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Chapter II. Growth of assets and liabilities-Continued.

Section 2. Analysis of plants and investments-Continued.

Equity in surplus of subsidiary companies acquired June 30,
1924.

Income statements of companies acquired June 30, 1924–
Organization expense_

Increase in plant and investment account from December 31,
1924, to December 31, 1930.

Disposal of securities acquired from Cities Service Co. in No-
vember 1924___.

Explanation of items comprising "total charges

Surplus acquired_____

Earnings receivable reserve and surplus reserve.

Effect of the disposal of securities on the ledger value of the
original acquisition__.

Disposal of the individual companies acquired under the agree-
ment of January 2, 1925----

Adrian Street Railway.

Athens Railway & Electric Co. and Athens Gas Light & Fuel Co

Atlas Chemical Co---

Bartlesville Gas & Electric Co.

Brush Electric Co----

City Light & Water Co__-

Electric Bond Deposit Co--

Meridian and Hattiesburg properties__.

Toledo Beach Co---

Toledo, Ottawa Beach & Northern Railway Co

Other changes in the original acquisition of securities.
Additional stock acquired from Cities Service Co---.
Value of common-stock holders equity acquired___
Sale of securities to Gas Service Co-----

Description of the common stocks transferred to Gas Service Co-
Investment of Cities Service Co. and Cities Service Power &

Light Co. in stocks transferred to Gas Service Co_____
Book value of common stock sold to Gas Service Co-----
Surplus reserves accumulated on the books of Cities Service
Power & Light Co. applicable to common stocks disposed of
to Gas Service Co-----

Securities acquired from Cities Service Securities Co--

Buchanan County Power Transmission Co-.

Bluff City Electric Light & Power Co‒‒‒‒‒

Electric Utilities Co-‒‒‒

Lake Shore Power Co___.

Lawrence County Water, Light & Cold Storage Co....

Benton County Utilities Co..

Taney Light & Water Co----

Sale of properties acquired June 3, 1927__

Additional securities acquired and disposed of during the years

1924 to 1930, inclusive..

Bartlesville Gas & Electric Co----

Capital Gas & Electric Co‒‒‒‒‒

Carolina Engineering & Construction Co--

Citizens Gas Fuel Co---.

Cumberland & Westernport Electric Railway Co--

Danbury & Bethel Gas & Electric Light Co---

Deerfield Electric Service Co---

Durham Public Service Co------

Empire District Electric Co-----

Fremont Gas Co-----

Kansas City Gas Co---

The Knoxville Gas Co‒‒‒‒

Lake Shore Power Co-

Lawrence County Water, Light & Cold Storage Co__

Lenawee County Light & Power Co----

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Chapter II. Growth of assets and liabilities-Continued.

Section 2. Analysis of plants and investments-Continued.
The Ohio Public Service Co-----

The Public Service Co. of Colorado____.

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Formation of East Tennessee Light & Power Co., formerly called

Tennessee Central Service Co-

106

Acquisition of capital stock of Tennessee Eastern Electric Co--

107

Acquisition of Columbia Gas & Electric Corporation stock‒‒‒‒‒
Additional bonds and notes of subsidiary and affiliated companies

116

acquired and disposed of--

Aurora Electric & Cold Storage Co. bonds---
City Light & Traction Co. bond_-_-

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121

Empire District Electric Co. bonds..

121

Fremont Gas Co. bonds_.

123

Knoxville Gas Co. bonds_.

123

Lawrence County Water, Light & Cold Storage Co. bonds.

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Dividends applicable to the period prior to acquisition of sub-
sidiary companies---.

127

Summary of analysis of plant and investment account as at
December 31, 1930----

128

Section 3. Increase of open-account indebtedness from or to subsidiaries___

131

Section 4. Analysis of surplus acquired from subsidiary companies_.
Method of accounting by Cities Service Power & Light Co---
Earnings receivable accrued acquired, subsidiary companies----
Surplus of subsidiary companies acquired____
Equity in surplus of subsidiary companies acquired‒‒‒‒
Surplus reserves of subsidiary companies transferred to surplus
acquired.

