Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-02-09
UTILITIES GROWTH
DECLARED STEADY
Further Expansion of indus
try Forecast by Head
of Large Concern.
BY JOHN r. SINCLAIR.
pecial Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK. February s.-John ].
O'Brien, wide-awake president Of H. M.
Byllesby g. Co. Of Chicago, thinks that
more attention will soon be given by
the public and the lawmakers to the
sharply increasing degree of COMPETE
ton which is springing up between gas
and electric utilities.
The great strides made in steam and
internal combustion machines, due to
their higher efficiency. will offer in
creasing competition to the extension
OF power. Just now cheap coal and
oil prices, caused by overproduction,
makes an unusual situation.
Neither does this utility leader believe
that utilities are approaching any over
extension or overproduction.
THE facts point to the contrary.
And this Is why expansion will continue
on q reasonable earning basis" Mr..
O'Brien says.
Cheaper gas pipe manufacture has
had lot to do with it, too. That's
where l.. r. Smith Of Milwaukee comes
into the picture.
Automatic Production.
L. r. Smith, As, president of the A.
o. Smith Corporation of Milwaukee.
was employing 1900 men when he
began to develop his now famous auto
matte machines
His original purpose was ito build
plant to run without men," He spent
flve years time and $4,000, 900 on the
chance that his automobile frame plant
would run. 1t did and it was not long
before the company was making, In
Milwaukee, large part of the auto
mobile frames used by General Motors
and several others, which were sold
at a price far lower than the COM
panles could make the frames In their
own factories.
I'VE started out to build 1890 frames
with 100 men. This was our objective.
We know now that we can build 5000
frames with 100 men," said Mr. Smith.
1t wasn't boast. He was stating
plain fact of scientific interest.
Enter the factory, see 1t humming
with life, every piece of machinery
delicately attuned to every other-and
hardly a worker to be seen.
With his automatic frame machinery
perfected, Mr.. Smith tackled another.
In four months from the time he con-
ceived the idea of manufacturing gas
pipe he had his automatic gas pipe
factory going. Today. after two years
in the business, he sells more gas pipe
than all the rest of the steel companies
of the United States combined.
Last year we did $60,00O,O0O gross
business, made $7,5000O0 and paid
100000 in dividends" said Mr.. Smith.
But we did it with 400 engineers and
eight statesmen. Orthodox business re-
verses the process. We believe success
full American business in the future will
follow scientific research rather than
high-powered sales methods to sell
goods"
This practical dreamer has other far
reaching plans in mind, soon to be an
nounced. He has only started. He is
young. He has visions of what Ameri-
can ndustry-automatiZe do in
the future.
One of the finest engineering re-
search departments in America Is be-
ing built at his plant. He believes in 1t
because it has made him what he is
one Of the most prosperous and inn
portant business leaders in the country.
Huge OIL Dome. Z.
One of the largest oil domes in the
United States is near Fresno, Calf
1t Is called Kettleman Hills, an area
about miles long and n miles wide.
The Standard Oil Co. of California
owns about so per cent of the field,
the United States about 40 per cent, and
the rest Is held by various companies
and individuals. Oil production there
is shut into about $4,000 barrels a
day by an operators agreement, which
expires on July /, 1881. But there
are many rumblings among the small
owners that they are being unlawfully
squeezed out.
Should the operators agreement fail,
Secretary of Commerce Wilbur has de-
clared that $1,000 .000O 900 in resources
will be wasted. and the American mar
ket demoralized by the unlimited pro-
duction of this field, which biologists
have estimated contains more than
$4,000,000,000 worth Of oil and natural
gas.
Secretary Wilbur suggests four rem
edies to avoid trouble in this field.
Pool all profits and divide them
according to the acreage owned in the
field.
2-Have the large companies purchase
all the small holdings.
3-Have the Government purchase
all the land from owners who refuse
to sign the limitation agreement.
4-Organize a holding company to
control and probably exploit the entire
development of Kettleman Hills.
More rich oil fields have been dis
covered in the United States in the
past 2 years than in the preceding 10.
The small producer finds hard Shedding.
But this Is true-overproduct has
always been present in the oil business.
The big corporations, in spite of It,
have grown fabulously wealthy. So it's
not an insuperable handicap.
Britain's Debt.
Great Britain's public debt is about
$30 600, O00, 000-more than twice that
OF the, United States. It Is less by about
$4,000, 100000 than it was at the end
OF the war, but 1t is higher than it was
flve years ago.
Chancellor of the Exchequer Snow
den estimates that for the fiscal year
OF 1929-l930. the interest and manage
ment OF the war debt will take about
As per cent OF the current business ex-
pendttures Of the government. The
inquire will amount to 81, ABS, $50, 600
out OF a total expenditure Of $3.50
$4,000.
No one who has studied the question
OF war debts but realizes that such a tax
burden bears very heavily upon British
INDUSTRY, resulting In an overhead
which has become a severe handicap 10
That industry In its competition for in
ternational trade.
Still British trade is greater In value
now than 1t was in 1918, its greatest
year before the war.
tCopyriEht, 1880. by North American News.
paper Aliance)