V. THE RATIO OF PREFERRED STOCK TO 
TOTAL EQUITIES 
The four ratios already described in this bulletin constitute in 
themselves a complete picture of the total equities of the utility com- 
panies. One of these ratios—the Capital Stock—will now be analyzed 
to determine in what proportions it is composed of preferred stock and 
common stock under the various conditions. The ratio of Preferred 
Stock to Total Equities is the one taken up here; the Common Stock 
to Total Equities follows in section VI. 
Since many of the companies grouped all their stock under the 
caption of capital stock and since some companies did not finance 
through preferred stock, only 884 ratios of Preferred Stock to Total 
Equities were obtained. Chart 5a gives the graphic distribution of 
858 of these cases; 26 of the ratios were omitted because they were 
unusually large. 
The mode for this distribution is .156. The degree to which this 
ratio is typical is shown by the percentage of cases concentrated about 
the mode, namely, 50 per cent. This ratio shows a very strong tendency 
to remain in the lower class intervals, as evidenced by the high con- 
centration between 00 and .24. Specifically, 83 per cent of all these 
cases had Preferred Stock of less than .24 of the Total Equities. 
THE GEOGRAPHICAL DISTRIBUTIONS 
Table Vb of the Appendix gives the frequency and percentage 
distributions for the ratio of Preferred Stock to Total Equities by 
geographical location. Because of the irregularity of distributions, no 
exact modes have been calculated. The class interval with the largest 
number of cases and the percentage of cases grouped about that class 
interval for each section are: 
Middle 
East West West South 
Dominant class interval. ......... .... .16—-.199  .08-.119  .12-.139 
Concentration about the interval... .... 479, 509%, 709, 
No figures are given for the East because the distributions for 
that section do not show a tendency towards any central peak. If the 
class intervals for the other three sections of the country are rear- 
ranged. thev follow in the order: 
Went. ovommesnmmesrmus amp ss mus eammss mens 
BOE, 44 nos mm es HRs SESS FRAY BEE FES 4 
Middle West . . . 
Class Interval Concentration 
.08-.119 5097 
.12—-.159 709, 
.16-.199 479,