Securities company, which owns all
! the stock of the Utah Power & Light
company. Mr.. Dahl told a represen-
tative of The Statesman, however
that there was not the remotest pos
sibility of the Utah concern being
merged with the Idaho companies. He
told the commission that the present
plans do not contemplate the bring.
ing of any additional concerns.
Rates Subject to Control.
Asked what effect the merging Of
the various companies would have or
rates, Mr.. Dahl said so far as he
could tell now the rates would be un.
changed. Reminding his hearers thai
the rates would at all times be sub.
Iect to regulation by the commission
Mr.. Dahl went on to explain the pur.
poses and hopes of the consolidation
and to give his views as to compe
titlon as against what is generally
called monopoly
Modern thinkers in this field arr
agreed" said Mr.. Dahl, that tn,
public utility business is a natura
monopoly. know of no case il
which competition has proved to b.
of ultimate benefit to the public
Authorities on the question now ad
vocate regulated monopoly as tn,
plan on which such utilities shoulc
be operated to give the public tn
best service at the lowest ultimate
rate. Under the competitive system
temporary reduction is usual,
given, but the advantage is never last
ing.
I'm bringing these various Idaho
companies together we propose to 81
cut down the overhead expenses a.
to make it possible to put the bust
ness on a paying basis and still saw
the public money. 1t is by doing
, large volume of business that thu
industry can be made to pay.
Develop the Field.
: This concern will be large enough
so that it can afford to put into tn,
field corps of experts whose bust
ness, is to find new uses for powe
and make conditions such that it will
be put to more uses than it now is
The great problem in the hydro-elec
trio business is the finding of mar
ket. There is plenty of power here
but the market must be developed.
No Plants to Close.
Mr.. Dahl said, in response to
question from Jess b, Hawley, tina
1.-THE holding company did not expec
to close any of the plants now being
operated.
Going further into the details o
the company's plans, Mr.. Dahl sale
J that when the holding company ha
taken over the securities of all tn,
Idaho companies an operating com
pany will be formed to manage thu