Newspapers / The Franklin Times (Louisburg, … / May 22, 1942, edition 1 / Page 2
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OUTLOOK FOR UTILITY COMPANIES Babson Forecasts Increased Utility Rates By ROGER W. BABSON Babson Park, Mass., May 22. ? Due to war, we have lost- sight of many activities of the New Deal. Among these is the "death sen tence" provision of the Holding Company Act. In it* recent annual report to Con? grese, the SES stated that there would no moratorium on the "death sea lanes'* j??08a?e the War. Hence. utility , ' BABSON JiSlding CQjupjiD^s may continue to be liquidated. "Among the: most orderly of such break-ups is that which has been taking place lor some time in the North Am erican system. This wag one ol the first great holding companies to bow to the SEC. Stockhold ers will undoubtedly receive far rently quoted price for'tlns stock. T HOLDING COMPANY TROUBLES The gross income of most util ity holding companies is better than ever. They are really suf fering from high earnings which spell higher taxes.7 Hence, gross is up; but' net is off. Operating units of holding companies have in many instances during the past year been called upon by the gov ernment td expand their systems and up their generating capacity for the expanding war program. This has entailed considerable new construction at high costs. Holding companies have, hence, been obliged to go to the banks to provide funds for t'heir subsid iary companies. The majority of the utility hol ding companies have become re conciled to the Holding Company Act and are willing to break up. It must be remembered, however, that there are outstanding in the hands of the public huge amounts of bonds which must be taken care of in some way. Due to the SEC requirements it has been particularly difficult for several past years for these companies to carry on any refunding opera tions. This situation is now worse than ever due to the neces sity of keeping the banking and public market open for such new financing and refunding opera tions as becomes necessary for U. IS. Treasury requirements. TAX SITUATION EASED BY UTILITIES There is many a city through out the country in which proper ty owners think they pay almost no municipal tax due to city-own ed utilities. However, while the property owners in these locali ties may not get much of tax bill from t-he municipal authorities, they are paying taxes just the same. Such taxes are buried in the bills they receive for electric power, gas and other municipal services through the relatively high rates they are paying there for. -In the majority of Instances it would probably be cheaper for most such cities to buy their juice from outside private utili ties. have it delivered to a cen tral switchboard, and distribu;?d ov^r city and town-owned lines. This is true in my own home town where residents enjoy some of tire lowest light and power bills in the country. To aid utility holding and op erating companies now suffering from high taxes. I believe that legislation should be passed to allow these companies rate in creases to cover their tax bill. A customer might get a $6 utility bill a month with a separte item thereon of $2 for taxes. In this way the government could use the utilities as tax collectors in a fair and above-board manner. If the utility companies would vol untarily change their methods of billing or if they were provided with rate increases to take care of a portion of their taxes, both investors and consumers would be trfeat-ed more fairly. Today the utilities are ? being treated like a tax collector who might be compelled to pay all taxes out' of his own pocket instead of being permitted to collect them! RELATIONSHIP OK SEC One thing more. I hear much complaint t'hat the SEC is hurt ing investors by forcing the hold ing companies to dissolve. Let me say from personal experience that the SEC is working hard to protect all legitimate investors. If -the stockholders of the utility companies will follow cheerfully the suggestions of the Commis sion as to swapping securities and purchasing operating companies' shares, they need suffer no 3 WAY RELIEF FOR HEADACHE f*' V ? C Kt! fait h CvsS\ Xst^jes^**60'" CAPUD1NE shrinkage in any actual values they ever