Sewickley Herald

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" Pear no man, and do justice to all men."
Vol. IV
SEWICKLEY, PA., SATURDAY, DECEMBER 29, 1906
No. 18
Gas Octopus
Completes Plans.
Serftas Out Rosy   Letter to the
Stockholders.
The Manufacturers'Light and Heat Company, over the signature of its president and secretary sends out a detailed letter to its stockholders. It is a rosy communication and speaks of the possibilities of there being, owing to. the increase in
consumption and the priceof gas, more than $1,400,000 available for, divinends in
1907.  '■.•'.
In the meantime the stock market contines to squeeze out the water, and the
price of M. L. & H. was down to 14.
The local situation in the affair has presented no new phase other than that
the committee has placed the matter in the hands of one of the best attorneys in
Allegheny county, who is dilligently working on the matter. This step was taken
after Mr. Thomas Paeterson had given his opinion and withdrew from the case.
Consumers in the valley should not pay their gas bills until the last day of grace,
which is the 10th of the month. However, should it be paid before, it will not alter
the coming litigation authorized by the people at the recent public meeting.
The Gas Company's letter follows:
Officers of the Manufacturers' Light
and Heat Company have issued the following statement to stockholders:
So many false rumors have been circulated with reference to the financial
and physical condition of your company
that it is thought wise to make a statement of facts. •    -    "
Distribution of Payment of the Floating
Debt.
The amount of gross floating' debt on
November 30, without deducting cash
on hand and accounts receivable, was
$4,188,960.50. Of this amount $1,171,-
224.02 was on long time paper running
until 1910. The remainder was carried
"in bank. Some of the bank loans have
since been peid. The whole indebtedness has been arranged by agreement
with the Colonial Trust Company so as
to be distributed in s nearly equal payments during the five years, or $700,000
each year until 1911, when the.remain-
der of about $500,000 matures, unless
paid sooner.
Cause of Creation of the Floating Debt.
After merger of the various plants in
1903 into the Manufacturers' Light and
Heat Company, the various plants had
to be brought into co-operation and
blended into one great operating concern. • New trunk lines had to be built.
The consumers were increased from 40,-
000 to 60,000. The income was increased from about $4,000,000 to over
$5,000,000. To do this there was expended in betterments  and  improve
ments to plant $7,002,277.26 neOfter
deducting $1,645,883.27 charged off for
depreciation. The amount of betterments being made up as follows:
For new lines, pump stations, connections, etc. . $5,273,707 26
For material in new wells .   1,728,570 00
Total   .  .'.$7,002,277 26
The cost of drilling wells is not included, only the material on hand. In
addition to these expenditures the'bonded indebtedness has been reduced from
$10,750,000 to $8,221,000, a payment of
$2,529,000. The actual value of the
plant to stockholders has therefore been
increased during the last three years
by the amount of $9,531,277.26.
During these years as the value of the
plant was thus being increased, it was
thought this floating indebtedness would
be ultimately capitalized either into
bonds or stock, but the present arrangement is regarded as better for the
stockholders, because a portion of the
earnings of the company thus set apart
by this arrangement will soon discharge
the'whole amount of the debt, and interfere with dividends for only a short
period.
Supply of Gas.
During the 12 months immediately
preceding November 30, 1905, this company has supplied a daily 'average of
103,449,000 cubic feet of gas, and dur-
the same 12 months preceding November 30,1906, a daily average of 107,825,-
000 cubic feet, or 4,376,000 feet of gas
each day of 1906 more than in 1905. Its
supply for 1907 is believed to be greater than at any time in its history, and
with it's various gas fields and immense
acreage of developed territory the
company is provided with a sufficient
supply of gas for years to come.
Income and Fixed Charges.
The present income of the company
is larger than at any time in its history.
It is about a million dollas per annum
in excess of its first year's operation in
1903. The number of consmers has increased each year, and is greater now
than in 1905. The consumption of gas
for 1907 will exceed that of 1906.
The income of 1907 must, therefore,
exceed by a large amount that of 1906,
even if the price of gas remained the
same. The gross receipts for 1907 are
estimated the same as for the twelve
months, ending November 30, 1906—$5,-
189,717.48.
The fixed charges, including
bonds, floating debt, interest, etc., for 1907, are $2,177,197 30
Operating expenses for
1907, estimated the same
as 1906, 1,448,633 10
Total   ........ $3,625,830 40
Surplus earnings for 1907,
after making  payments
of  all fixed charges and
operating expenses .  .   . $1,563,887 08
The company will expend
or set apart each year
out of this amount perhaps 20 per cent, of the
gross income for betterments and additions to
plant, or about $1,000,000 00
This will leave a net surplus
the first year after deducting this $1,000,000 of 563,887 08
which, with the cash carried over from 1906 to
1907 of about       500,000 00
will give a surplus at the
end of 1907 of  .  .  .  .. $1,063,887 08
These figures cover every possible
contingency, after deducting 20 per
cent, of gross receipts for betterments
and improvements, and are based on
prices of gas for 1906 and the earnings
of that year, although it is known and
shown that the earnings for 1907 will
be larger, both because of better prices
and more gas being sold.
Each year thereafter this surplus will
be greater because of reduced payments
of bonds and interest, thus:
Payments in 1908 less than
1907 .........*.$ 85,154 98
(Continued on Page 12.)
GERTRUDE ANNE POLLINGER.
Gertrude Anne Pollinger, the only
daughter of George and Jessie Pol-
linger, of Hazel street, Quaker Valley,
died on last Wednesday morning, December 26, at two-o'clock, of pneumonia, at the age of five months and nineteen days. Mr. and Mrs. Pollinger
have the deepest sympathy of their
friends in their great bereavement, as
their little daughter had brought so
much sunshine to their home. Interment took place yesterday morning.
/
Heptasophs.
Sewickley Gonclave No. 93, Improved
Order of Heptasophs, at the regular
meeting, held their annual election for
the coming year and the following officers
were elected: Archon, John Downing;.
Secretary, F. B. Goff; Financier, Geo. H.
Hegner, Sr.; Treasurer, S.T. Shoop; Provost, D. B, Porter; Prelate, S, G. Dodge,
Inspector, George M. Becker; Warden, I.
Pherson; Trustees', William Duncan, E_
F. O'Laughlin; Sentinel, William F. Mc-
B. Gray, John L. Kochenderfer: Representative Supreme Conclave, at Atlantic
City, June 11, 1907, George H. Hegner,.
Sr„ with E. B. Gray as alternate. It is
expected to have an open installation of
the new officers on January 24, and a.
general good old time celebration be held
at their Gonclave room.
Jottings.
The 56th anniversary of Mr. Way's
Young Men's Bible Class will be held in
the Y. M.G. A. Building, at 9.30 Sunday
morning. Every member is urged to
come and bring his male friends.
The Pittsburg Lyceum will play the
Sewickley Independents at the Garage
Hall, Monday evening, December 31.
Mrs. Charles Doyle, of Little and El-
wick streets, fell down stairs -on Christmas day, and severely injured her side.
A successful surgical operation at
Hegner's Home Emergency Hospital, was
performed by Dr. Walters, who was assisted by Dr. Graff, on Frank Hegner,
who was" injured a year ago while playing on the foot and basket ball teams.
Master Frank is very sore and sick at
present, but is expected to be out and
about in a week or ten days.
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