The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1924-07-23

cred capital in the industry.
The perpetuation of high street
car fares and electric light and
gas rates more than eats up the
meager dividends given to
worker Owners"
Ownership of public utilities by
their customers" says P. W. Whiting
of the Cities Service Co., one of the
big Wall Street combines, SIS the
most desirable thing in public utility
operation. It assures goodwill, fairer
valuations and fairer rates" 1t hardly
need be pointed out that the public
utility men he was addressing mean
higher rates by "fairer."
Financier Hurrahs For It.
President L. K. Thorne of Bohbright
& Co., public utility financiers, says:
Customer ownership is proving the
ultimate solution of the problem of
public ownership. The great majority
Of the electric power and light COM
panies as of gas companies as we'll
have instituted sales campaigns to sell
their preferred stocks to the people
whom they serve. These campaigns
have been almost without exception
successful. 1t is estimated that dur
ing 1928, $500, 100000 of securities will
have been sold in this manner as com.
pared with $175,O0O,O0O sold in 1922
and sS0,0O0,OOO in 1921"
100000 Petty Stockholders.
In the American Bankers Assn.
journal B. C. Cobb estimates that Gus
toner ownership had added to public
utility companies over 100000 stock
holders who have invested more than
$500, 100000 up to January l.. 1924.
Customer ownership financing" he
says, sis more and more proving a
boon to these industries by enabling
them to finance extensions and i'm.
provements which would otherwise be
impossible under existing profit re
strictions." In other words persons Of
small income who have been accus
toned to only per cent Of their saw
ings will provide money at per cent
whereas the rich will invest only in
securities which promise a much
higher rate of return.
Cobb cites intangible benefits to the
public utility interests from this Gus
toner ownership program, noting es
pecially that the seeds of discomfort
are finding 1t increasingly difficult to
take root on account of the policy
adopted by the public utility COM
panies"
Big Fellows Get Gravy.
Facts about customer ownership are
worthy of note. The 100000 Gus
toner owners do not own per cent
of the total claimed capitalization Of
utilities, which is over $1S,O0O,0 900, 900.
In the second place costumer owners
get preferred stock Of subsidiary COM
panies while the common stock which
represents owner control is held by
the big holding companies or trusts
In the third place while the customer
owner is getting his meager per cent
these big absentee holding companies
are managing to pile up profits at an
ynual rates ranging as high as s31 on
each 500 invested.
What the customed owner gets in
dividends is more than counterbal
anced by what he loses thru exorbi
tant cost of service. He has been led
blindly to support the high rates which
he must pay and also to help the bis
interests in gouging those consumers
whose low wages precludes the pur
chase of stock.
Real Public Ownership.
How much better is the real divi
dend of Mrs. Housewife OF London
Ont, home Of publicly owned super
power. She uses an average of "A kilo
wat hours, probably cooking, wash
ing, sweeping and ironing by cleo
tricity and pays a monthly bill Of 1874
Prior to public ownership she woul'
have paid s691 for this service. Thu
difference Of s5.57 month OF 1858
a year is her dividend. And It goes Il
all consumers, not TO a privileges
group. There are no absentee owner
of great wealth getting a lions share
c.sd Il. that guhanrln4Inn rad.v