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COMING OF ELECTRICITY In 1882 the gas industry's most formidable competitor entered the field, when the first electric generating station was put into operation in New York, just 3 months after the organization of U. G. I. Within the next decade electricity seriously threatened the existence of the gas industry by displacing gas as an illuminant.

THE WELSBACH LIGHT The part played by U. G. I. in the struggle between gas and electricity, as an illuminant, is of especial interest because it was the U. G. I. that gave the gas. industry the means of postponing for several years the inevitable loss of the lighting business while it was developing its cooking and heating business. Carl von Welsbach, an Austrian, had invented a mantle which glowed brightly when heated in the proper gas flame. Sensing that salvation for the time being lay in replacing the old open-flame burner with the Welsbach light, U. G. I., in 1887, through a subsidiary—the Welsbach Incandescent Gas Light Co.-acquired the United States patent rights. Shortly thereafter a factory was established in Gloucester City, N. J., where some 648,000,000 Welsbach mantles were manufactured and shipped all over the world before the eventual displacement of gas, as an illuminant, by electricity.

FURTHER ACQUISITIONS At this time U. G. I., although until then exclusively interested in gas, recognized the coming importance of the infant electric industry and through the purchase of the Heisler Electric Co. and the development of the electric apparatus and appliances introduced by that company, made contributions to the new industry that greatly helped to carry it through its initial stages of experimentation and development. U. G. I. was compelled to carry on this pioneer work on its own ingenuity and resources. Development losses and expenses were absorbed because the company had faith in the ultimate growth of the indus.ry. U. G. I. further backed its faith in the future of electricity by adding electric light and power properties to its gas-company holdings. Several companies were acquired from time to time and either retained or subsequently sold or exchanged for other electric properties; additional gas companies likewise were acquired and some of those retained are now large and important separate operating companies in the U. G. I. system or part of other expanded systems. Thus, U. G. I. gradually changed from a company primarily instrumental in the development of the technical arts of the gas and electric industries, to the ownership and operation of properties of this type.

DEVELOPMENT OF GEOGRAPHICAL AREAS

The small isolated electric and gas companies that were bought in the early days are in most cases the genesis of the U. G. I.'s present investment in utilities. These small companies were developed by logical expansion by U. G. I. into substantial subsidiaries such as the Philadelphia Electric System, and the gas companies in Pennsylvania. It was the ownership in the more scattered companies that led to U. G. I.'s having the interest which it has today in other holding companies.

Thus the U. G. I.'s present investment of $60,000,000 in what is now the Public Service Corporation of New Jersey may be said to have started in 1886. Gas and electric companies owned by U. G. Î. in the territory now served by Public Service have been consolidated into the operating companies of the latter, resulting in increased interest on the part of U. G. I.

The present investment of $16,000,000 in Niagara Hudson Power Corporation System originated from events in 1925, when a company in Gloversville, N. Y., which U. &. I. had held since 1896, and later the more important Syracuse Lighting Co., were turned into the Mohawk Hudson Power Corporation, now a subsidiary holding company of the more recently formed Niagara Hudson Power Corporation.

The investment of some $10,000,000 in the Commonwealth & Southern Corporation was the outgrowth of a series of investments beginning in Atlanta, Ga., in 1889. Additional gas and electric companies were acquired in Georgia, South Carolina, and northern Florida which are today represented in the company's minority interest in the Commonwealth & Southern Corporation.

Through the consolidation of properties in contiguous areas, farms, and rural homes, and small_outlying communities, now have available adquate electric and gas service. These conditions would not have been possible without holdingcompany control and direction.

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Cash and current items.

$1, 783, 930.00 Advances and other accounts not currently receivable 3

9, 202, 570.58 Capital stocks of other corporations: Subsidiary companies

$209, 600, 529. 46 Other 5..

122, 244, 767. 68

331, 845, 297. 14 Total net assets....

