NWWJrJrwFTSSSff?
ti
I
flOSSIP OF THE STREET
VAUCLAIN'S TALK ON BIG GUN
CAUSES DISCUSSION OF BALDWIN
Increase in Capital Said to Be Favored Brok
ers Claim Present Price Too Low.
Gossip of the Street
miiU announcement by Samuel M. Vauclaln, vice president und sen
I raj manafjer of the Ualdtln Locomotive Works, president of tho
rjdystonc Munition Works nmt chatrmun of the subcommittee on
nny ami "ay auxiliary of tho Council of National Defense, concrrn
. the "war's greatest engine of destruction," which was to move
, 0( one of the factories on the Delaware today, naturally brought
considerable discussion on "Haldwln's" In the brokers' offices during
the day. nluI ln KOlnc ll,s'anecs scnt customers to a belated study of tho
last Baldwin statement. Some biokers hay that "Baldwin's" id telling
very 'nch umlcr n UTC which it may reach In tho not ery distant
future. U I said that tho directors of tho company favor an ncroase
of the capitalization to $80,000,000, divided Into $40,000,000 common and
the fame amount of preferred as Is now outstanding, and ln such an
sunt $10,000,000 of the common would be distributed to present stock
holJors as a melon.
A financial authority said to bo ln closo touch with the llaldwln
Interests presents the following array of statistics to show that tho
Baldwin common, by the company's lecent statement, shows ti book
Tiluatlon of 140 per cent:
Inventories ,. i... 513,93", 1G4
Investments 1,158,957
k Accounts receivable f ll'.ilS.SIS
tills receivable G12.2S7
Cash and maikctablc sccuiltles S,C3S,706
Total curient assets . $47,119,411'
Cun cnt liabilities . i 23,4S$,H03
Net uorl.ing capital $23.CS1,1 07
Bonded debt. Including Standaul Steel 13.000,000
Working tap.ul In e.cess of bonds
Baldw In plants' valuation
Standard Steel plants' valuation .....v .
Total aluation In excess of bonded debt.
Preferred stock outstanding
.$10,681,107
. 28,23 1.40S
. 9.119.C7C
.$48,053,191
. 20,000,000
Cocoanut Industry, Fnrticu-
larly on Northern Coast,
Gains Favor
rosiiblllllM of cocoanut production
in Central America, in the adjoining Is.
land, nnd on the northern coast of
South America are Just now being real
ld. Kxperlment proves that cocoanuts
are one of the jafest and most proltnbl
tropical crops In the world; Instances
of 150 per cent to SCO per cent annual
profit for a term of 100 jears being by
no means Infrequent. The crop Is nott
a perishable one, keeplnr for months In
fresh condition and for years wlicrt I
dried, or made Into canra Th thfirUet
are hungry for tho product and the- de
mand u increaslnc all the time.
Conra m tin m.,. .... -... ......
extracted from the shell and dried In
vmb ui mo ways. The best grade of
copra Is produced by sun drying, a
. . . 1w,1,en requires mveral weeks.
An Inferior grade Is produced by smoke
drying or roasting, which requires only
a few hours, but produces stained and
sometimes rancid copra. Cocoanut oil
Is made by crushing the copra.
The cocoanut Industry, which Is al
ready one of the chief resources of
Panama, shows a steady Increase. Tho
climatic conditions of the country are
peculiarly faror.ible. to the cultivation of
una jimin nu mucn or me sou contAlns
Juki the right properties. There are
2B00 HTiiar,. miles of good cocoanut land
close to the coasts of Panama, besides
t
JgVENiyq PUBLIC LEDGER-PHILADELPHIA, THURSDAY, APRIL' 25, 1918
1 - ' i . . ,
FOOD OIL BOOMED
IN LATIN AMERICA
'17
ELECTRICAL GOODS
some Interior Ian J, The present center i tance to the east of Celba, but beyond
of the cocoanut business In the San rail communication, the beach Is bor
Dlas country, east of Colon, on the At i dered for miles with cocoanut palms.
lantlc coast, 'where there 'kre some 300,-
000 trees. Most of the plantations be-( . ltcT? AT T QPtflflVr
long to small owners nnd to the San AUoIKAJjIA ObblYlIMjr
Bias Indians, who practice little or no
cultivation. Within the last few yean
American capitalists liae developeu
plantations on the Paienque coast and i American Products, Always Liked,
at Coco Plum Point The growth of this v , M.. i. n.