had'. I am decidedly bullish on mosv utility operating companies' pre ferred? and some holding com pany preferreds. Ordinarily I do not like preferred stocks. They are a hybrid type of security and generally speaking I was brought up to avoid them. Ordinarily, from an investment point of view, I would prefer a first mort gage bond having a distinct claim upon the assets of a com pany or else a common stock hav ing voting power and a real chance for profit. Today,, how ever, all the stocks of well man aged utility operating companies seem to have discounted the worst. GOOD NEWS AHEAD I have already referred to the remarks of Edward Eiched, for mer Chairman of the SEC. that war conditions would not be al lowed to delay the execution- of the "death sentence" of the Hol ding Company Act. Recently, however, ?dround Burke. Jr. a diitlnguisbed member o J tbe Commission, told the New York .Savings Bank Conference it is un likely that the SEC will require! <ir even permit widespread sales by holding companies which will harm legitimate investors. From the very first I have had confi dence in tbe SEC and believe vthao those who cheerfully follow their ! instructions will pet ou 0. K., provided they subscribe to their proportional Interest in the prop erties that have been separated. ?._Ear jem. tionhlul by the possible effect of inflatltn on the utilities. Ordinarily, they and the railroads would be the worst sufTerers. Yet the New Deal crowd now ts rendering the utilities a i real protection against inflation, i Washington is making a serious effort to help the utilities keep down costs. Hence, the utility cloud is really developing a silver lining! o Unless farm operators tell us about their labor needs and use our recruiting service, we can be of little help to them, says Fay \V. Hunter. Chief. Farm Place ; ment Section. U. S. Employment ! Service. ? o i ? e Farm housewives are being ur ged by home economists to store, dry. brine and freeze garden pro ducts whenever possible, due to | the shortage of canning equip , ment. ! Patronize TIMES Advertisers For County Accountant J. H. Boone Your vote and support ill \ the May 30th Democratic 1 primary will be gTeatly I appreciated. ? - . 4-24-tf J. H. BOONE. > ? f 1 - , ? ? ? i ? TEeTTS: Employ W^T^-'rvTE'e is -responsible for matching garni labor supply and demand so as to prevent as far as possible a surplus of workers in one area while farmers in ano:-her are looking for help. ? ? o? ? ? . Howard Hubbard was crowned 4-H healt'h king in Northampton County after riding his bicycle 25 miles to compete in ths health contest. Tbe United States Employ ment' Service is the key agency for bringing men and Jobs to gether to sj)?ed up the wartime food production program. i MAKE J EVERY * PAYDAY 'BOND DAY A FEW MORE LEFT! GET YOURS and NOW AT THE OLD PRICE 3 - New Washing Machines Old Price 1 - Used Washing Machine (good as new) $45.00 1 - New Battery Radio, (Demonstrator) Old Price $35.00 Now 325.C0 1 - Large Console RCA Radio and Record Player, $119.95 Now $95.00 A few small New Radios $9.95 up 1 - General Electric Mixer Old Price 6 - General Electric Irons Old Price 3 - Universal Waffle Irons Old Price 2 - Electric Toasters Old Price 3 - Electric Percolators Old Price Several Slightly Used Radios (Bargains) | 2 - New Electric Hot Plates, Single and Double Old Price 1 - Slightly Used GE Electric Range, Like New Now $125.00 R A Y N 0 R'S RADIO AND JEWELRY SHOP Louisburg, N. C. "We Sell the Best and Service the Rest" CASH-DKBKl'HL New Bern. ? Miss Mary Louise i LeBruhl, of New Bern, aud J. | Howard Cash, of New Bern and I Louisburg. were married Friday | evening. May 8, at 9 o'clock at | the home of the bride's uncle and jaunt, Dr. and Mrs. C. S. Barker. jThe Rev. Leon Russell, pastor of j Centenary Methodist Church, per formed '.he ceremony. The residence was arranged with white roses, white peonies and lighted candles. Due tfct Mrs. Barker's illness, only members of the immediate family were in vited. ^ The bride wore a yellow crepe ensemble, with harmonizing green and yellow accessories. Her shoulder corsage was of orchids. Following the wedding, the couple left> for a motor trip, af ter which they will reside here. Mrs. Cash, is the daughter of the late