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138

139

140

Surplus acquired written off on account of common stock dis-
posed of

142

Equity in surplus of subsidiary companies acquired subsequently
to June 30, 1924___

143

Deficit acquired written off on account of reorganization____
Capitalization of expense and construction charges of subsidiaries
applicable to period prior to acquisition_‒‒‒

Deduction of dividends received in excess of current earnings__
Surplus arising from calculation of reserves of subsidiary com-

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Chapter II. Growth of assets and liabilities-Continued.

Page

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Composition of earnings receivable and surplus reserves_.
Covenants of the bond indenture in regard to depreciation

reserve___.

167

171

Method used in accounting for reserves....

175

Cash dividends received from subsidiaries under the indenture
of November 1, 1924-

180

Method of eliminating the difference between the balance of
earnings receivable reserve and surplus reserve---
Special surplus reserve_-

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Other adjustments affecting the difference between the balance
of earnings receivable reserve and surplus reserve__.
Replacements charged to surplus reserves--.

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Section 1. Growth of capital stock and funded debt of Cities Service Power & Light Co----

196

Classification of securities as of December 31, 1930_.

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Section 2. Securities issued by Cities Service Power & Light Co. from November 7, 1924, to December 31, 1927, inclusive___ Initial issue of securities--

210

210

Twenty-year 6-percent secured sinking fund gold bonds, series A.
Notes payable issued to December 31, 1926_

210

212

Refinancing in the year 1927----

212

5%-percent gold debentures, due November 1, 1952.
Net proceeds realized on 5-percent debentures, 1952_.

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218

Proceeds from refinancing and effective rate of interest thereof.
Advantages to Cities Service Power & Light Co. of refinancing_
Preferred stock issued and retired for the period 1924 to 1927,
inclusive

219

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221

Section 3. Securities issued by Cities Service Power & Light Co. from January 1, 1928, to December 31, 1930–

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5%-percent gold debentures issued November 1, 1929, due Novem-
ber 1, 1949__-

232

Net proceeds realized and effective rate of interest on 51⁄2-percent
debentures, due 1949---

234

52-percent debentures, due 1952, reacquired....

234

Preferred stock issued and reacquired, years 1928 to 1930,
inclusive.

235

Section 4. Issues of capital stock by Cities Service Power & Light
Co____

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Chapter IV. Income, surplus, and return on investment--

Section 1. Comparative statements of income and surplus----
Introduction___

Comparative statements of income and surplus, 1924 to 1930,
inclusive

244

244

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244

244

Gross revenue from 1924 to 1930, inclusive----.
Expense from 1924 to 1930, inclusive_‒‒‒

Operating expenses of holding company

247

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249

Net revenue for the years 1924–30__.
Additions and deductions from income_

Analysis of surplus-----

Rate of dividends declared on capital stock_-_.
Adjustments of surplus 1925 to 1930, inclusive....

Section 2. Revision of net income and surplus_

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Revised balance sheets for the years ended December 31, 1929
and 1930____

262

Summary of appreciation included in assets as of December 31,
1930.

266

Section 3. Statement of corporate income and surplus---

Introduction_____

Corporate net income and surplus, 1924 to 1930, inclusive_----
Explanation by the company in regard to undistributed earnings
of subsidiaries____.

Corporate balance sheet as of December 31, 1930_

Comparative corporate balance sheets of November 7, 1924, and
December 31, 1930_.

268

263

271

273

274

277

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Rate of return on common-stock equity, unrevised and revised__
Rates of return on the investment in Cities Service Power &
Light Co. proper_.

285

285

Rates of return on investment, after the elimination of the ap-
preciation in the value of securities acquired from Cities
Service Co

287

Rates of return on common-stock equity after the elimination of
the appreciation in the value of securities acquired from Cities
Service Co --

289

Chapter V. Consolidated balance sheet and income statement of Cities Service Power & Light Co. and subsidiaries for the year ended December 31, 1930__

292

Adjustment of the holding company's balance sheet before consolidation____

292

Consolidated balance sheets as of December 31, 1929 and 1930-
Consolidation of surplus in 1930.