342, 831, 797. 72 · The company is guarantor of $1,954,000 principal amount and interest thereon of Nashville (Tenn.) Gas & Heating Co. first-mortgage 5-percent bonds, due May 1, 1937. The company is also guarantor of interest only on $12,153,000 principal amount of Connecticut Railway & Lighting Co. first and refunding mortgage 442-percent bonds, due Jan. 1, 1951. The company is obligated to indemnify the Koppers Co. of Delaware on account of that company's guarantee of the payment of dividends at the rate of $3 per share per annum on 198,997 shares of preferred stock of the Connecticut Gas & Coke Securities Co. for 25 years from Oct. 1, 1926. · Balance after payment of preferred stock and expenses incidental to dissolution. : Subsidiary companies: Utilities Realty Co., the.

$4, 515,000.00 Philadelphia Gas Works Co., the..

2, 150,000.00 Welsbach Co..

766,500.00 Nashville Gas & Heating Co.

432, 225.00 Commonwealth Utilities Corporation.

368, 400.00 Miscellaneous..

89,000.00

$8,321, 125.00 Other: United Engineers & Constructors, Inc.

864, 148. 25 Miscellaneous

17, 297.33

881, 445.58 Total.....

9, 202, 570.58 NOTE.-Great difficulty would be experienced in realizing the face amount of the above advances, other than over a long period of time.

Stocks of subsidiary companies

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Utility companies:

Allentown-Bethlehem Gas Co... Common.
American Gas Co., the

Capital..
Chester County Light & Power Co. Common..
Commonwealth Utilities Corpora- Class A common..
tion.

Class B common..
Concord Gas Co..

Common.. Connecticut Electric Service Co., ...do..

the. Connecticut Gas & Coke Securi- ...do.

ties Co., the. Consumers Gas Co.

Capital. Delaware Electric Power Co. Common. Erie County Electric Co.

Capital. Harrisburg Gas Co., the.

Common. Lebanon Valley Gas Co...

.do. Nashville Gas and Heating Co....{percent preferred.

Common. New Haven Gas Light Co.... Capital. Philadelphia Electric Co.

Cominon.. Philadelphia Gas Works Co., the.. Capital. Nonutility companies:

140, 085 900,000 39, 375 18, 085 19, 747

8,000 15, 834

64 9, 580, 929

50

26/10, 000 603/100,000 25/100,000 13/100, 000

1/80 6/100,000

1/33 906/100, 000 602/100,000

1/26 169/100, 000 78/100, 000 85/100, 000 34/100,000 68/100,000 3/1,000,000

2/5 2/1,000,000

63. 42 100.00 100.00 63. 47 99.74 99.31 99.62 €97.24 100.00

Fuel Supply Co., the.
Ugite Sales Corporation.

...do. Utilities Realty Co., the.

.do. Welsbach Co....

7
percent preferred.
Common...

9/100,000
11/100,000
442/100,000

5/10, 000 105/100,000

...do

2,000

2,500 102, 846 11, 738 24, 480

100.00 100 00 100.00

69.94

. Includes 631 shares held by New Haven Gas Light Co.

Includes 273,911 shares held by the Connecticut Gas & Coke Securities Co. e Includes 658,415 shares held by the American Gas Co.

* See footnote on p. 855.

Stocks of certain holding companies held by the United Gas Improvement Co. as

miscellaneous investments, themselves subject to reorganization or dissolution

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The Commonwealth & Southern Corporation as of Dec. 31, 1933 Common stock, no par (33,673,328 shares)

$168, 366, 640 Preferred stock, no par $6 series (1,500,000 shares).

150, 000, 000 Funded debt:

Southeastern Power & Light Co. 6 percent debentures, series
A, due 2025.

39, 175, 000
Penn-Ohio Edison Co.:
6 percent debentures, series A, due 1950-

5, 771, 500 542 percent debentures, series B, due 1959.

