Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1922-07-04
OUTLINES PLANS
AND PROGRESS OF
THE c. N. P, co,

" INC stockholders:
io the Stockholders of the Contra,
Maine Power Company:
nave felt it to be Desirable .,
write to you cnce or twice each year
SWING you. In an informal way. an
,oea OK the progress Of the companv,s
business and its plans for the future
"hHe the company has been operat.
ing curing the past six months under
conditions different from those which
were anticipated at the beginning of
the year, feel that its business ;s
satisfactory and that it is steadily
demonstrating it's ability to cope with
the demands COR power in the territory
which 1t serves.
During the rast IL months the com
paEy mas successfully absorbed the
very considerable increase in its fixed
charges entailed by the expensive
transmission program which was car
rled on for two years prior to 1922.
ana has done this even in the face of
extreme low water conditions lasting
Tor a little more than six months.
we nave now right to expect at
least average water conditions for the
NEXT II months, and according to the
most careful estimates which I have
! been able to make, our net earnings
! shouio continually increase and 1 be-
| heve after this period will show net
earnings Of over 100000 above oper-
ating expenses, depreciation and pre-
ferred stock dividends.
! we are developing plan which has
oeen under consideration for some time
| and which we believe, If it is adopted
anu II the people in the different towns
Wnich we serve lend it their enthusiast
TIC cooHeration, will result in a sub
staatial increase in the industrial ac-
t1v'ty and resulting il crease in pom
ula''on and Prosperity throughout the
territory. This plan will be announced
at fairly early date and believe
It means great deal 10 tie State.
Fixed Charges and Low Water
During the two-year period prior to
october l, 1921, the Central Maine
Rover Co. spent great deal of money
| IN building a water power plant at
'Skowhegan, in adding to it's steam
liant, extending it's transmission faciI-
| titles and connecting up new custom
| ers.
While this construction work was
| going on, and most of it was of such a
character that the construction period
was fairly long, the interest and taxes
on the uncomplcted work were charged
to constructi'. l.. and did not enter into
| tn operating renses of the company.
| AS fast as this property was COM
pleted the fixed charges had to be
| taken care of by operating income.
Tho great bulk Of the property was
tur.sed over Il the { ting depa =
inert in the early part of 1921 Thu
! fixed charges, including taxes thus i'm
| posed on the company, amounted to
nearly 100000. General business con-
dition. in this tcrritor.- were not Iar-
| ticularly good through the spring and
summer of H. with a result that a
, great deal the energy which tn !
new property was capable of supplying
! was unsold. By the time that business
| picked up the latter .onths of t 2
| year all our water power plants began
/ to feel the effects of an extreme
Dire ught and it became necessary to
make great deal of energy from
steam. This factor alone added about
| $3.50 900 to our operating expenses dur
ing the fall and winter of 1922.
This condition was not relieved until
about the middle of March, 1922.
The combination of these various
factors resulted in bringing the earn
ings of the company available for sur
plus account TO a low cbb for the year
ending April 80, 1922, but at the same
time the gross earnings and operating
expenses indicate that in year of aV-
eragc water with our present connect
cd business the company has an ability
not only to earn 100000 or more for
the surplus account but to very sub
stantially increase that amount as fast
as additional business is available.
In comparing our earnings with
those of other New England companies
it should be borne in mind that the net
amount available for common stock
dividends in the case Of any company
which is carrying on an active program
Of extension and charging of its busi-
ness must nece ssarily vary consider
ably from year to year. depending
largely on whether 1t is at the begin
ming of some particularly important
ster in such program or at the end
of it.
1t should also be borne in mind that
the Central Maine Power Company has
not in the pas. and is not now seeking
to get all the dollars that 1t can Tor
the least possible service rendered, but
is rather making every effort to give
thu best service possible for every dol
lar that it receives.
This involves a constant effort on
the part of the company to extend Its
service, to develop surplus power and
to meet all industrial plans which
come along in such way as to &C
complish the best result for the COM
munities in which it does business.
We feel tina. our company Is in
vastly stronger position that 1t would
be if it had stood still and not met
the power demands of the communities
which it serves. even If such course
had resulted in higher net earnings.
We believe that the important thing
for the present generation and for the
future is to develop our Maine re-
sources as rapidly as possible.
Plans for Industrial Growth in Our
Territory
Ii is not the plan of this company
10 mark time aud merely take on BUSH
ness that drifts its way. We are
working out comprehensive plan
which we hopa will enable us to de-