Show PUBLIC UTILITIES ON SOUND OASIS BASIS I SAYS EXPERT Special Dispatch C BABSON I RK P Rl Mess Ma 1 s The Th The recent strength aud and popularity popularity popularity larity of ot certain public li s h ii is brought this thle group ot of o securities to the front In tOte the Investment smirk mark market et et The statement on the thu th outlook for tor po power er and traction Is Issues sur nad today by by RogerS Roger S W Balison the statistician Is ther therefore fore ot of o unus unus- unusual unus- unus unusual unusual ual interest Twenty T 0 a ro Investment ban kelS were booming traction so- so se securities st says 18 Mr Babson liabson ro- ro roday roday day ro-day day this group I Is in the tho back back- background background ground and power and light is- is issues Is Issues sues hold the center ot of the tho pub pub- public pub public lic utility stage sta-se these t two tao 0 group tire are by sorT ery different factors and their fortunes under any given combi combination nation of ot fundamental busIness and financial condition are vas vis ly Iy different rowER POWER AD AND LIGHT I I The Tho power and nd light group en- en en enjoys joys three distinct advantages e Il as compared with nith tractions actIons and tail a large item Item Itom In the operating cost costs ot of railroads and traction properties Is iCi- iCi veri r small In light and po rosier power er plants agee are not a 8 a factor actor and Increases In payroll mal make e no particular tilt tilt- dif difference terence ference In earnings The tact fact that labor has not been deflated to an appreciable extent elent since the war and post war boom has pfd ped al rail ali rail and traction proper proper- properties properties roper roper- ties tics In tact fact has wrecked reeked man many of oC I them Light an anc and power Jower compan companies ics ies meantime have havo enjoyed a ft de- de dechine de decline cline chine in operating costs coots due duc to the I deflation of ot commodity puce pi ice Ices Cloe Closely Closel allied with Ith the is age problem I ts is the he he question ot of ser ser- serlee ser service vice lee Hei Iee Heie e again the light lIht and andI power companies ae le a dIstinct ad over oser the railroads both I slam cam and electric The president pre ot of a 1 light company for tor I can eln press the button In iii hl his 1 Oan n home aM aN can tell from tao tae ser ser- ser service I vice site that h he himself Is getting Jut just everone everyone In hl his I Is I leeching Ing from lii Ills hh corn eom- com company I Ian many pany His repair and rom plaint departments nt ate a e rela relatively small mall and can be elos ly cn can cai know V that thee PV ry try one lute lne lot of his customers Is h getting II courteous and efficient SN Ic Ih the company A thousands of station agents agent freight handlers and trainmen tr In Convict contact Ith Its lis pub pub- I lic lie public hn lies has no assurance that th I Is I is ten ten- rendering ren rendering dering the kind of seT service t at iho nt may earnestly dr I to gh give gise c A single employ e through I hi thou thoughtlessness or cal t lene can make enemies for tor the v hole system Tractions suffer Bueter the ame handicap to a smaller extent The problem of creating and Ine Ing good will Is la extremely for tor railroads and ti actions and el easy for tor light ard power po companies V i W LW SITES PL PLA I 11 D When potential ts mail-ts ore are considered the average power and light company has much mc in m ro re room for tor e expansion than either r ot of these other groups We We II ale flie u but a small fraction traction of the poten poten- potential power New hydro 10 power er sites can be bo developed and lid output be Increased to take care of an aneer anever er eier expanding demand while he ho new mercury boiler presents Ion won wonderful opportunities In connection with Ith steam power The lab lale Dr when hen visiting the tue Bb son son eon Institute last lat de- de described de described scribed a n relatively simple method allow athow ot of construction which would at- at al low how the a average home to bo to heated he economically by electricity Within the next nt 20 years v e 0 may tee see this don done on a largo scale and It If so eo the power and light Ih-ht companies will be called upon t to supply the heat as aswell aswell well ell a as light lIht and 10 power er ND PI Railroads will III enjoy an In- In InCI In-clease In CI eaB In freight traffic as population lation becomes more den dense denic tn an ani I 1 as the volume of ot general business In- In Increases In Increases creases but the they have no for expansion as ns that open to tills tin favored ored cia class of utilities Tiac- Tiac Tiac tion have He suffered a d decline In due to the advent of t the tho automobIle As to the thc future t of the auto bu bus only the most daring cares to forecast This does not mean an however that our traction properties will go out of existence nor doe does docs It t mean that t the handicap applies to In all nil alike I LIVES LPES prOm From the tho Investment estment le traction tra hould be divided Into three havethe distinct groups We have the strictly urban lines of ot ou our large cities that will continue to bo be a necessity y beca because they offer rapid and economical transportation In congested districts The volume ot of business allows allowa them to carry Poe pas passengers pas at a low rate Their I will grow as our cities grow and they 1 will 1111 Increase Inere in us usefulness as aa congestion becomes greater The second elas class of tractions embraces the track suburban dines Many lIany of ot these are arc being operated by ItI ItIs a receiver at this time and It I probable that practically all of them b be I will replaced by tl U e mO 1 iwo iwo- mo tor tot motor bus One man mn cars havo hn ov p p-ov-cn p ov- ov oven en a temporary relief relict In many cases but the tendency at present I Is to Increase the pay y o of the one man lt Irr so that within I hf a few y years 1 the pa 1 prom promises Ies to b bo as large I a as ever and nothing of ot permanent value will Ill have ha 0 been 1 There here I Is no reason however why hy they should not operate their own bu bus lines They may be able to tomake tomake make the motor bu bus show sho a profit prot where It has baa not neen Deen possible to break brenk e even esen en in th operation of electric cars CHEAPER TIT STEAM There ii Is la however howe a third clues claes s of or traction tractions which the double track high hith speed Hubur- Hubur ban electric lines which I Is worthy ot of special sp study I have ha examined one of ot these properties I operating peng passenger and freight service between tv two 0 cities 40 miles apart The figures show I this electric line IIno linean an pa early cany both passengers and freight than It Its steam competitor It ac- ac ac actually pro provides Ides the most mont e economical cal transportation bel between een these two cities and no auto bus con compete with Ith it as to speed As AB long ABlong as such a a condition exists II its maintenance I Is not only justified but It should be able to operate nt at nta ata nta a sound profit I believe that this class Hackline of ot high speed double hack line Is fundamentally sound and 1 that It will gain business rather than lose it over the tIme nt ten yea The securities of ot these Intel urban s to together gether th T th those thoo jf dt t h the strictly 1 urban transit companies Justify the serious consideration of ot s c investor Investor tor and should be Included In a abroad abroad broad brod list of ot public utility hold bold holdings holdings ings The The power and light Issues face tace one uncertainty and that Is tho development of adverse legislation and ond unscientific rate regi The Th soundest public corporation in the tho country can be seriously crippled hv un g governing Its charges for tor service soT The railroads and nd flOSt of the traction tractions companies have been through the mill hull ot of o this What will III happen In the tho power and light field no on one can tell but tho best hest Informed specIalists in III inthIs Inthis this line ate ale a e considerably a aged by the tha South n Dell decision It Is la hoped tInt that this thil industry will not be bo by too much go government municipal Intel intes In any anye e ont a diversified list lIt of P public utility holdings holding should not be bo af at at- at affected to any extent by ring cases of unjust political at rate mik mak ing Moreo Moreover er the customer own own campaigns now In progress should serve servo as a splendid or insurance against th one din dan dinger danger ger General ral as reflected b the tho I Is runn at I 12 per cent below helow normal normah an all Im- Im Im Improvement provement of 1 I per cent over last It week 5 I |