industry because of belief in its stability and safety. In fact, one part of the public loans to or permanently invests its money in our industry for the benefit of all the public, so that it may be furnished with the facilities so absolutely necessary to the country's development. Their only direct reward is the wages of capital-a reasonable return on the investment. Their indirect reward, in which they share with everyone, comes from the general improvement in both the business and social conditions of the country.

It is our duty to see that this money is judiciously spent on property that can be economically and efficiently operated, and to plan and scheme to bring to the properties such different classes of business as will give the greatest return on the dollar invested. By so doing the investing public will be absolutely assured of the return on its investment and the public as a whole will receive our service at the lowest rates possible, consistent with such a standard of credit for the industry as will always attract new money to provide for the continued demands for enlargements and extensions made upon it by that same public.

Another heavy obligation that rests upon us is to do everything within our power to give the public the most perfect service possible. Where rates are adequate there can be no excuse for poor service, except for conditions over which we have no control, and everything within reason should be done to guard against even these. Where rates are inadequate, it is our duty to the public to impress upon it that inadequate rates really do the public the greater harm, as it then becomes impossible for us to secure. the new money necessary to provide the enlargements and extensions necessary for continued good service. We must not, however, use this as an excuse for anything below the most perfect service possible with the means already at our command. While the public thinks little about good service, bad service is synonymous with bad public relations.

On entering this period of vast money requirements, we should give this question of our public relations the most careful consideration, as upon it very largely depends our ability to successfully care for the anticipated requirements of the public. Under present regulatory conditions the public, through its representatives, determines the class of service we shall give, the rates we shall charge and the amount of securities we shall issue. These representatives cannot help but have their judgment more or less affected by public opinion. Equally so, those who use their erroneous ideas as to the utility busi

ness in political campaigns are catering to an existing public opinion that we, largely by our silence, have allowed to grow. The investor would be more easily attracted to our business, which is one affected by a public interest, if he knew that it had a generally favorable public opinion. It is our duty to ourselves as honest business men, to our industry, as a legitimate business, and to the public itself, which is so dependent upon our industry, to do everything in our power to bring about this condition. Towards this end there was authorized at the Pasadena Convention a new National Section known as the Public Relations Section. In the work of this Section we should try to bring to bear the greatest minds of our industry. It was rightfully provided that this Section should be inter-locked with our Public Policy Committee, as the question of public relations necessarily must receive considerable attention at the hands of that Committee.

In this particular work there is room for cooperation within the industry and also for co-operation without the industry with other branches of the great public service business of this country. It must, however, be the kind of co-operation in which those co-operating go hand in hand in sharing the responsibilities and the risks of the policies which they mutually inaugurate. An example of such cooperation we have seen within the industry during the past year in which the manufacturers, the supply dealers and the contractor-dealers have gladly cooperated with your Association, not only with their energy, but also with their money in the Good Will Campaign which has been running during the last few months. It must be the kind of co-operation that is slowly but surely being formed between our industry and the telephone industry in solving the problems of inductive interference, which is so important to both of us in that it affects the service. which we are able to give the public. This Association stands ready, as I think it always has, to cooperate with any other similar association on a basis. as above outlined-mutual co-operation for mutual benefit.

During the past year various States have agitated the question of a change in the public utility laws so far as Commission regulation is concerned. In most of the States it has been only agitation. In one State it resulted in the abolition of the State Commission for the regulation of utilities, but it seems to be the consensus of opinion of those informed that it is only a matter of time when regulation again must take its place, as it should, in the advancement of the development of that State. In

other States the agitation has taken the popular line of home-rule by municipalities of their own utilities. In another State the reverse position has been taken, home-rule being submerged into State regulation. It cannot be but that the exponents of the homerule ideas have lost sight of the great development in this industry that is taking place every day. They are not to be blamed for this, for many within the industry have not a full insight into these great developments. Few of us have any idea of the extent of the transmission systems built in territories other than those in which we ourselves are particularly engaged. There are probably few men in this room who appreciate that, by building less than seventyfive miles of transmission system, St. Paul, Minneapolis, and beyond can be connected through Chicago to Louisville, Cincinnati and other cities of the Middle West. One is surprised to learn that there is a system in the State of Texas having over 800 miles of transmission lines serving approximately 90 communities. Such developments have not been confined to any particular section of the country. They may be found in the East as well as in the wellknown extensive transmission systems of the far West. It would therefore seem that the day of municipal control of utilities has gone and we are in the period of State control, with the possibility that in the time of many of us here we shall have reached the stage where, due to further developments, interstate control may become advisable.

