Electric Equipment

In the U. S. two highly important manufacturers of electrical equipment are the General Electric Co. and the Western Electric Co./- Both apply the far-reaching scientific discoveries relative to electricity to practical apparatus. Both have huge laboratories where many new electrical facts have been revealed, where many new applications have been devised. In fact General Electric has its own private, fully staffed university at Nela Park, Cleveland. For both firms the chief purpose is to sell electrical equipment. Western Electric specializes in the telephonic field. General Electric covers practically all the others. Last week the 1925 profits of both these companies were reported. General Electric profits available for dividends, after interest and all charges, amounted to $38,641,217, equivalent after 6% cash dividend on special stock, to $20.47 a share on the $180,287,046 of $100 par common stock outstanding. The company is in excellent financial condition--liabilities $39,829,694, assets $270,271,884. Its principal financial activity during the year was the distribution to shareholders of its holdings in Electric Bond & Share Co., a concern which controls directly or indirectly some 100 electric power, street railway and gas companies between Canada and the Gulf and between the Atlantic and the Mississippi. Its relations to General Electric were so generally criticized that the parent company of its own volition cut it off (TIME, Jan. 12, May 18, 1925). The Western Electric sells most of its products to the Bell system. Whatever it sells elsewhere in the U. S. it markets through the Graybar Electric Co., Inc. (TIME, Jan. 4). In foreign fields it sells through the International Standard Electric Corp., formerly the International Western Electric Co., Inc. Last year's net income of Western Electric was $14,283,302 after interest and other charges. This equaled $17.40 on the 750,000 no par common shares, of which the American Telephone & Telegraph Co. owns 98 1/3%, the balance belonging to 30 other holders.

/- Among the great firms in this field are, of course, the Westinghouse companies.