Utility Loans

Governments often come to the aid of their country's industries. Seldom do industries render direct financial aid to their governments. Last week four great electric corporations -- Siemens-Schuckert, German General Electric, Bergmann Electrical Co. and Brown Boveri--lent $12,000,000 cash to the German State Railways, to electrify roads in the south of Germany (particularly the Augsburg-Stuttgart line) and incidentally reduce unemployment by providing work for 10,000 men for a year and a half.

In Berlin the Prussian Electric Co. made an even more direct governmental loan by advancing $5,000,000 to the municipal government to pay current bills, police wages, etc. etc. In return, Prussian Electric is to receive a large interest in the reorganized municipal gas works.

German electric companies could afford this. It has been a lush year for their stockholders. German General Electric recently declared a 7% dividend. Last week Siemens-Schuckert declared 7 1/2%. Potent Siemens & Halske, nearly 20% of whose stock is owned by U. S. individuals and investment trusts, cut a 14% melon.

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