San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-03-12
new HOMES
| CAUSE BOOM
IN INDUSTRY
Fight, Transportation and
Telephone Companies
Must Build.
HANY NEW PATRONS
companies Two Billions Be-
hind in Improvement
Construction.
lANY NEW PATRONS
BY ], c. ROYLE.

pyrie;s by The San Antonio Light.
New York. March 12.-At least
|ree quarters of a billion dollars
ust be spent this year to equip the
w homes of the country with heat,
INIT, transportation and telephone
tailities. This estimate was arrived
fyday by combining the figures
implied by the most reliable .authori-
rs in the public utility field from
sections of the United States.
4 Nearly three billion dollars worth
homes were built in 1922. The
ev-er number OF these homes were
Moderate cost and of necessity
ire largely suburban in location.
krritorial expansion of cities was
Iprccedented and this will involve
r extension of sewers and of tele-
one, gas, water, electric light and
action lines as well as heavier load
existing facilities.
Flood Of New Patrons.
Hundreds OF thousands of home
rneis have become prospective
irons OF every public utility. but
utility corporations must spend
ndreds of millions in order to de-
Fer service TO these new customers.
Thej effect Of this condition has al
|hdy made itself felt in a dozen diff
tent industries. The steel mills are
,eiving increased orders for rails
Id equipment and arc already
essed to capacity. The electrical
|uipmcnt companies are pressed TO
r utmcsc and prices for wire. con
Hit. insulation materials aid other
hterials have had a substantial rise.
Rise Forced in Materials.
This activity explains in great part
!. unprecedented buying and con-
mption of copper which has resulted
the advance of that metal to The
cents pound level. Power and gas
hints are carrying heavier burdens
d using increasing quantities OF
al and oil. Hydro-electric develop
INT is proceeding at a pace not
Iualled in years and these new pro-
Is. are providing work Tor thousands
men.
iDemand for telephones is insistent
ID many companies are months be-
hid in Installation because of their
ability to get sufficient instruments.
his explains in part the increase
the capitalization OF the American
telephone 4 Telegraph company 10
e billion dollars in the last week.
lsys of street cars are working Al
III Ter cent capacity with orders Oh
hir books which it will take months
fill.
mot only must the public utility
mpani2s spend S1JU,6C,OOo 20
bet immediate requirements, but
ey must provide for even more ex-
|nsion for real estate transactions
e booming and new construction
BIS fair to be far heavier even than
st year.
Back Work to Cost Two Billions.
Before the war, the public utilities
the country maintained an extra
pacity OF about % per cent TO pro-
de for expansion and as protection
Iainst delays or breakdowns. That
hrgine has been entirely wiped out,
be business of the companies has
tgrown the plants
The normal expenditures for better
ents, expansions and Improvements
ere nat made in the post war years
Id this work has now piled up until
is $1,000, OOO.0 900 behind the point
here it normally should be. These
e the figures accepted by he select
mmIttee. Of reconstruction and pro-
Lotion OF the Senate. Therefore the
|blic utilities of the country face
expenditure OF S2,7J0,OO0,OO0 be-
re those utilities are back on pre-
hr basis.
decrease in Rates Unlikely.
with those facts in mind it be-
mes increasingly unlikely that rates
public utilities will decrease in
23. The money for these trenen-
us expenditures must be raised by
lie Of securities and the income Of
e. companies must not only c3ver
e actual cost of service but pust
~ interest on its additional fiIianc-
x as well as leave a margin or re-
five. depreciation OF equipment and
&cidepts,
In this connection the American
ectric Railways Association points
t that fixing 1914 as normal, wages
day are up 81 per cent. materials
ssifT 102 per cent while fares are