Industry Is shown by the following re- Now in Mllc" Greater De
port of tho American consul at Colon: I mand Due to War
In 1D1C, 1T.SSI.144 cocoanuts In the
shell were Invoiced for shipment, alued American electrical goods, always
raluVd''VvwIreKce'd5 " "' Australia he been In
Tho yield of cocoanuts In Honduras muc" lf"alcr ,ll!man,1 ,,, l,lnce th
Is steadily Increasing and planting Is I war started than ever before, according
going on both on the mainland nnd on , to a report published by the llureau of
the nearby Islands. The bulk of the I Foreign and Uomesllc Commerce. De
crop comes from the Bay Islands, which. I partment of Commerce.
In 191o, produced about 10,000,000 nuts. I No such extensive use Is made of elec-
In tlie same year the consul at Celba re-' trlclty as In the United States. In spite
ports 90,000 trees near Celba. of which I of the fact that Australia has no real
120,000 were then bearing. A short dls-1 poerty and a largo percentage of peo
ple who can afford to live well, but
continuous propaganda and educational
work wll do wonders In the end. At
present, Australians do not have the same
desire to take up the semlluxurles In
electrical appliances that Americans of
sufficient means will not do without.
General -conditions and methods of
conducting business In Australia are de
scribed by the author, Commercial Agent
n. A, Lundqulst, who, however, devotes
mort of his space to detailed descrip
tions of the markets for particular lines
of electrical goods, such as power-generating
equipment, electric railway
equipment, lamps and domestic appliances.
SILENCE MRS. SKEFFINGTON
Srrmnlo, C1., April SS. The au-
I thorltles prevented Sirs. II. Sheeny.
I Sherrington, widow of one of the leaders
of the Irish rebellion, from making a
Sinn Keln address. The meeting was
-&
advertised as a reception to 4frjrfhh.
SkefTlngton Under" the auspices of .fflk.i
Friends of Irish Freedom. U
After she had received a bouquet $HP
launched Into a speech, but Couhlvfc
Supervisor Robert 11. Callahan, inemWr,
of the county council of defense, w
minded her of a previously given prm-j
Is not to talk, and told her she coiitcl
not proceed,
,'l
KHARAS IS GIVEN PARDON
Itarriubnrg, April 26. Governor (
Brumbaugh has pradoned Theor
Kharas, of this city, a bank promoter;
who was sentenced to eight months Inl
jail last year on charges preferred by
Sirs. Kharas, No. 1, following hln second!
marriage In Maryland.
The Board of Pardons recommend
pardon at lis March session, but CHv.
ernor Brumbaugh refused to grant I
after receiving letters from the flf
Mrs. Kharas, who said he had married
i a second time before she had lifted
divorce granted her In New York Htate,
The United Gas
Improvement Company
36th Annual Report
FOR FISCAL YEAR ENDED DECEMBER 31 it, 1917.
Statement of Assets and Liabilities, December 31, 1917
ASSETS.
Gas, Electric, Welsbach and other Proper
ties at cost $78,922,480.27
Uncompleted Construction Contracts 270.0S9.39
Real Estate, Philadelphia and elsewhere... 1,048,584.10
Cash 4,330,466.46
Accounts and Bills Receivable 5,457,584.00
I Coupons and Guaranteed Dividends (ac-
' eruod but not yet due) 566.840.0J
. . t Storeroom Material 262,404.82
To the Stockholders of THE UNITED GAS IMPROVEMENT Sinking Fund Securities 0,942.000.00
COMPANY:
t
Total $97,809,429.06
LIABILITIES.
