Evening star., 1923-03-12
HUGE SUMS TO Be
EXPENDED IN HOMES
Public Utility Companies Are
Facing Remarkable Year
in Business Expansion.
BY j. &. ROYLE.
Special Dispatr to The Star.

BY J. c. ROYLE.
Special Dispatch tn The Star
NEW YORK, March 12-At least
three-quarters of a billion dollars
must be spent this year to equip the
new homes of the country with heat.
light transportation and telephone
facilities. This estimate was arrived
at today by combining the figures
compiled by the most reliable author
tiles in the public utility field from all
sections Of the United States.
Nearly o00,o0o,O0O worth Of
homes were built in 1922. The greater
number of these homes were of mod
crate cost and of necessity We're
largely, suburban in location. Terri
torial expansion of cities was unpre-
cedented and this will involve the ex-
tension of sewers and of telephone.
gas, water. electric light and traction
lines as we'll as a heavier load on ex
listing facilities.
Flood of New Patrons.
Hundreds of thousands of home
owners have become prospective pa
irons of every public utility. but the
utility corporations must spend hun
dreds of millions in order to deliver
service to these new customers.
The effect of this condition already
has made itself felt in dozen differ
ent industries. The steel mills are
receiving increased orders for rails
and equipment and are already press
ed to capacity. The electrical equip
ment companies are pressed to the
utmost and prices for wire. conduit.
insulation materials and other ma
terials have had substantial rise
This activity explains in great part
sumption of copper. which has re-
suited in the advance of that metal
to the 17-centa pound level. Powef
and gas plants are carrying heavier
titles of coal and Oil Hydroelectric
development is proceeding at a pace
not equaled in years, and these ne"
projects are providing work for thou'
sands of men.
Thousands Want Phones.
Demand for phones is insistent ana .
many companies are months behind
in installation because of their IN
ability to get sufficient instruments
This explains in part the increase of
the capitalization Of the america
81. 600. 100000 in the last week
Makers of street cars are working At
100 per cent capacity. with orders on
their books which ii Will take months
to MI.
Not only must the public utility
companies spend $150,000,000 to meet
immediate requirements. but lheN
must provide for even more expansion.
for today real estate transactions are
booming and new construction bldS
fair TO be far heavier even than last
year
Before the war. the public utilities
of the country maintained an extra
capacity of about 20 per cent to pro
vide for expansion and as protection
against delays or breakdowns. That
margin has been entirely wiped out.
! The business of the companies have
outerown the plants.
Back Work Will Coct Billion.
The normal expenditures for bet,
| terments. extensions and improve
ments were not made in the postwar
years. and this work has now piled
| up until it is So 2000,00o.O00 behind the
point where it normally should be.
These are the figures accepted by the
select committee on reconstruction
and production of the Senate. There
fore the public utilities of the country
face an expenditure of s2.750,0Q0 600.
before those utilities are back on
pre-war basis.
With those facts in mind; it be
comes increasingly unlikely that
rates for public utilities will decrease
| in 1923. The money for these tre-
| mendous expenditures must be raised
by sale of securities and the, income
| of the companies must not only cover
the actual cost of service. but must
pay interest on this additional financ-
/ ing, as we'll as leave margin for
reserve. depreciation of equipment,
| and accidents.
/, In this connection the American
! Electric Railways Association points
| cut that, taking 1914 as normal, wages
! today are up 81 per cent. materials
are up 1o2 per cent. while fares
/ up 43 per cent.
New England Mills Rushed.
! BOSTON, March IL (SpeciaD I'm
lprovement in industrial conditions in
New England shows no signs OF
slackening in spite of the handicap
| imposed by adverse weather condi-
ltions. Textile mills are all operating
practically in full. The average cot
ton mill has enough orders on It's
hooks to cover capacity operations
conditions prevail in the manufacture
iof woolens. The American Wooden
Company is sold solid until fall. the
Arlington mills are working night
shifts and the Pacific mills have all
1.-THE business they wish TO handle,
$3.OOO.O 900 Project Started.
| ST. PAUL, March IL (SpectaD.-
Twin cities capitalists have organized
! the Valley Railway Transfer Com
pany and announced plans for con-
struction of four miles of track with
| a mile-long bridge over the Missis-
sippi river This track will connect
| with the St Paul road and will serv.
| the new Ford Motor works and other
! industries at the High Dam. The
project involves expenditure of S3,-
! 000,00
| Seek Closer Cuban Trade.
! ATLANTA, March IL tSpeciaD.--
| Now that through package car
\ service has been established between
J Atlanta and Havana. a party OF
manufacturers and wholesalers of the
south plan to leave here April ! to
| foster still closer commercial rela-
| tions with the Cuban merchants. The
| trip will be made under the auspices
| of the bureau of foreign and domes
| tic commerce.