7, 902, 000

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21, 380 43, 808 940, 246 71, 805

18/100,000 271/100,000

92/100,000 188/100,000

1/25 309/100,000 168/100,000 132/100.000

11. 78 2. 86

Utility companies:

American Superpower Corporation $6 preference...

(of Delaware), the.
American Water Works & Electric Common..

Co., Inc.
Bridgeport Gas Light Co., the... Capital..
Commonwealth & Southern Cor- ($6 preferred..
poration, the.

1 Common. Connecticut Railway & Lighting 1444-percent pre

64. 75

39,046
30, 775

2. 64

• 21.98

18, 565

52 33, 401

80/100, 000 2/1,000,000 144/100,000

15, 527

67/100,000

ferred. Co.

Common.. Consolidated Gas Electric Light do.

& Power Co. of Baltimore. Hartford Gas Co., the..

.do... Illuminating Shares Co., the. Class A, capital...

(6-percent first Kansas City Gas Co..

preferred.
6-percent second

preferred. Manchester Gas Co..

7-percent preferred

Common. Mohawk Hudson Power Corpora- { $7 preferred.. tion.

117-percent preferred. Nevada-California Electric Cor- $7 second preferred poration, the

Common.. New Britain Gas Light Co., the... Capital.. Niagara Hudson Power Corpora- Common..

poration Northern Liberties Gas Co....

do. Public Service Corporation of 8-percent preferred. New Jersey.

Common Sierra Pacific Electric Co..

$5 preferred.. Torrington Electric Light Co., the. Capital.. United Illuminating Co., the..

do.
(6-percent first pre-

serred. Wyandotte County Gas Co., the..

6-percent second

preferred. Nonutility companies: United Engi- Capital..

neers & Constructors, Inc.

46. 67

5. 16

840 4, 200 40, 420 75, 437

1, 188 13, 925

1, 655 643, 441

4/100.000 18/100, 000 174/100,000 324,100,000 5/100,000

6/10,000 7/100,000

1/36

7. 97 3.31 7.36

617 10,000 2,017, 490

497 1, 844 35, 310 1,000

3/100,000 43/100,000

1/12 2/100,000

8/100,000 152/100.000

4/100,000

3. 25 27. 86 0.36 4. 32 5. 67

4,000

17/100,000

1/93

250,000

50.00

Includes 20,445 shares $6 preferred stock held by the American Gas Co. • Includes 20,999 shares held by the Connecticut Gas & Coke Securities Co. 1 Outstanding stock not available. NOTE.-Not including companies in receivership.

Niagara-Hudson Power Corporation as of Dec. 31, 1933 Common stock, par $15 (9,262,220 shares)

$138, 933, 300 Notes payable, banks..

12, 300,000 Public Service Corporation of New Jersey as of Dec. 31, 1933 Common stock, no par (5,503,193 shares) -

$149, 933, 691 Preferred stock: 8 percent cumulative par $100 (214,493 shares).

21, 449, 300 7 percent cumulative par $100 (289,080 shares)

28, 908, 000 6 percent cumulative par $100 (598,864 shares).

59, 886, 400 $5 per share per annum no par cumulative preferred (517,369 shares)

49, 410, 541 Long-term debt

19, 087, 623

The Commonwealth & Southern Corporation Subsidiary Companies--Consolidated

capitalization of the Commonwealth & Southern Corporation Subsidiary Companies, as of Dec. 31, 1933 1

$34, 986, 019 96, 912, 800

39, 207, 619 95, 076, 500

23, 759, 800 44, 126, 300

3, 538, 862 7, 879, 800

2, 312, 900 7, 825, 500

Alabama Power Co.:

Preferred stocks.

Funded debt.. Georgia Power Co.:

Preferred stocks..

Funded debt.
Tennessee Electric Power Co.:

Rreferred stocks.

Funded debt. Mississippi Power Co.:

Preferred stocks.

Funded debt.
South Carolina Power Co.:

Preferred stocks..

