The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1924-04-11
CHICAGO SUPER
POWER PROFITS
S3S,375,O44 net
$500, 900, 900 1923 Loot
Of Power Monopolies
BY LELAND OLDS.
Federated Press Industrial Editor
Article H.

IN 1873 absorbed about one-third OF
the hundreds Of millions of dollars
paid by consumers for their service,
according TO the annual reports Of
ten of the sixteen combines named
in the first article in thu series. The
gross income of these companies
Tor a single year amounted to $60z,-
] 184,l19 of which only $404. 1884
was necessary to pay for the cost
Of the service The remaining S19s.
6Ol,777 represented clear profit to
the owners.
Such profits which gave common
stockholders returns ranging as
high as $91.10 on each 500 invested
are evidence Of the unwarranted
rates which private monopoly is i'm
posing
insult Combine Got Most.
The insult combine centering
around Chicago overtops nil Others
IN the magnitude of its gross in
come and profit. The four com
panes comprising this group took
IN $l3l ,456,330 during 1923. Of this
III l,675,3 l3, representing 10 IL per-
panles represent the control of
scores of generating plants in Ia
states, Illinois, Indiana, Michigan.
wisconsin, Kentucky, Missouri.
Kansas, Nebraska, Texas. Okla
homa, Vermont, New Hannpshire
and Tennessee. Their profits were
as follows: Commonwealth Edison.
I'll, of5,Sl3, representa- 10 IL per
cent on the par value OF common
stock; Commonwealth Power. Sill
S69,2l4, amounting to $11.55 a share
OF no par value common stock: Pub
lie Service of Northern Illinois
$4,5S0,673, OF, $15.22 per 500 share.
and Midwest Utilities, S11.449.a44
giving common stockholders 1924
on each 500 of investment.
Over a Per Cent Without Risk.
Public Service Corporation Of
New Jersey, controlling all the NH
he utilities in the larger cities Of
That state, received gross income
OF $79,lo7, 1872 during 1923, Of which
profits absorbed $2O,121, i22. This
left common stockholders a profit Of
$3.50 a share. AS each share of no
par value represents an investment
of approximately $50 the return is
equivalent to $11.38 on 500.
Consolidated Gas Company of New
York, which swallowed IN New
York Edison and other electric
light properties in certain suburbs.
received gross income Of S123
TAI 1898 during 1923. Of this S35.-
sO8,770 was clear profit. This meant
profit of S7.77 on each $50 share
of common stock, more than 1873
per cent.
Some Pickings.
North American Company made
profit of S27,176,069 on a gross bust
ness of $75,465,265. It's profit ap-
pears as a return of only S9.1f a
share but the company recently is
sued five shares of $40 stock in ex-
change for each $50 share formerly
held by stockholders. Thus this
years profits means return of
$S1.10 on each 500 invested. North
American controls utilities in the
most important industrial centers of
Wisconsin, Missouri and Ohio.
The % public utility companies
in all parts of the country operated
by Stone & Webster made a profit
of 7.155.956 on a gross business
of SAC, 1853, 428. American Water
Works and Electric, forming the
nucleus of snper-power in Pennsyl-
vania, made profit of $14,066,361
on gross business of $34,066,361.
giving common stockholders 1929
share.
What Pacific Gas Got.
Pacific Gas and Electric control
ing the majority of utilities in
Northern California. made profit
of $16.478.332 on business of $780,
971 TAB, giving common stockholders
S10.24 share. Southern California
Edison made profir of Sill 800 ,06s
on business of $20.545,4 $50. allow
ing common stockholders $3.50
share.
Detroit Edison and Brooklyn Edi-
son reported profits of $3.50, 726
and $7,670,329. giving their common
stockholders S11.s3 and $1307
share.
Injunetions Back Profits.
The rate of profits in some In
stances might not be considered ex-
cessive in speculative industry
But under the present rarc making
theory which is enforced by the
courts the common stock of these
big utilities is no more speculative
than an A No. bond. IL state
commissions attempt to reduce rates
below level which will rive the
public utilities so-called fair re-
turn on their inflated valuations
they are promptly stopped by court
Injunction on the ground that such
rates arc conhscatory.
As result It will lie impossible
for consumers to escape ,inneces-
sarily high electricity and gas rates
as long as the doctrine OF private
ownership is applied to public
utilities.
tThe people Of Ontario, Can,
found this out and shifted 10 public
ownership Of super-power. The
result will be described in the next
nrticle.)