Capital Stock $61,0.29,800.00
For the fiscal year ended December 31, 1917, the sales of gas and I
electricity by the properties in which you are interested show, in com-!
parison with 1916:
City of Philadelphia 9.11 per cent, increase.
Properties outside of Philadelphia:
Manufactured gas 11.40 per cent, increase.
Electric current 20.60 per cent, increase.
Natural gas 26.93 per cent, decrease. i
' $34 303 183 7
The net profits for the year, as shown in detail in the Statement Undlnded Pfoflts of year 1917 lWBoioa
iii4jvit viivno) ncg fUiVVVlilt
Taxes (accrued but not due).
Sundry Accounts
Undivided Profits December
31, 1916 $33,415,244.73
Less Extra Dividend paid in
Year 1917 1,110,059.00
535,000.00
606,693.31
Of this amount $507 038.30 is that portion of the profit which was i Undivided Preftts, December 31st, 1017,'
in
vested as above 33,637,935.75
Balance, equal to 140 per cent on common J28,055,1S1
These figures, ho iajs, seem to warrant assertions of tho common
ttockholderu thnt they blmlf thla jear bo given some substantial compen
sation, possibly In connection with the union of tho various Tlaldwln prop
erties, and it may bo well to recall that ln the last sK and one-half jeara
the Baldwin has put back Into the piopcrty ln the shape of undistributed
urplus earnings nn amount equal to more than 04 ret cent on the common
stock This, with the unknown value of the Udd stone concern, &eems to
show the block is selling considerably below Its tangible assets.
Honey Nol Yet Affected by Loan
Up to the present the third Liberty Loun campaign has had little
effect on tho money market. Bankers In this city uscrlbe this, to tho
effect on the money market. Bankers In this city ascribe this to tho
small pajmentH made on account of the bonds, and they say that early
next month, when tho campaign closes and tho banks will be obliged to
fofv.ard tho tlrst payments to the Government, the prctsuie on the money
market will then chow Itself. It is tine that the applicants for small
amounts, pacing on the Installment plan, have already made their llrst
payments, but those who have subscribed for large amounts are not
likely to make nny payments till the close of the campaign.
To a number of local bankers the problem of financing the Liberty
Loan subscriptions present less dllllculty than will financing of Ted
lfi Income and cxce&s-prollta taxes, which fall due Juno 15. They hopo
that Congress may yet pass a law making provision for payment of the-e
tas on- the installment plan, although the prospects of Its passage at
the present time aie not ery hopeful.
Certain banks cNpect torae of their customers to look to tlicm to
supply tho necessary funds on June 1C. Several ljrua concerns, however,
have taken the advice of their banks and have purchased sufiiclont cer
tllcates of indebtedness to meet their tax demands. Ke ertheless, it is
generally acknowledged that there are still a number of concerns which
hae not been able to avail themseh e. of this convenlcnco and must
therefore fall back on their banks for assistance.
As fc . i backs - onctrned, the dln'crenco betw ecii llnanclng
R&io faes and the Liberty Bond purchases Is this: Tho subscriber
for the bonds puts up his bonds as collateral for tho loan with his note
and his note can be redlscounted at tho Federal Vteserve Bank, where is the
wan who borrows from the bank to pay his taxes meiel gives his promls
soiy note, which is not eligible for icdlsoount.
1'ew bankers see uny bcrlous dlfllcultj In the situation and feel certain
It will work out nil right, but the necessary legislation to enable the
payment of Federal Income and excess-profits taxes by Installments would
greatly relieve the situation.
l7. G. I. Reflects Changed Conditions
'The talk about the listing of the I", (i. I. btock on the exchange"
aid a well-known banker today, "brings back to my memory tho old dajs,
when any one, whether stockholder, tank outsider or banker, who tried
10 get any information about the IT. G. I. was politely Informed that It
was none of his or nny other person's business. In those dajs there
were no annual statments, and the U. G. I. was not alone by any means
in taking this position. Tho Urst break toward frank publlcltj in the
conduct of the affairs of what nre now acknowledged to be temlpubllo
concerns came with the formation of the United States Steel Corporation.
