53
In the past year, the depreciation reserve has been equivalent
to 2%<^ on the capital stock, leaving the net earnings for 1898 on
stock, after excluding depreciation charges, over 10^.
In accordance with the general plan of providing reserve
accounts, the Company began in 1895 an insurance reserve
which has now reached $50,055 and is increasing at the rate
of approximately $io,ooo per year. The high rate of insurance
at that time and the co-insurance requirement made the cost of
insuring the fire-proof stations altogether extravagant, and it was
therefore decided as the Company had so many stations, it
could afford to become its own insurer and set aside the
equivalent of premiums for an insurance reserve. The Com¬
pany's property, outside its main^tations, has been kept insured
in the regular companies and';sQme."ihsu3'a|i^c;'-,'ha-s also been
carried on the main stations, the differehte-b&twreen^ these pay¬
ments and full insurance premium^;tjeiijg^credited to the re'serve
account. The insurance fund has be^n-^/n^ested "COpserv:atively
in outside securities, ° ''■'°'' ° :
Company PRO^&R|Tfj' .\ =-„ ,
It is by the application of the princi^les°''a5oye^ c'iled, and
through the co-operation of the men above named, that the Com¬
pany has steadily held its own as the largest electricity supply
company in the world, to the benefit of investors in its securities
as well as of its customers. The following table gives the story
of the development of the Company, from the investor's point
of view, since its start in 1883 ;
Edison
Income
Capital,
Interest
Surplus,
Earn¬
ings on
Earnings.
(Gross.)
Sources.
(Net.)
Earnings.
Loan and
Share.
and
Dividend.
incl. Deprec.
Charges.
Stock,
incl.
Dep.
1883
1884
T8SH
$53,089.65
111,672.57
127,619 71
*$4,457-5D
33,222.54
52,610.68
*l4.457-50
33,222.54
27,972.68
000
3
5
$3,713 28
1.000
000
§24,638.00
i^
tK«(S
i,'2,695.52
4,884.34
70,051.05
1,000
000
35,328,44
34,722.61
7%
1HS7
t8RF
11,367.62
89.069.96
2,417
800
41,464.64
47,605.32
3
1%
208,210.78
18,090.98
116,235.26
2,847
800
56.229.98
60,005.28
4
OS
tJ^Hq
313,254 13
16,51947
124,031.97
2.847
800
102,637.64
21,394.33
4
,3iS
tKiio
446,268.61
229,078,80
6,096
200
126,671.64
102,407.16
^
0%
tHqi
635.575.49
39,929.94
347,228.63
400
289 513.61
57.715 02
4
bS
iHn?
20.446.02
475.137-61
9,200
000
372,742.33
102,395.28
.S
7%
laq^
52,185.96
605,642.72
11,500
opo
595,995.33
9.647.39
5
8S
i8q4
1,369,066.72
95,269.72
789,466.58
12,250
000
683,462.67
106,003.91
7
3%
iKq=;
i,";44,822.78
130,408.67
915.758.74
14,368
000
744,759-50
170,999.24
2«
^Hqh
U5>323.89
1,080,156.94
14,380
ODO
798,320.00
281,836.94
y
w
1«Q7
2,015,102.09
175,658 82
1,261,497.04
14437
000
801,174.50
460,322.54
II
8;^
1898
2,423.795.33
1-282,709.62
1,487,128,05
l5,7<'o
000
867,743-50
619.384-55
12 6^
* Deficit,
■F $117,744 Income from Subway Investment, is included in outside ear
1898, hut not in 1897.
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