The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1928-03-30
Private Power Companies Charge
0oubleIPubic Owned Plant Rates
..,.ntinued from page onel

-L- largest of the many private
nenas tns , lp11 organizations IN the
oorer con comp sarves through its own
co9 sIl}bsidiary organizations some no Dr0
and suite, SUITES with an estimated popu'
co9lIllu m 100000. It is itself a SUB
latOn Oh he Standard Gas and Elec-
sidiaTy , y, NV of which we shall have
tic ColI la~ presently. 1t owns TWEEN
more u I t~r!dTo-electric power stations
E- = f+Zxyenat t5s steam stations. ,.oeo,
and I%T%fs to Moody's Manual refer Ter
AccoL tbo total net income for 1926
red 10 ' dompany was $12,755, 622; the
for TINS o o5e1P were $5,338,278, leav-
intefeIt' , Ia for the year Of $7,417,-
B lng q The balance sheet shows as OF
3d. il- 3l 1926, total assets OF
D peg 55s 800; liabilities S215,579,O9o
S-l','- surplus Of 50, 1927.
an ma q s stdck rating of the securities
Ing l;. comnany as given by MOOdy'S
Of uls yanges from "Ba" to "B"
A l!.G i7iicates that they stand about
Tl VI. and Nd next below halfway from
nan bi '. to the lowest in matters Of
the NV The "Ba" rating in the
secu i. of Noody's Manual stand half
TOIuIl O+ween stock investment and
way .ask speculation" The "B' rating
:yao+es that the certainty Of pay
no ort i often in question" The bond
n .t;ng Of the company according TO
IaIlHs authority ranges from "Aa"
lI HI. H. Is next to the highest to "Ba".
T TliiSI latter rating indicates that where
:; t-' annIies the bonds, 70 use the words
~ Moody, "may have acquired a spec
Native tinge."
c,.ndard Gas & Electric Company
''' The Parent
Tho Northern States Power Com
uon nv ike practically all of the pri-
l pah' mower companies operating in the
,onntrv. is closely connected with
.tber and larger private company or
~anizations. 1t is a subsidiary of the
Standard Gas & Electric Company,
which is one of the largest and most
"owprful in the United States. This
Standard Gas & Electric Co. is a Del
aware holding company serving in all
1SS2 communities in II states with a
total population of 100000. 1t OPP
crates in such large and widely scat
tered cities as Pittsburgh, Minneapo-
his. st. Paul, San Francisco, Louis
vile, Oklahoma iCty, Pueblo, Tacoma,
Of al. 1t has services in California,
Oregon, Kentucky, Indiana, Pennsyl-
vania, Arkanas, Oklahoma, Wisconsin,
Illinois, Minnesota, South Dakota,
North Dakota, Wyoming, Colorado,
Montana, Idaho and Washington.
The net earnings of this company
according to Moody in 1926 were $685.
1882. The assets as of December
81, 1926, were $155,820,112, and the
surplus $9,9O7,944. The combined bal
ance sheet of the company for 1926
shows a total asset of $973,859, 1888
and surplus of $49,597, 1888.
This Standard Gas & Electric Co.
controls through its subsidiary organ
izatiOnS the Northern States Power
Co. which in turn controls the Nor
them States Power Co. of Minnesota,
which in turn controls 10 or Is small
er operating companies such as the
Hutchinson Lighting and Mfg. Co.,
The Interstate Light & Power Co., The
Minneapolis General Electric Co. with
its 5 subsidiary companies, the Miss
SSlppi and Rum River Boom Co., The
Northern States Power Co of New
jersey The Northern States Security
Co., The Northern States Power Co
Of Wisconsin which in turn controls
the Chippewa Power Co. of Wisconsin
Inc Chippewa Power & Fibre Co., the
Northern Transit Co., The Unior
Light, Heat & Power Co. and MANY
others.
II. CAPITALIZATION.
As stated above, the practices, poll,
cleS and tendencies as illustrated il
he case OF the Northern States Pow
81 company and its parent company
ire Standard Gas & Electric Co.. arr
gule typical Of the private companie.
IN general.
Holding Companies
rOr example we have here as is very
generally the case with the privat,
power companies throughout the coun
NY ny, tne now famous holding company
H tne apologlsts and propagandists o
we private power interests of tn
t%Tuntry are constantly urging upon u
Iie very great advantage of this ney
ueVlce OF the holding companv in RI
organization O of the corporate inter
S ;S Mr. W. S. Murray, an outstand
ing exponent of the private power IN
S erSS% IN this country, in his recen
SUTA on "Superpower-It's Genesi
s snu future" devotes considerabl
Jpace 70 pointing out the advantage
LIVED from the organization of tn
TpS s"s z, company. More recently still
Gt tUl, VIM " q. Ripley, professor of Pr
S"Tal economy in Harvard Universit
S. MS book on "Main Street and Wa
; Ssreet also points out these adval
tS ees; However, the latter writer, a
EUush recognized authority and or
nr tUwn 10 be entirely friendly to tt
EIvste power interests, goes at SON
f. Ign INTO the dangers and disadval
fS ses OF these companies. Anon
t s'TSe Disadvantages he mentions IL
r~ II;Uwhg: (a) They open the door q
con. ,nilIea corporate extension al
rO O,upleXlty." (b) They facilitate Il
N'"0ehtratlon of control. (c) The