At the end of their llrst year of operation they put their cards on tho
table and said, 'wo have so much of unfilled orders, wo ha.o so much
cash on hand, etc., and took stockholders and tho public into their
confidence. Before they did this wo had no reports of industrials, tho
only companies about which any information could bo obtained was
the railroads.
"I don't believe," ho continued, "that tho public appreciates the stu
pendous change which In lecent jears has come over the manage
ments of these corporations in tills particular respect, and I belieo we are
due for still greater publlcltj ."
Vauclain's View of Banks
The criticism leveled at Philadelphia banks and bankers by Samuel
U- Vauclaln was brought to the attention of some prominent bankers
Jesterday, who said that tho statement was not broad enough to admit
of a speclfla reply, and nomo hinted that If Mr. Vauclaln would give an
Instance of just what ho meant they would bo In u better position' to reply
tp him.
One well-known investment banker and bjoker toho lead Mr. Vauclain's
remarks said ho was perfectly right In saying that If Philadelphia bunk
trs don't boon adopt tlio broad liberal method of financing Dig enterprises,
or even small ones which may grow big in u brief time, they will find
themselves simply handling the payrolls Instead of carrying the big ac
counts. He gavo an tnstanco of one coiporatlon which came to his notice a
'ew days ago which wanted to extend its plant and wished to borrow
'200,000, The concern, ho said, was manufacturing munitions and other
materials for the Government and had large coi-tracts on hand. One bank
.tter another in this city refused financial aid on the ground that they
did not think plant-extension work was the proper thing to bo financed
by a bank; that If the money was to buy material It might be considered,
te. Tho result Is, he said, that the concern is driven to try to find
Mne Xew York financial Instlutlon to assist it.
This broker, called attention to the big concerns like Mldvale Steel,
Hog inland and tho dozen or so shlpnrds recently constructed on tho
Delaware, besides many more enterprises which, If given the proper
financial assistance by 1'hlladelphiu bankers, will not be compelled to
fesort to New York financiers who, If they give the needed help, will, of
eourse, insist on the bank accounts of these concerns being kept in New
York, while tho pet,ty cash and the payrolls will be the part of the local
banks. He Instanced the situation in Pittsburgh, whore, before the forma
t'on of the United Bteef Corporation, the Carnegie concerns kept their
Principal accounts in the Pittsburgh banks, but after the formation of
the corporation the principal accounts wero transferred to New York
banks that asslstod In financing the company and the Pittsburgh banks
Imply carried tho petty cash and payrolls, as they are doing today.
The feature of the bond market during the last c&uple of days has
been the strength arid activity in foreign Government bonds, particularly
Whe. city qf pari . which have advanced about 3 points over last week's
"cwhoml. CUy ot Lyons and t Ity of Marseilles ?s also were strong ana
W Jyfh!r, AriSic-'FrencH-W wore firm, rtUhPliBW ttio turnover
r wWi,c9't w- mm mrs M Ws m ue.yrenc icsima
realized in cash during 1917 from the sale of a minority intcreit, pur
chased several years ago, in certain oil producing and refining companies
whose business has changed from a domestic into an export trade and
which are no longer of assistance to your company in securing a supply
of gas oil. The balance of the profit from this transaction j was repre-1 Lghnni, Ross Bros. & Montgomery, Certified Public Account-
ZX " ""7; ."". :".C:: .: V,::ri r ";;Vo 1V Ur.- "nts- hae nde statements, and report as follows:
Total $97,809,429.06
year's account, thus insuring the continuation during 1918 of the regular
8 per cen. dividend, which will not be fully earned from regular sources,
owing to the great increase in operating cost due to war conditions and
owing to the fact that our share of the income from gas sle3 in Phila
delphia was reduced on January 1, 1918, to 73 cents per thousand cubic
feet, in accordance with the terms of the lease.
