Republican farmer., 1919-12-26
PUBLIC SERVICE
 OF N. J. PASSES
 COMMON DIVIDEND

Public Service Corporation of New Jersey passed the regular quarterly dividend at 1 1-2 per cent on the common stock. The regular quarter ly dividend of per cent. on the preferred was declared payable, Dec. 51 to stock of record.
 FoIloWing a meeting of the direc- tors of Public Service Corporation of New Jersey held last Tuesday when the regular quarterly dividend of 1 1-2 per cent. on the common stock was passed, President Thomas N. Mo Carter issued this statement:
 Tn view of the difficulties which the gas company and the railway company, two of the corporation's 8 three principal subsidiaries, have en- countered during the current year, in endeavoring to meet the vastly in creased costs of labor and material under insufficient rates, and espe- cially in view of the loss sustained by the railway company in the zone experiment. amounting to approxi- nately $1,50o,0OO now happily con- cluded, the board of directors of the corporation, after a, full consideration of the facts, has thought it prudent to omit the declaration of what would have been, under normal con- ditions, the last quarterly dividend upon it's common stock for the cur rent year. This is thought wise as well from the standpoint of the con- servation of cash resources, as from a consideration of the earnings state ment.
 The corporation looks forward to the new year and to the future with confidence. The electric company and the gas company, with their ex-
 
 lair conditions and the railway com pany under present costs, with the seven-cent fare, should be self-sup- porting; that is to say, able to pay it's operating expenses, including deDre- citation and fixed charges. The val uation of the railway property de- voted to the public use is nearing completion by the Public Utilities Commission and early in the coming year a. permanent rate should be es- tabliahed, based on the law and the evidence in the case; the result of which should be to enable the cor poration to earn a fair measure of return upon it's large investment rep resented by the stock Of the railway company"
 Action Of directors of Public Ser vice Corporation of New Jersey in passing the dividend on the common stock should materially strengthen the position of the general mortgage 5s of the company, of which there are $36,0o0,000 outstanding. The 5s have been selling around so, while sales of the common stock made last week ranged between 65 and 69 7-s.
 The common stock has been on a per cent. annual basis during 1918 and the current year. There is $29,- 999,600 of the common stock out standing. Dividend requirements on the stock at the rate of s per cent. amount to $1,799,976 annually, al- most equalins the $1,8000OO required for a full years interest on '-e 5s
 For the fiscal year ended December 31, 1918, Public Service Corporation showed slightly more than s per cent. earned on the common. The com pany derives it's revenue from earn ings of subsidiary companies. The Pubic Service Gas Co. and The Pub lie Service Railway Co.,, The Public Service Gas Co. and The Public Ser vice Electric Co. Numerous smaller operating companies are controlled by these subsidiaries. It is not expected that this years showing of the sub sidiary companies will equal that of last year, consequently reducing the return to the parent company.
 While the electric company has been a fair earner in the face of ad- verse circumstances, the traction company has lost heavily during the year. For the month of October the traction properties showed a deficit of S305,6 from operations com pared with a surplus of $54.S22 for the corresponding period of 1918 For the ten-month period to October 31, 1919, the traction companies will probably show a deficit in the neigh borhood of s305, 900. Officials of the company ascribe the poor showing of the railway chiefly to the installation Of the zone system. which was tried out by the company for a period of six weeks. President McCarter esti- mates that this cost the company around s1,500,000. A straight seven cent fare is now being charged which it is estimated will yield sufficient revenue to enable the traction com pany to pay all fixed charges and have a, slight margin left over.
 The gas properties have suffered, but not to the extent that the trac- ton properties have.