The Wilmington morning star., 1943-05-12
A Great Opportunity

Wilmington now has before i the finest
oppo1 tunity in its history to acquire local
ownership of the Tide Water Power company.
For years the city has suffered through
excessive electrical rates, because of absen.
tee-ownership and domination Of this utility
Sometime ago the Securities and Exchange
commission ordered sale of its controlling
common stock by the General Gas and Elec.
ttric corporation for the purpose Of removing
Its control from the foreign holding company.
The action by the SEC was in keeping with
its policy for advocating home ownership
whenever possible. A few days ago announce
ment was made that representative group
of businessmen and investors has made an
offer for the controlling stock.
In the past, the holding companies that
have controlled ,the Tide Water have been
more interested in its financial returns than
the benefits derived by the community. Under
this absentee ownership, the company has
been the subject of much criticism regarding
its capital structure and rates and the situ-
alton has been unsatisfactory from the view
point of the users of electricity and those
who have invested in the company's securi-
ties. It has, to put it direct, been an excellent
money.making field for northern capital.
During this period Of high hnancing-the
concern was once property in insults hold
ing operations-Wi Wilmington has felt the ill
effects of high rates and absentee-ownership.
The situation has not been the least bit at
tractive to the entrance of new Enterprises.
The city and the territory served by the
Tide Water company, have had little voice
in the operation of the utility.
With this in mind and fearing the conse-
quences if control Of the company should pass
to other outside interests, the Chamber of
Commerce some months ago formed a COM
mittee to study the problem with a view to
providing the city with the better service
and lower rates to which it is entitled.
AS a result of this survey, it was concluded
that the only satisfactory solution lay in local
ownership and control.
Ownership by local interests, men who have
lifelong, sincere stake in the community,
should change the present picture. Manage
ment policies would be based on the citys
best representatives men who have the ad-
vancement of Wilmington at heart, not far
away disinterested spectators. The property
would be operated for the benefit of the
territory served and its inhabitants.
The plan through which Wilmington inter-
ests would acquire control of the company
has been carefully worked out, after detailed
discussion with the State Utilities commission
and the Securities and Exchange commission
and conforms to the standards established by
both these bodies. Under this plan the COM
panys assets would be written down on their
books to a figure which reflects the true
values of its properties and its capitalization
will be drastically revised In brief, it in
wolves the elimination of inflatonary items
which have been criticised from time to time
from the company's balance sheet.
The bid by Wilmington interests is consid-
cred a fair one. In view of the past and
the city's greater hopes for the future, it
will be most unfortunate if this undertaking
one of the most vital m the long-range fu-
ture of the community is not consummated
1t is Wilmington's golden opportunity to-
ward lower rates.
1t is perhaps the final opportunity the city
will have to shake off the shackles of ab-
sentee-ownership.
Support of the group seeking to acquire
the Tide Water should be COMMUNICATIVE
and any impediments placed in its path should
receive whole-hearted opposition It is too i'm
portant civic undertaking to fail.