Profit and Loss Account for Fiscal Year Ended December 31, 1917
EARNINGS.
From Leased Works and from Investments
in Stocks and Bonds
Sale of Securities
Engineering nnd Supervision
Interest
Sale of Storeroom Material
Rental of Broad and Taskcr Streets
Offices
Rental of Offices in Building, Broad
and Arch Streets, to Companies
I in which this Company is a
I shareholder . . ,
'lhe new power development, partly from steam but mainV from ihj
water of the Housatonic River, is well under way and will bu pushed 8
completion as rapidly as possible, together with the construction of thai
necessary transmission lines to carry the current to Watcrbury, New!
Britain and intermediate territory. I I
Another of your companies called upon for large expenditures fay 'I -i
Parilfaf nrf-m.n 4 Via XTA4t.n TJlMnM n .....1 C1-..-1- n . If-x- 'x
furnishes gas and electric current in tho cities and towns of
East Chicago,
Hammond,
Michigan City,
South Bend,
Mlshawaka,
Whiting,
Plymouth,
Fort Wayne,
Lafayette,
Bluff ton,
Decatur,
Logansport,
Wabash,
Frankfort,
Lebanon,
Crawfordsville.
)
h
"LYBRAND, ROSS BROS. & MONTGOMERY,
Certified Public Accountants,
Morris Building.
PHILADELPHIA, 6th April, 1918.
?7,153,61.08
508,638.30
6,846.80
431,025.21!
14,154.01
1,600.00
47,718.46
Total Earnings J8.163.444.77
EXPENSES.
Laboratory
Department of Tests
Registration of Stock
llvr.ctKe of Restaurant, Broad and Arch
Streets, over Receipts
Rental of Safe Deposit Boxes
Construction Department Storeroom
Litigation, Retainers, Lawyers' Fees, etc...
Operating Telephone Service
Dues to Trade Organizations
Advertising in Trade Journals
Special Advertising (Annual Report, etc.)
Office Furniture
Cost of Operating Building, Broad and
Arch Streets, including Taxes..
Salaries and Traveling Expenses
Office Supplies
General Expenses
Taxes, State and Federal
Insurance, Taxes and Maintenance of
Broad and Tasker Streets Office
Construction Contracts
Replacement of Elevators, Building, Broad
and Arch Streets
Bonus Tax, Increase Capital Stock
Contribution to American Red Cross War
Fund
Contribution to Y. M. C. A. War Fund
Contribution for Year 1917 to Sinking Fund
created in 1908 to retire Invest
ment in Philadelphia Gas Works
This is one of the most important industrial districts in the United
States, and most of its important concerns have added to their regular
and ordinary business the demands of the Government for war material
The past winter taxed to the utmost the strength and ability of your
organization. Unusual demands for coal for war purposes, coupled with
transportation difficulties due to these new Hrmnnrls nnrl in nn iininnnllv i
severe- winter, resulted in a scarcity of coal for domestic use and a phe-j
nomenal demand upon gag companies.
Take as an example our experience in the City of Philadelphia, which
is typical of the experience in all northern and western cities:
In December, 1917, so soon as cold weather set in, the demand for
gas increased rapidly. On December 10th, 11th and 12th the average daily
send out was 54,285,000 cubic feet. Thereafter it decreased somewhat
until the zero weather of the last few days of December, when the demaHin
jumped to an average of 58,000,000 cubic feet per day, the consumf
tion on December 29th amounting to 59,764,000 cubic feet, as com
pared with 47,490,000 cubic feet on the maximum day of the previous year.
This entiroly unprecedented and unexpected demand, due to the in
ability of the citizens to secure a supply of domestic fuel at exactly the
period when the days arc shortest and the nights longest, combined with
a period of unusually cold weather, rapidly reduced the stock of oil which
we had accumulated for the winter's use. This oil is carried in bulk by
steamer from the Gulf of Mexico, delivered into tanks located on the west
bank of the Schuylkill River, and thence by barges to the Gas Works at
Passyunk Avenuo and Schuylkill River, nnd Tioga Street and Delaware
River.
