STUDIES IN SECURITIES 
revenues in 1926, 77.8% in 1925, and 80.7% in 1924; 19% shrink- 
age means $1 more common share earnings, regardless of possible 
benefit from rate readjustments. The 7% preferred stock is an 
unique investment, with the privilege of receiving 3% additional 
after 7% on the common and equal share after 10%, under which 
from 1902 to 1920 a total 89% was paid annually. In the common 
stock. investment and speculation are nicely combined. 
Columbia Gas & Electric Corporation 
After a quarter century of separate development the properties 
of Ohio Fuel Corp. (itself a 1924 merger) were consolidated No- 
vember 1 last with those of Columbia Gas & Electric Co. and the 
new Corporation took the latter name. Advantages to Columbia 
are evident herein: for the new company versus the old company, 
the requirement for rentals, bond interest, preferred dividends, 
and $5 on the common shares is increased 1.8 times, comparative 
with increases 2.7 times in gross and 2.1 times in net earnings and 
3.4 times in acreage of lands representing the principal earning 
asset. To accomplish this, Columbia Gas in effect added only 
$210,000 to fixed charges and increased preferred stock from 
$23,860,000 7% to $95,185,000 6% and common stock from 
1,500,000 to 3,000,000 no-par shares (since increased by issue of 
375,000 shares at 60), thereby improving an already strong cap- 
ital structure. Since rentals, interest, and preferred dividends take 
only 429, of current earnings it is clear this public utility is 
held on ample margin by common stockholders. 
Revenues aggregating $92,120,000 in 1926 came mostly from retail 
distribution of natural gas to 4,400,000 population in Ohio and 
adjacent states and electricity to about 1,100,000 in Cincinnati, 
Dayton, and vicinity, with wholesale of both not inconsiderable. 
Of the 4,860,000 acres of land held 760,000 or less than 169% are 
operated for natural gas and less than 71,000 or 114% for oil. 
Accordingly, future gas supply is assured from the vast land 
reserve, potentialities of which are known, while oil and natural 
gasoline production from a minor status can be expanded almost 
at will. 
Altogether this system property stands on the books at 439 mil- 
lions, as the actual figure accrued during some 25 years, against 
which 121 millions reserve is accumulated. Charges to reserve, 
chiefly depletion of gas, run $2.70 per common share annually, 
and taxes equal $2.50; both are so heavy that relief would seem 
possible. After all charges the 1926 earnings rate was $6.90 a 
share on Columbia Gas common stock while on official statement 
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