New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-06-24
Expansion Aids
Coast Utility to
Increase Earnings
Pacific Gas & Electric Has
1888 Per Cent Available
for Common Stock After
Payment of All Charges

The Pacific Gas and Electric Com
pany earned BATS, 900 in 1920, an in
crease of S8,537 900 over 1919, and OPP
Grated at q TIA per cent ratio OF ex
penses to gross earnings. There was
a gain of 48,741 customers during the
year, of which 3o,413 were customers
using electricity. Net earnings from
operation were $11 ,o25,o00, an increase
of S1,336,oo0, and after the payment
OF interest, bond discount and the
charging off of S2,7sS,0Oo reserves for
depreciation there was 1920, 900 avail
able for dividends. After the pay
ment of the regular per cent divi-
stock there was $2,142, 900 for the COM
mon, or the equivalent of 1888 q
share.
The Pacific Gas and Electric Com
pany does an electric, gas, water, street
railway and steam power generating
business. OF its total 34,4T5 900 sales
in 1920, 62.5 per cent was electric bust
ness, 32.4 per cent gas business, 10
per cent water business, % per cent
street railway and l per cent steam
sales.
The company came into being
thirteen years ago as the result of a
merger, and in every single one of
these years there has been an increase
of business compared with the previ-
Gus year. In the period from 1906 to
1920 inclusive gross earnings have
amounted to s266,72O,ooo. After the
payment of operating expenses, main
tenance and making charges for re-
serves and the payment OF taxes there
was total of SIZE, 1000 available
for interest charges, dividends, etc.
Of this total--about half-S54 ,S26, 900
was paid out in interest, leaving $61,-
600 as profit fer the stockholders.
From this, however, a total of only
$20,2S3 GOO was paid out in cash divi-
bends and $11 ,766, 900 was used to retire
bonds. This retirement of bonds out
of net income is particularly note
worthy as indicative of the character
Of the financial management. There
was S13,595, 600 reinvested in the prop
erty and S14,610,000 spent for replace
ment and rehabilitation.
The following table shows the prin-
cipal figures of the income account Of
1920 compared with 1919:
Gross op. revenues. .ss4 475.s72 s25,93s,s 72
opgratlng sssa9s lsss ass
Net earnings from OPP.
and misc. income. 11,95S.235 10.333.5s1
Interest ...... 4,920,4 36 4,2S5,c57
Reserve for deprecia. 2,788,302 $500, 900
Preferred dividends. 1,777,933 1,52s,961
Common dividends. 1,b0o.S46 1,70S,o95
Surplus ..s......... d41,1S0 lo3,2s7
The certified balance sheet as Of De-
cember 81, 1920, shows plant and prop
critics carried at valuation of $164,-
$4,000. The funded debt Of the COM
pany on December 81, 1920, was $685.
5000. Since then there has been an
additional ten million dollars in notes
issued. Substracting the total funded
debt, current liabilities and the face
value of the preferred stock from the
valuation of the plant and properties,
investments and current assets leaves
$4,000, 900 for the common stock, of
which there is S34,004,000 outstanding.
While the earning power OF public
utility or railroad is of primary i'm
portance in judging of common stock
values, nevertheless it is interesting to
see how we'll the Pacific Gas and Elec-
trio stock shows up on an assets val
uation basis.
The Pacific Gas and Electric Com
pany is now the second largest gas and
electric company in the United States.
The Commonwealth Edison at Chicago
is the largest. The Pacific Gas prop
critics extend from the Oregon quarter
to more than 100 miles south of San
Francisco. Since 1906 the actual cash
expenditures on construction have
totaled 57,934,000