We were unable to leplace our depleted stocks because the Govern'
AUDITORS' CERTIFICATE.
We have examined the Assets and Liabilities of The United Gas Inv
arovement Comoanv as of 31st December. 1017. and the Income and ODer
ating Accounts for the year ended that date and found them correctly j ment se,'ed for its own use a number of the steamers belonging to our
sUtcd on the books of the Company. We certify that the foregoing state-' contracting company, which was, therefore, unable to deliver to us th
ments of Assets and Liabilities as of 31st December, 1917, and Profit and j amount of on wiucn we ordered.
Loss Account for the year 1917 are in accordance with the books. In addition to what we were able to secure under our contract, we
LYBRAND, ROSS BROS. &. MONTGOMERY, purchased all the additional oil that it was possible to get into our Works
Ctrtifitd Puttie Accountants." by pipe lines, and paid for it much more than normal prices.
That we were able to supply gas through the winter of a candle power
$35,343.82
29,469.01
1,500.00
16,272.45
2,020.00
3,831.33
19,940.78
6,167.42
2,112.00
960.13
6,230.15
7,790.55
83,346.40
555,942.53
17,318.81
43,939.76
536,178.99
477.85
66,801.29
48,939.60
13,865.13
50,uoo!oo
15,000.00
In addition to this, as has been our custom heretofore, a Committee
of the Board of Directors, not executive officers, have examined and veri
fied the company's securities, and report as follows:
"MARCH 6, 1918.
Mr. Samurl T. Bodine, Pretident,
The Unittd Gas Improvement Company,
Broad and Arch Streets, Philadelphia.
DEAR SIR:
Pursuant to resolution adopted by the Board of Directors on February
13, 1918, we have counted all the stocks and bonds owned by The United
i Gas Improvement Company and found the same to agree with the amounts
I stated in the books of the Company.
' We have attested in writing detailed list of said stocks and bonds and
have filed the same with the Treasurer.
Very truly yours,
WILLIAM WOOD,
MORRIS L. CLOTHIER,
EFFINGHAM B. MORRIS,
THOMAS J. DOLAN."
and heating value in excess of that furnished in any other city in the State
of Pennsylvania was duo to the large surplus capacity of the Gas Works
over ordinary demands, nmplo size of mains, the vigilance and energy of
our employees in the Manufacturing and Distribution departments, the
co-operation of the City authorities in keeping open with ice boats the
channel of tho river and to the earnest and intelligent efforts of our Pur'
chasing Department, with the co-operation of tho authorities in Washing-1
ton and the Philadelphia Fuel Administrator, to secure a supply of coal
and oil, and to prevent the diversion of those materials to the use of othessz
whose needs were of less importance to the public than ours. bjj
During the Red Cross campaign of 1917 many of the financial and
other corporate institutions of the country declared special dividends
earmarked as "Red Cross Dividends," and in sending out checks suggested,
that they be endorsed over to that fund. The work of the Red Cross and
the Young Men's Christian Association will be most potent in winning
the war and protecting the property interests of this country. Therefore?
your Board of Directors, who in common with other shareholders contrit&Z
uted to the extent of their ability individually, felt that it was a wl8T
business measure for the protection of your property for the CompanjZt
6S5.00Q.00
nlsn to ml'i riirtct contributions to this work, and authorized suhspri'tV.
It has been our custom for many year to advance to the various com-, tJoM of SOi000 to the Rcd Cross and $15,000 to tho Young Men's ChrlstlEC
nanies in which we are shareholders a considerable portion of the funds i -!.( 1017 tv... p.mM.