Funded debt. Gulf Power Co.:

Preferred stocks.

Funded debt.-Consumers Power Co.:

Preferred stocks..

Funded debt.
Central Illinois Light Co. (Consolidated):

Preferred stocks.

Funded debt.
Southern Indiana Gas & Electric Co.:

Preferred stocks.

Funded debt. Ohio Edison Co.:

Preferred stocks.

Funded debt.. Pennsylvania Power Co.:

1, 118, 800 2, 500, 000

70,009, 263 91, 926, 600

11, 115, 300 7, 316, 500

7, 984, 200 5, 500,000

28, 416, 400 70, 130,000

Preferred stocks..
Funded debt.

2, 794, 643
6, 978,000

Total preferred stocks.
Total funded debt....

225, 243, 866
436, 172, 000

1 Not including common stocks.

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Consolidated capitalization of the Niagara Hudson Power Corporation subsidiary

companies as of Dec. 21, 1933 1 Buffalo, Niagara & Eastern Power Corporation: Common stock.

$2,019, 606 Class A stock..

501, 493 Preferred stocks...

85, 685, 965 Preferred stocks, subsidiaries.

11, 209, 050 Funded debt.. Mohawk Hudson Power Corporation:

98, 115, 750 Common stock.

19, 196, 993 Preferred stocks.

65, 011, 482 Preferred stocks, subsidiaries

33, 702, 497 Funded debt, subsidiaries

100, 840, 500 Advances from affiliated companies

17, 000, 000 Long-term liabilities, subsidiaries..

3, 401, 917 Oswego River Power Corporation: Common stock..

7,707, 200 Preferred stock..

2, 300, 000 Funded debt.

2, 000 The Power Corporation of New York: Common stock.

3, 389, 555 Preferred stock.

9, 803, 500 Funded debt..

26, 895, 800 Advances from affiliated companies.

10, 666, 000 Long-term liabilities.

625, 228 St. Lawrence Securities Co.: Common stock..

12, 303, 700 Preferred stock.

200, 000 Funded debt.-

000 Advances from affiliated companies.

3, 262, 500 Consolidated capitalization of the Public Service Corporation of New Jersey subsidiary

companies as of Dec. 31, 1933 Public Service Electric & Gas Co.: Common stock.

$181, 500, 000 Preferred stocks.

50, 150, 000 Funded debt.

114, 120, 100 Public Service Coordinated Transport: Common stock (not including miscellaneous stocks).

42, 660, 630 Preferred stock.

36, 562, 500 Funded debt.

28, 735, 700

150,

PHILADELPHIA ELECTRIC CO., EXPANSION UNDER U. G. I. AUSPICES The present Philadelphia Electric Co., the most important subsidiary of U. G. I., is an excellent example of the method by which large and efficient service areas have been built up, with the corresponding benefit to consumers of reliability of service, decreases in rates and extensions to outlying territories previously without service. U. G. I. at one time owned small, scattered electric and gas plants in the suburbs of Philadelphia. These independent units were formed into a consolidated company, leaving Philadelphia proper and one adjacent county served by an indeperdent company--the Philadelphia Electric Co.-and a large suburban area on each side of U. Ĝ. I.'s company served by a subsidiary of still another independent company“the American Gas Co.

Thus three contiguous systems were occupying an area which clearly should be served by one system alone. With this goal in view, the U. G. I. obtained control of the American Gas Co. in 1925, in order to merge that company's operating subsidiary with U. G. I.'s operating subsidiary. In 1928, the Philadelphia Electric Co. was acquired and in due course the whole area was consolidated by the merger of the various operating companies into the present expanded Philadelphia Electric Co.

Thus what were once some 60 individual companies, mostly under different ownership, have been brought into one large company serving some 2,000 square miles of territory at rates from 40 to 60 percent lower than previously. This one company serves 70 percent of the farms in its territory. 1 Merged into Niagara Hudson Power Corporation in October 1934.

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