The Making of Bobby Burnit

The straightening out of the waterworks matter left Bobby free to turn his attention to the local gas and electric situation. The _Bulletin_, since Bobby had defeated his political enemies, had been put upon a paying basis and was rapidly earning its way out of the debt that he had been compelled to incur for it; but the Brightlight Electric Company was a thorn in his side. Its only business now was the street illumination of twelve blocks, under a municipal contract which lost him money every month, and it had been a terrific task to keep it going.

The Consolidated Illuminating and Power Company, however, Bobby discovered by careful inquiry, was in even worse financial straits than the Brightlight. To its thirty millions of stock, mostly water, twenty more millions of water had been added, making a total organization of fifty million dollars; and the twenty million dollars' stock had been sold to the public for ten million dollars, each purchaser of one share of preferred being given one share of common. As the preferred was to draw five per cent., this meant that two and one-half million dollars a year must be paid out in dividends. The salary roll of the company was enormous, and the number of non-working officers who drew extravagant stipends would have swamped any company. Comparing the two concerns, Bobby felt that in the Brightlight he had vastly the better property of the two, in that there was no water in it at its present, half-million-dollar capitalization.