! which they require for the extension of their plants, being repaid from ' To the Fjrgt Llberty Loan your Company subscribed ?600,000 and wjti&j '
I the proceeds of their securities issued for Capital account, and, in tho an0tted $325,000. '-
I case of tho Philadelphia Gas Works, through the operation of various To the" geco'nd Liberty Loan your Company subscribed $500,000 and;;
, sinking funds which will return our investment at the termination of the wgs auotted $300,000. ' 2 '
''ease- j. Of these two issues $120,250 were sold to employees on the instalmem '
! The first estimate of such requirements for 1918 was radically cut by p,an and $225,000 of the 34 bonds were sold to the public at par and
, limiting extensions to those necessary to meet the requirements of custo- accrued interest. We still have in the Company's treasury $279,750 of the
oners engaged in Government work and of the franchises of the various c& bon(Jg( and hRVe subscribcd t0 $260,000 of the AKVo bonds of the
1 companies, by the decision not to provide reserve apparutus against pos- r,ird tSSUp -
sible breakdown of the largest units of the various plants at the time of War conduions involve special hardsnip for PubHc UtUlty Companies
peak load; by treating storeroom stocks of all companies as though one, becausft tfc CBnnot ag Jn cMt q ,yate bu3iness conccrns recover
-.-.. w.. -.. r; - . - .-... , . ' , . . A. 1 greatly increased operating costs by automatically and promptly increai-
and by cutting out ell canvassing for new business and reducing the . sejjjn prCM J '
New Business Department force to the smallest possible nucleus upon , ,.,." . , , . . , ., . , ?? '
which to base reorganization, with the final result that there is required I s has been recognized by our National Lxccuttves and you atyg
for the Philadelphia Gas Works and for the various companies in the urcd to.red carefully the enclosure sent to each shareholder with thj rJ
State of Pennsylvania in which we are shareholders $2,400,000, which will "POrt.viz: , ,, , 3r'
, ,nw!rf.,i nV Th finite nR Tmnrnvprnt Comnanv from its cur- O) Letter from the President to the Secretary of the Treasury.
..,, r r .io . .. m . .1 - ,1 .
y) j.cuer irom me secretary 01 me .treasury 10 me rresiaem.
Total Expenses 2,247,939,50
rent resources, and for tho companies outside of the State of Pennsyl
vania $7,500,000, to be provided as outlined later in this report.
(3) Excerpt from tho Annual Report of the Comptroller of th
Net Profits for Year 1917 $3,915,505.2"
Dividends paid in 1917:
January 15th $1,110,059.00
April 14th 1,110,059.00
July 14th 1,217,710.00
October 15th 1,218,222.00
Less Interest Adjustment on Capital
Stock Subscriptions
Balance to Undivided Profit Account. .
$4,656,059.00
73,303.75
$4,682,755.25
1,332,750.02
ei..il.aA.i.al wv.Slt 1 1. m. ..MKl.lti.H tlmrn tl.... ... J. .. 4 1. .in...f..l a...J., wUriCIlL
3iumilliBOUBiy Willi blic ivmpictiuji, anct uuci: muiiu.a uiictui akuuj, - d,4
of these estimates, the National Government took the position that during A number of the companies in which The United Gas Improvement
the period of the war there must be no issues of securities by State, Mu- Company is a shareholder have applied to the Public Service Commission
nicipal and private corporations without the approval of the newly created of the States in which they operate for permission to increase rates; sorno
' Capital Issues Committee of the Federal Reserve Board. of these petitions have been granted, others are pending, hone has been
Your Company was one of the first applicants under this ruling and, refused. 'S
i after two presentations of our case by your President to the Main Com- In the Annual Report of last year two new policies were announced'
I mittee in Washington and one hearing by the Philadelphia Advisory Com- by your management: "n,
mittee, permission was granted us to borrow $7,500,000 for one yeatv (1) "To distribute by way of extra dividends a larger proportion of
with the right to refund the same, if necessary or expedient, in a second the earnings than heretofore, when annual earnings and general business" i
year's loan for like amount. conditions permit." jt
$7,500,00a of one (1) year 6 per cent, unsecured notes, dated Febru- (2) "To take the steps necessary to list the stock of The United Ga&
j ary 1, 1918, with a refunding option to the Company, were sold to Drexel Improvement Company on the Philadelphia Stock Exchange," -iw
Company. Any increased dividend under existing conditions would in the unan-
The cost ef securing this camtal will be a charce ae-s.inst the com. ' imous ooinion of vour Board of Directors be most unwise. "
$o,915,605..7 panes for whose benefit it was borrowed, and will not directly affect the Your officers havfc been so engrossed in meeting the many daj$,,
I earnings of The United Gas Improvement Company. problems of operating under new and burdensome conditions as to Mpff
In comparison with the previoui year this may be I Sixty (60) per cent, of the proceeds of these notes will be used in the preparation of the statements requirod in connection with an a jW
the development of the plants of the Connecticut Light and Power Com- J cation for listing your stock. I am glad to report, however, that on AiL.