With the passing of the period of municipal regulation there has necessarily largely passed the day of municipal ownership. The public must be informed that the only way by which the medium-sized cities and the smaller communities can be provided with efficient electrical service at reasonable rates is by the massing of the production of energy in great central stations located where their energy can be generated at the lowest cost and transmitted thence over large areas of distribution.

It would be ungrateful of me to close this address without expressing my great thanks to Past President E. W. Lloyd and the ladies and gentlemen who have and are assisting him with all the local arrangements for the Convention and for the entertainment of those attending.

THE CHAIRMAN: Gentlemen, I am sure there is much concrete material in the President's address concerning which the Association will desire to place itself on record, and I appoint the followingnamed gentlemen as the Committee on the President's Address:

Messrs. W. C. L. Eglin, John A. Britton,

E. W. Rice.

The President then took the chair and read telegrams of congratulation from Elmer A. Sperry, who was Chairman of the Call of the First Convention, and Charles S. Brush, of Cleveland.

THE PRESIDENT: The next order of business is the report of the Treasurer, Mr. H. C. Abell, American Light and Traction Company, New York.

In connection with the report of the Treasurer, I would like to call your attention to a few facts. If the activities of the Association had not been increased the dues would necessarily have been increased to take care of the normal business of the Association. On July 1, 1919, the activities of the Association were very greatly increased, but it was not possible to increase the dues until the first of this year. Therefore, it has not been possible to apply the increased dues to the past year's activities.

The end of the last administration found a deficit of $68,000 in the financial records of the Association. From the beginning of this administrative year it was necessary to raise $75,000. It was thought advisable to reimburse the treasury, and a special assessment was made under Chairman McCall of the Finance Committee, who raised $93,500.

That put the treasury of the Association in first-class shape.

I might state that on April 30th last the monthly report of the Treasurer shows the balance to the credit of the Association in cash $170,000, and in addition thereto there is about $74,000 on a par basis of securities held by the Association, and it looks as though the collections for the next two months will meet the expenses. It looks now as if the present dues will take care of the normal activities of the Association in the future.

THE PRESIDENT: We will now hear the report of the Finance Committee. I am sure that you will be glad to hear from the man who raised $93,500. Mr. Joseph B. McCall, Chairman of the Finance Committee, will now make his report.

and other representatives of this Association by the National Association of Railway and Utilities Commissioners and the Investment Bankers Association of America to appear before these organizations have promoted better understanding between the investor, the regulator, and the electric light and power company; all in the interests of efficient service to the general public.

Time will not permit of my detailing the degree of success attained in these several activities, nor is it proper that I should cover them, since they will be dealt with individually in the several reports to be presented before this Convention.

However, these all are matters of the utmost importance, not only to members, whether they be electric light and power companies, manufacturing companies, jobbers, or contractors, but also to the public, as all have a direct bearing upon the character and class of service rendered to the public and upon furnishing that service in an increasingly economical way. In presenting my report I therefore find it necessary to touch upon these and other important matters in describing the work of the

year.

Expanded Association Work

A greater Association, with broadened activities and more effective national influence, has resulted from the year's work. This was made possible by the machinery set in motion immediately prior to and during the Forty-third Convention of the Association at Pasadena, California, May 18-22, 1920. At that Convention a plan was crystallized calling for increased activities along many lines, including not only those of the Technical, Commercial, and Accounting Sections, but also those of the newly-created Public Relations National Section of electric light and power executives to deal with public relations and public policy as they affect the general public and the allied electrical industry. Much of the work planned at that time has been gotten under way and is gathering weight and momentum. The Electric Vehicle Section has been consolidated with the Commercial National Section.

