The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1922-07-28
6PER CENT INVESTMENT.
GOLD BONDS TO THE AMOUNT OF
$25O,OOO TO Be ISSUED BY GONSOLI-
DATED PUBLIC UTILITIES COMPANY OF
WESTMIhSTER-M0NEY TO Be USED
TO IMPROVE POWER PLANTS.

TO IMPROVE POWER PLANTS.
The Public Service Commission Of
/ Maryland had a hearing on July 18th
| in the Munsey Building in the matter
of the application of the Consolidated
/ Public Utilities Company of Westmln-
/ ster for an order authorizing the is
/ sue of $250,000 of its First Refunding
and General Mortgage SO Gold
/ Bonds, Series A In order to provide
| for the payment as they fall due OF
the outstanding issues of bonds of
the Consolidated Company and for the
refunding of the debts of the Company
incurred in the extensive improve
ments made since 1908, and to provide
for immediate expenditures neces-
sary to increase its gas, water and
electric power facilities: and to pro-
vide for the bettermentS and contlng-
encies of service for the next forty
years, the Consolidated Companys
stockholders recently authorized a
bond issue of 100000. and of this
amount $135, 900 in bonds are reserved
to take care of the outstanding bonds
of the Company as they severally
come due These are 100000 of the
Electric Light Company, maturing
July LIST, 1924; 1000 of the West
minister Water Company, maturing
February LIST, 1892: 100000 of the
Company CGas issue). maturing DC
tober 18th. 1898; and 100000 of the
Citizens Water and Power Company.
ION aUCrpC9t-
ing $135 900. but in reality represent
ing a debt of $12S,O00 as the Company
holds in its treasury $1,000 of the
bonds of the Westminster Water
Company. The bonded Indebtedness
IS, therefore. actually increased only
70 the extent of $365,000, and this
amount is expected to provide for the
needs of the Company during a period
Of forty years. and none of the bonds
can be issued except upon application
70 the Public Service Commission and
its approval, after a public hearing.
1t has become the practice OF public
service corporations to authorize an
issue of bonds sufficient to provide for
their necessities during a long period
of years This method saves a great
deal of expense by avoiding more fire.
uuent mortgages and bond issues, and
does not affect the security OF the
bonds as none can be issued except
after investigation and prior approval
of the Public Service Commission and
for property actually acquired.
In the present instance the ConSoli-
dated Company required an issue OF
1925 900 to cover its expenditures in
the near future and to refund or dis
charge its present debts for additions
to the plants. OF this S225.0O0 an i'm
mediate issue of 1927 900 is required
for the purpose of paving off the OBJ
LEGATIONS made in late years for the
Improvement at the gas, electric and
water plants. and to provide work
ing capital. For additional and larger
gas mains. another electric unit, and
betterments at the water plants
an outlay of $6S.000 must he made as
soon as the material can be obtained
In 1924. another $4,000 will be re-
uuired to pay the Electric Light bonds,
leaving $35 900 of the issue of S225,OOO
to take care of further outlay at later
periods.
The Company will only issue at once
1927. 600 of the bonds, which are a
lien on all the property and franchises
of the Company. The bonds are each
for $500. bearing interest from July
18th. 1922. at SCI. PAYABLE January 10
and July Is. in each year. and the
principal payable July 18th, 1862, but
redeemable at par and interest at any
interest period after July 18th. 1927.
The Public Service Corporation sent
Mr.. F. S. Kemp, its Field Auditor, to
Westminster in advance of the hear
ing to examine the books of the Com
panv and verify the statements and
figures. He made his report, and tes-
tilted at the hearing, and the Public
Service Commission authorized the
issue of bonds to the extent of $780,
600. subject to its supervision and
control
The Advocate is informed by the
Company that the lithographing OF the
bonds will delay their delivery until
about the first week in August. but
that any one wishing to make an in
vestment in the bonds NAV leave his
name and the amount of bonds de-
sired with either the Company or the
Westminster Deposit and Trust Com
pany. -.
The Company will begin its i'm
movements as soon as conditions per-
nit, and reports that increased con-
sumption is the reason for the pro-
posed expenditures.