Evening star., 1921-02-19
POTOMAC ELECTRIC
PLANS FOR YEAR
Will Spend ST. zoe, 900 on I'm.
pr0vementS-Future FL
nancing Is in Doubt.

announcement OF planS TO SpeNO
S1.200.000 this year on extensions and
other improvements, coupled with an
expression of doubt as to the COM
pany's ability to go through with
count of financing difficulties. was
made today by officials of the Po-
tomac Electric Power Company.
1t is proposed to install two new
boilers at the Benning power plant. at
a cost of $50, 0,0o9: provide substations
with new rotaries and transformers
at cost of about 100000. and extend
conduits and cables to meet consum :
ers' demands at a cost upward OF hai1
. million dollars.
This is part of a five-million dollar
improvement program planned for the
next three years. but William r.
Ham, president of the company. said
today that the major portion OF the
program might have to be abandoned.
Unless Congress authorizes the pro-
posed merger of the Potomac COM
pany with the Washington Railway
and Electric Company. light and pow
er corporation. he said. will face a
dif,culty in obtaining credit which il
probably will not be able to sur
mount.
New Factor to he Considered.
Mr.. Ham also stated that the Great
Falls power development proposal has
injected a serious factor into the sit
uation. The company will want 10
know what is to be done with this
proposal before undertaking large eX-
penditures for capital improvements
Likewise, the public will want to
know, he pointed out, and this VIII
hurt the marketing of new securi-
ties.
According to it's president, the
company faces the imperative neces-
sity of raising s10,000,000 during the
next three years-s5.OO0.OoO Tor new
financing and s5.000.000 for re-
funding-and as. yet does not kno"
where the money is coming from
Congress, the Public Utilities Com
mission and the public would have
to adopt a policy of constructive CO.
operation if the company Is TO De en-.
abled to establish credit out OF
which it may finance extensions ana
improvements to meet the growing
needs of the city.
Advantages OF Merger.
In explaining the advantages that
would accrue from the suggested
Emerging of the power and railway
properties, Mr.. Ham said the potomac
company now has outstanding three
mortgages. and that it would be uim-
cult to market a fourth one. On the
other hand the railway company has
only a first mortgage on a CONSIDER
able portion of it's property. Were the
interests combined. it is the opinion
of the officials that second mort
gage placed on the railway holdings
would prove an attractive investment
opportunity. as it would be secured
by the properties of both corpora
tions.
the merger. the Potomac company
viii 20 through with as much of the
Improvement program planned for
this year as possible. Next year. with
out a merger or other means pro-
vid.d for establishing credit. there
will be practically a cessation of de-
velopment work, he warned.
Local Securities.
The feature of today's session of the
Washington, Alexandria and Mount
Vernon per cent bonds at 40. There
were no transactions in these bonds
last year, and today's sale was the first
OF 1921. Information as to the last
previous sale and price is not avail
able. That they are Stable at 40 in
dicates that arrangements have been
made to meet interest on the obliGa-
tons.
Washington Gas IS, quiet but strong,
with a sale at 100 y; Capital Traction
IS sold at 81.
Mergenthaler. 121.
Ts Issue More stock.
The application of the Chesapeake
and Potomac Telephone Company to
issue $14.se6.OD0 of stock to retire it's
notes held by the parent company, the
American Telephone and Telegraph
Company. was granted by the Mary
land public service commission. The
stock represents something less than
the fair-value appraisement of the
company's Maryland property as fixed
by the commission.