Norwich bulletin., 1919-06-06
WESTERLY

There has been long continued agi- tation, public talk. and lots of it. against the alleged excessive rates for electricity in Westerly, which was carried to the extent of the town council taking the preliminary step for the establishment of town owned plant. In the interim. an electric ex- pert was engaged at an expense of nearly $1200 to investigate the affairs of the Narraganset Electric Lighting comany, as to the charges for service made by one of it's subsidiaries, The Westerly Light and Power company. This resulted in a reduction from II to cents per killowatt hour, and brought satisfaction, for the time be- ing, at least. Wednesday of the pres ent week. The Narraganset Electric Lighting company sent to customers circular which gives a plan whereby the customers. who are not already stockholders, may purchase stocks, not exceeding five shares each of it's capital stock at $66 a share. This of fer is not only to the customers of the Narragansett company, but also to all the subsidiary concerns, such as the Westerly Light and Power company.
 The plan is to increase the number of small stockholders, and to that end the company has bought, from time to time, such lots of the stock as could be picked up in market at $66. It is proposed to sell to customers for cash or by installments at this same price, without commission or interest. At present the company has 5000 stockholders and 29,000 customers. and It is desired to largely increase the ratio of stockholders.
 The circular says:
 If you are a customer of this company, or one of it's subsidiary companies, and do not own any of it's capital stock, you now have an op- portunity to purchase stock on the partial payment plan.
 The management believes it would ho mutually beneficial for the com munity and the company, if it's stock could be widely distributed among it's customers. To this end, the company has purchased several hundred shares of its stock, and offers these at cost, to those customers of tho company only who are not already stockhold eis, on tbe following plan:
 Applications will be taken until the supply is exhausted. and allotments will be made strictly in order of their receipt. Only those who appear on the books of the company. or it's subsid- iary companies, as customers, and who are not already stockholders, will be allowed to purchase this stock. No applications will be accepted for more than five (5) shares.
 The price is S66 per share, payable in cash, or equal quarterly payments, beginning July l, 1919; interest at the rate of per cent. per annum will be allowed on installments. Pur- chasers will share in any rights ac- cruinS 10 the stock during the partial payment period. The purchaser may, at any time, receive his certificate upon the payment of the balance due. and the adjustment of interest and dividends.
 "The company was incorporated ip 1884. During the 34 years of it's ex- istence, it has an uninterrupted divi- dcnd record of per cent per an- mum. Stock at the offering price yields per cent on the investment. with out considering additional rights, which may accrue, and is also free from tax in Rhode Island. Ninety per cent. of the entire capital stock is now owned by residents of the terri tory served by the company As only a limited number of shares is avail able. should you desire to take ad- vantage of this offer, you are advised to do so at once"
 The company has, as the circular shows, made an offer to customers who are not stockholders, giving them the opportunity to acquire stock on easy terms below the market price. lt is the opinion of brokers who are in touch with the market that this offer will meet with very ready re- sponse. The wide distribution of United States Liberty bonds has ere ated a large number of new security buyers.
 The amount of stock available un- der this offer is not stated, but it is said 10 be doubtful If a block of sub. stantial size could be purchased in the open market at less than $70 a share or & a share higher than the com pany's price. Inquiry among the brokers shows that there are very few selling orders on their books
 This plan has been followed with great success in other cities. A con- siderable amount of the stock of the Electric Light company of Baltimore was held abroad before the war, and was sent back to this country to be sold at the opening of the war The Baltimore company made an offer similar to the one how made by the Narragansett, with the result that several thousand customers of the company became stockholders, and all