Mr. and Mrs. W. J. De Bruhl, of Jones County. She has. made her home here with the Barkers for a number of years. She attended Queens College. Charlotte, and was graduated from ECTC. Afjer receiving a degree of Bachelor of Science from Duke University, she has been teaching home economics, t Sir. Cash is the son of R, Cash, of Louisburg. He attended Buie's Creek Academy and Mas Bey's Business School in Rich mond. He now is oofthected with the T. A. Loving Company at' Cherry Point. Private Jones Ho wonder Print* Jones' baddies art ? wiping hia cookies. Hil mom made them with RDMFORD, the b?kin? powder that contains no alum, never leaves a bitter taate. FREE: Victory booklet of angarlesa recipes ! Conserve supplies Help win the war is your kitchen. Write today. Rumlord Bak ing Powder, Box BS, Romford, R. I. The IT. 9. Employment Service estimates that this year the far mers of the CoUhtry will be call ing for many thousands more workers t>han they employed in 1929, the peak year of food pro duction. _ y ? r O Government entomo.i(>g 1, i t s studying survival of boll Weevils in winder hibernation at the Pee Dee Experiment Station in South Carolina, estimate that weevil in festation this year will be about the same as In 194l> TOO MANY PEOPLE WANT THIS SEAT ON WEEK ENDS There's More Room on Monday , Tuesday, Wednesday , Thursday 'Greyhound is making every effort to stretch its seats to ? held ail the travelers who want to take trips on week ends ? but you can help us ease the congestion. First of all, don't do unnecessary traveling just now ? and, when you do travel, go on a mid-week day if possible. That's the way to make each bus seat work full time. You'll save seat-space for men in uniform (there's a reduced rate for them now!) and for war workers on week-ends? often the only time they can travel. Get information and tickets well in advance, too ? and avoid delay at departure time. And by all mean* buy War Stamps and Bonds with the money you save on Greyhound trips! GREYHOUND BUS STATION Boddie Drug Store Phone 329-1 Louisburg, N. C. GREYHOUND L/NES Ceiling Prices Are In Effect Always at FOXS LOUISBURG S BEST DEPT. STORE There has always been a "Ceiling" on FOX'S Prices But Never on FOX'S Quality. FOR THE HOUSE -T w. h. LUMPKIN ^ ( I wish to personnally thuaic the large number of voters of our County who have assured me of their support on May 30th. To those of you whom I have not had the opportunity to see personally, I assure you that any interest you may take in my behalf will be genuinely appreciated. If elected to this office, which is more important than ever on account of the critical and unpredict able condition^' resulting ffom war, I promise the people of Franklin County that I will continue to work with all the force at my command for the im provement of conditions in the County, State and Nation. My policy shall continue to be that of working in the interest of the working man, wheth er he be on the farm, in the factory or in the store. It shall be my purpose to continue to try to serve the best interest of all the people of our great County and State. In order to co-operate with the Government in the gasoline and tire conservation program, I will be unable to visit all the voters in the County, but assure you of my gratitude for your support. W. L. LUMPKIN The National Jersey Cattle Club show and sale will be held at Biltmore Farms, Asheville, on June 3 and 4. ) II Five 4-H Club sheep projects have been started in Greene County. The 0. S. Employment Service is responsible (or matching (arm effective reciutting and placement service for agricultural workers and growers in every part of the country. There Is no charge for this service to either worke grower. JUST RECEIVED OUR LAST CAR 10-0-10 which we are selling at MARCH PRICES TON $38 .65 We will not be permitted to make truck deliveries after JUNE 1st. WE ARE NOW TAKING ORDERS FOR BARN FLUES And will be glad to have YOUR ORDER EXPERT WORKMANSHIP PROMPT SERVICE DON'T WAIT SEABOARD STORE CO. INC. D. F. McKINNE, President Pay Cash and Pay Leu WHOLESALE ? RETAIL
The Franklin Times (Louisburg, N.C.)
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May 22, 1942, edition 1
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