The Republican., 1925-08-13
S175,OO0,000 CHAIN OF
POWER COMPANIES MERGE
Associated Gas and Electric Ar
ranges to Take Over The
Penn Public Service.


OF power properties since the power
inter-connection movement got its
first real impetus several years ago
has been arranged between the AS
sociated Gas and Electric Corpora
ton. The Associated Company will
acquire for cash, with an exchange of
securities optional, the entire group of
the Pennsylvania Electric Corpora
ton, controlled by H. D. Walbridge
and associates, and known as the Penn
Public System.
With the Associated properties in
Western New York and the Pennsyl-
vania Electric properties in Western
Pennsylvania and Maryland, the con-
solldation brings together public util-
lty groupes having aggregate assets
of more than S175,OOO,0OO and pro-
vides chain of power properties con-
nected all the way from the zone of
Niagara Falls to and including the
Western part of Maryland through
fennSyVanla SouthWard.
This deal, which is understood to in
volve cash transaction of about S20,-
100000 for common and preferred
stock of the Pennsylvania Electric
Corporation, represents the largest
yet undertaken by the Associated Gas
and Electric Company, and is one of
the most extensive power merger un-
dertakings ever arranged by New
York company. The effect is to Gre
ate a new system of electric and gas
properties serving and estimated
population of 100000 or more, and
having 100000 consumers in 900 COM
munities of New York, Massachusetts,,
Connecticut, Vermont, New Hamp-
shire, Maine, Kentucky, Tennessee,
Pennsylvania, Maryland and the
Philippine Islands. Hydroelectric and
steam stations of both companies
have over 325,OOO horsepower, ms
,Saiied capacity, and $500 miles of
Agh-tension transmission lines.
- The Penn Public System
The Pennsylvania Electric Corpora
ton is one of the most compact and
highly developed electric properties
in the East. It's Penn Public System
serves an area one-siXth of the State
Of Pennsylvania, extending the full
width of the State from Erie, on the
north, down through Meadville, War
rem, Clarion, Du Bois, Clearfeld,
Phillipsburg, Indiana, Johnstwon, to
Somerset on the south and over the
border into Maryland, where one of
the large hydroelectric stations is
located. This system serves more
than $50 communities with a total
estimated popuation of $4,000.
The discontinuance of the produc-
tion of large quantities of energy in
the smaller plants and the increased
production of the large generating
stations which are now being brought
about, will effect, it is estimated, a
saving of 81, 100000 year in the cost
Of generating power.
Features of the property acquired
include a system of large dams and
storage reservoirs, making possible a
uniform power supply throughout the
year. The company, through a sub
sidiary, owns five coal mines contain
ing over 16,000,000 tons of coal and
has under lease 100000 ADDITIONAL
tons. From the standpoint of power
economics, therefore, it is believed
that the tie-up with the associated
properties contiguous to it is an
operation of major Importance in the
countrywide power interconnection
scheme which has found favor with
the national authorities.
Annual sales of electricity increas-
ed over nine times between 1912 and
1924, from 25,OOO,OOO kilowatt hours
to 236,000,000 kilowatt hours. The
number of electric customers increas-
ed more than five times in the same
pSIlOu5 Ii Olh 1C,OOO "
$4,000, whereas the number of miles
of transmission lines increased more
than twenty-four times, or from 40
miles to more than 1900 miles. Stock
holders increased fifteen times, from
around 600 in 1919 to nearly 5000 in
1924. H. D. Walbridge is Chairman
Of the Board of Directors of the
pennsylvania Electric Corporation
F. T. Hepburn is president.
The Associated Gas and Electric
Company is headed by J. l. Mango as
president. He is also vice president
of the ]. G. White Management Cor
poration. The latter manages the
properties of the Associated Gas and
Electric System, including the Manila
Electric Corporation.
The acquisition of the Associated
Company, except for the Manila prop
critics, have largely been confined to
the smaller urban and rural commu-
mites. On January l, 1922, the stat