pany, in which your company became largely interested early in 1917. 18th, 1918, the Stock List Committee, under authority from the Governing
I The Connecticut Light and Power Company supplies electricity for ' Committee, admitted the Capital Stock of this Company to the regular Up-
iignt nu power in mo iMauraiucK ana jiousaionic vaueys, oi Connecticut, ' or tne i'miaaeipma stock txenange.
' U""1" T"i"."i T," in a series 01 essentially manufacturing commumt es. amone which are: With ereat retrrefc I record the death, on March 13. 1918. of Jammi.
summarized at follows:
1916.
1917.
From Regular
$8,817,981.18 $7,654,806.47 $1,163,174.71 Decrease I in a ), 0f essentially manufacturing communities, among which are:
Sources
From Special Sources
Profit from Sale
of Securities ..
622,576.50 508,688.30 113,938.20 Decrease
Total Earnings $9,440,657.68
Expenses, Taxes and
Sinking Fund .. 2,171,226.26
Net Profits
Dividends
Of
. $7,269,331.42
4,440,230.00
$8,163,444.77
2,247,839.50
$5,915,505.27
4,682,76355
$1,277,112.91 Decrease
76,71354 Increase
$1,353,828.15 Decrease
143,519.25 Increase
To Undivided
Account
Profit
Waterbury,
Naugmtuck,
Waterville,
Wattrtown,
Oakville,
Cheshire,
New Britain,
Plalnville,
Berlin,
Newington,
Southington,
Norwalk,
East Norwalk,
New Canaan,
Wilton,
Georgetown,
Rowayton,
Greenwich,
Even in pece times this is one of the mot imporUnt manuftctut'
R82A09MB 11.332,750,02 $1,46645.40 Decrease Untl .re ang.ged in th. production of war material, and
most oi ineni aepena upon xnis company xor power, ineir demands hY6
East Portchester, j Durj'nr thirty-three and one-half years spent in your company's servwTJ
was xaitnxui to every trust committed to his care.
All employees of The United Gas Improvement Company and t 1&$i
companies in which The United Gas Improvement Company is a Jjay.
holder have worked with more than their usual energy and fidelity smHj
me strenuous conaruons oi me past year, in is applies ootn to ami
and to day.paid employees. There is complete harmony, co-operatW
sympathy between labor arfd capital in the case of Th United Ga Ujta
..w, w.v.v wv..4..aj.
Stanwich,
Cos Cob,
Riverside,
Sound Beach,
Branford,
New Mllford,
Seymour,
Beacon Falls.
By order of the Board of Directors,
SAMUEL, T. BODWfc,
j f wits ef jrlar- ytars, fswq Saja oX Scuxiti4tM
AB El.tr Dividwd Of T,U0,W.0O U taid AwU U. 3017'.,out h lncrid. and ar ineMaslne-. ir nnldlv that th f5er,rtl.i,f T,m. U !' r MWGOF COf i
- -. ,--.- '--.-'-. r- -- ww " r --- w - - VwH,.vv..wvw wwsf j virsi uj lot f Wkm Wmm-M a wh i
) not? able to meet them with Ks-lta'sting steam an watef r- -ver plants. ' DifTK&!TVmTSWCiMmi
PretidtH'-
MT fecAUSt or
o