The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1919-06-25

1.-THE durable character of the
utilities has again been empha-
sized by the vicissitudes which
they overcame during the war,
and it is already being reflected
in the upward market trend Of
their securities. Generally speak
ing, sensational advances in the
price of their securities are not
to be anticipated, but in all prob
abilities there viii be a steady
climb back to and exceeding the
top levers existing before the war
and in 1916.
"a widespread, active con-
struction period win hardly get
under way in 1919, but next year
should see unprecedented build
ing. particularly of electric
transmission lines. water powers
and steam turbine power sta
ions. Prices of money and ma
terials are stilI too high to per-
NIT the construction of any ex-
cept the most necessary opera
lions. No conservative utility
operator will do any more fi-
nancing at the existing high in
terest rate than he has to, nor
viii he buy machinery. wire, etc.
for permanent construction un-
til prices are much reduced, If
it can be avoided.
"a times OF wonderful expan-
sion in the electric industry cam
not be long postponed, however.
II the United States is to con-
tinue its course OF Industrial
prosperity. The war brought
to the foreground the depend
ence of modern production upon
mechanical power and the SUI
periority and economy of cleo
trfcal power produced by large
central stations. Every power
company in a manufacturing
district was seriously pressed to
supply additional industrial de-
mands during the war. and it is
safe to say that nearly all of the
new business gained, or its equiv
alent, will be permanently re-
tanned and the demands for
electrical power will continue to
grow with every factory expan-
sion and the establishment Of
every new industry"
This statement seems to sum
up the situation very well. Per-
haps the price of public utility
securities will exceed the top
levels existing before the war and
in 1916" though / venture to say
no one would care to predict
just when that happy state OF at
fairs will come about. The fact
remains that public utilities are
down and should go UP, and 1t
can hardly be questioned that a
wonderful expansion in the
electrical industry cannot be long
postponed" In water power re-
sources, for instances, the Unit
ed States has been bountifully
blessed by Nature as compared
with many of the other nations
of the earth. In all Europe there
is but seven millions of horse
power. with potential of forty
millions. In this country our de-
ve1opment is now somewhere be-
tween eleven and twelve millions
and we have a potential OF sixty
When we see pictures of the
great dams-lilze the Roosevelt
Dam in Arizona, for instance.
which is 2S4 feet high aid 1880
feet long built to store up wa
ter and create power from IL,
we realize what wonderful feats
have been accomplished. Then
stop and think that only one
sixth of our water power re-
sources are developed. There are
great possibilities ahead, and
public utilities are by no means
limited to water for their cur
rent-making power.
The industrial development Of
the country is closely allied with
the growth of public utilities.
They go along, side by side Pub
lie utilities are of comparatively
recent origin, and IL may be for
that reason that their securities
have been overlooked by many
investors. They are being look
ed upon with more general favor
as time goes on, however, and
il win repay any one with avail
able funds to investigate them.
Their prospects look bright, and
the fact that they are selling at
low prices now many only mean
that the possibility Of future adj
vances is that much greater.