295

297

Surplus of subsidiaries acquired__

300

Revised consolidated balance sheet as of December 31, 1930,
compared with consolidated balance sheet as of December 31,
1924_

302

Summary of appreciation included in the revised consolidated
balance sheet as of December 31, 1930__.

304

Consolidated income statement for the year ended December
31, 1930___

304

Revised consolidated income statement for the year ended De-
cember 31, 1930_____

306

Rates of return on investment on consolidated basis for the year
1930___.

308

LIST OF TEXT TABLES

1. Number of shares and the par or stated value of the common capital stock outstanding of subsidiary companies, the number of shares, the par or stated value and the percentage of such stock owned by Cities Service Power & Light Co., the principal amount of bonds of subsidiary or affiliated companies, the number of shares of stock of nonaffiliated companies owned and the ledger value of investments on the books of Cities Service Power & Light Co. as at December 31, 1930--

2. Number of kilowatt-hours sold, kilowatt-installed capacity, number of customers and population served by subsidiaries of the Cities Service Power & Light Co. for the year ended December 31, 19303. Quantity of natural and manufactured gas sold in M cubic feet, number of customers, population served, and miles of gas mains operated by subsidiaries of Cities Service Power & Light Co. for the year ended December 31, 1930..

4. Statement of securities acquired in November 1924 by Cities Service
Power & Light Co., showing the number of shares and par or stated
value of common stock outstanding of companies acquired, the num-
ber of shares, par or stated value and percentage of common stock
outstanding acquired by Cities Service Power & Light Co., and the
ledger value of the securities acquired_--_.

5. Statement of ledger values of securities transferred by Cities Serv-
ice Co. to Cities Service Power & Light Co., as of June 30, 1924,
showing the total ledger value recorded on the book of the latter
company, and the amount of appreciation included therein-----.
6. Additional common and preferred stock acquired and common and
preferred stock disposed of by Cities Service Power & Light Co.,
during the years 1925 to 1930, inclusive___.

7. Statement showing additional bonds and notes acquired and bonds
disposed of by Cities Service Power & Light Co., during the years
1924 to 1930, inclusive____.

8. Summary of analysis of plant and investment account of Cities Service Power & Light Co. as at December 31, 1930, showing the amount of appreciated values included therein____

9. Summary of face or stated value of securities issued and face or stated value of securities reacquired, with amount of premium or discount, commissions, and expense for the periods from June 30, 1924, to December 31, 1930--

10. Summary of securities issued and securities reacquired with classifications of consideration received and given for the period June 30, 1924, to December 31, 1930____.

11. Classification of the consideration received for securities issued, and that given for securities reacquired, with the discount or premium, commission, and expense allocated to each class for the period June 30, 1924, to December 31, 1930__

12. Condensed statement of income and surplus of Cities Service Power & Light Co. for the last 6 months of 1924 and for each of the years 1925 to 1930, inclusive (company figures) __

13. Statement of examiner's revised net income and surplus of Cities
Service Power & Light Co. for the last 6 months of 1924 and for
each of the years 1925 to 1930, inclusive____.

14. Examiner's revised condensed balance sheets of Cities Service Power
& Light Co. for the years ended December 31, 1929 and 1930----
15. Examiner's condensed statement of corporate income and surplus of
Cities Service Power & Light Co. for the last 6 months of 1924 and
for each of the years ended December 31, 1925 to 1930, inclusive,
after excluding earnings of subsidiaries which have not been paid
in the form of dividends as of December 31, 1930.......
16. Condensed corporate balance sheet, as of December 31, 1930, com-
pared with the condensed balance sheet of the company, as of
December 31, 1930, showing the eliminations from the latter_____
17. Comparative corporate balance sheets of November 7, 1924, and De-
cember 31, 1930, showing the decreases and/or increases in assets
and liabilities during the period----

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