Evening star., 1925-09-24
COMPETITION KEEN
!. IN BUYING UTILITIES
Nationwide Drive Made to
Group Concerns and Cut
- Operating Costs.
BY j. G. ROYLE.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK. September 24.-keen
competition is being waged for the
acquisition of public utilities serving
practically all sections of the United
States. sLarce utility and banking
concerns making headquarters in
New York. Boston. Philadelphia
Chicago. Atlanta. Birmingham and
the Pacific Coast cities are bidding
for individual companies and groups
OF companies which serve communi
ties with electric power, light, gas,
Ice and street car service.
Latest Big Merger.
BY vote of the shareholders. an
nounced today, the Southeastern
Power and Light Co. will consolidate g
with the Southern Power Securities
Corporation. In addition to the Ala
bama Power Co. opera ting near
Muscle Shoals, and serving several
states, the Southeastern Co will con-
troll the Gulf Electric Co. operating
In Alabama and Northern Florida,
and the Mississippi Power Co., serv-
ing communities in that State
The activities of the insult interests
or Chicago. headed by Samuel insult,
president of the Commonwealth Edi-
son Company OF Chicago and the
Chicago Elevated Railway, and Mar
tin j. insult. president of the Middle
West Utilities Company, offer an i'm
mediate example of this trend. These
interests have battled successfully for
wide territory in New England, the
South. Southwest and Mexico. At
present. the Middle West Utilities Co.,
an insult concern, through its hold
inss in other concerns provides serv-
Ice to 1919 communities in 10 States.
Many Merger Reasons.
There are a number of causes for
this picking up" of public utility
holdings. Excellent earnings are an
ticipated for most of the gas. electric
light and power companies through
out the remainder of this year. Active
industrial operations and tremendous
building programs have maintained
demand for service. Outputs for
most companies have been well ahead
of those of previous years. Operating
costs have been fairly stable. AS
result, net earnings have increased
strikingly.
Farsighted public utility men have
seen in this situation chance to in
crease profit further by reducing ex-
penses as a result of consultations
and mergers.
Public Attitude Changed.
More potent than this factor has
been the changed attitude of the pub
lie toward public utility companies.
The laying of cards on the table by
the utility companies has inspired
confidence in consumers. That con-
fdence has been followed TO an ex-
traordinary degree by investment of
customers in the stocks of companies
which serve them. This has been
reflected in the attitude of utility
commissions, which have shown dis
position to permit rates yielding a re-
turn, which, for the country in gen
eral may be placed around per cent
on investment.
New Deal Promises Success.
Moreover, the attitude of the pub
lie has made much more easy the
financing of new utility expansions.
W. S. Murray. one Of the engineers
who investigated the possibilities Of
a gigantic development of power from
the tides of Passa maquoddy Bay, in
Maine, declared today that the prof.
ect would involve expenditure of at
least 100000, 900. and expressed no
doubt that this sum might be raised
ION the basis of usual electric public
utility financing"
The men who are most active in
the bidding for utilities are by no
means oblivious Of the dangers in
volved Samuel insult recently is
sued a warning regarding the advance
of public utilities securities to too
high a point. 1t Is realized that
should profits of the companies eX-
ceed a given point there may be
decided sentiment aroused in favor
of rate reductions.
Copyright. 1881