By unanimous vote of the membership, the electrical manufacturers became active members of the Association and are represented on the Public Policy and the National Executive Committee. Electrical manufacturer members have taken a very prominent part on committees and in conferences in the various Geographic Divisions during the past The national co-operative good-will adver

year.

tising program of the electrical manufacturers is one of the noteworthy achievements of the administrative year, which will be fully reported before the Public Relations National Section by the Chairman of the Electrical Manufacturers Advertising Committee.

In addition, there have been many detailed changes in the Constitution which, among other things, provide for a revision of the form of organization through the forming of the country into twelve Geographic Divisions and the inclusion of Canada, as a whole, as the thirteenth Geographic Division.

Although the Constitution was not amended until May, 1920-these amendments becoming effective July 1, 1920-some of the increased activities were already under way, having been started by special authority of the National Executive and the Public Policy Committee and, therefore, were carried on for practically the entire calendar year of 1920. The Association has functioned since upon the basis of increased revenue from revised dues.

Geographic Divisions

Ten of the thirteen Geographic Divisions provided for in the Constitution already have been organized and the remaining three are in process of formation.

The purpose of the Geographic Divisions is primarily to unite member companies more closely in a national plan of Association organization which will decentralize many of the national activities. The result sought is the bringing about of state, division and national co-operation in upbuilding the industry, so that efficient and economical service may be rendered nationally and locally to the consuming public at the lowest reasonable cost compatible with national electrical progress.

When it is considered that only five State associations were affiliated with the N.E.L.A. prior to the year 1920, and that only four Geographic Divisions were functioning either wholly or in part, it is apparent that the officers and membership of the Association have actively undertaken organization work during the year. It was realized early in the formation of Geographic Divisions that no plan should be adopted which would destroy the efficiency of the active State associations, or that would require the organization of State associations where the necessity for such associations does not exist.

Therefore, the plan as finally carried out provides that the Geographic Divisions may be composed of the membership of State associations or of

delegates, or, in divisions where no State associations exist, through the direct membership of the companies and individuals in the Division. This elasticity in the organization is largely responsible for the results already accomplished in the national field work.

During the year 1921, all ten Geographic Divisions already organized have held or will hold conventions or conferences. It is my pleasure to report that the State associations or sections have tied into the divisional or national program in a comprehensive manner and are assisting in carrying on the work throughout the country. They in turn are holding their own conventions or conferences. Officers of the National Association and representatives from the executive offices have attended State and Geographic Division conventions and conferences, and also have been in conference and consultation with committees and member companies throughout the United States and Canada. Manufacturer members have enthusiastically entered into the geographic, State and national activities of the Association.

Work done in the Geographic Division reflects itself in the work done by the National Section Executive Committees and Subcommittees and in the National Special and Standing Committees. Many of the reports to be presented bear the indelible imprint of territorial conditions and situations, the national aspects of which have received consideration in the committee rooms. These reports are extremely interesting and of benefit to all branches of the industry. It is my sincere hope that all delegates present will attend as many Sectional meetings as possible, that they may absorb the progressive thought of the industry as voiced by those reports and discussions. It is only through such attendance that the membership, and particularly member company executives, can realize the constructive achievements of the year.

Departments at Headquarters

In accordance with the revised Constitution, the organization at the executive offices in New York City has been divided into four departments-Engineering, Service, Committee Activities, and Publicity.

The Engineering Department, which is directly under the Technical Section, and the work of which includes co-operation with committees handling inductive interference, safety rules, standardization, etc., has had an extremely active year. Direct service has been rendered many companies, and

through the study of local conditions in several parts of the country the Engineering Department has been able to assist in solving problems peculiar to those sections and at the same time to develop much of interest and assistance in national problems. This department has tied in closely with the Service Department, through written reports to and conferences with committees and company members.

During the year ended March 1, 1921, the Service Department rendered service and replied to inquiries in response to more than one thousand specific requests for member companies. Inquiries were received from every State in the Union and the assistance desired or information requested pertained to practically every phase of electrical development and practice. The Service Department supervises the publication of Rate Research and the Rate Book, under the supervision of the Rate Research Committee. This portion of the work is carried on through constant correspondence and communication with member companies, and the Rate Department is continually called upon for assistance in the development of rate structures and the preparation of cases before commissions and courts. This department also has been of assistance to the Accounting National Section in the formulation of the uniform classification of accounts, co-operating with a special committee from the National Association of Railway and Utilities Commissioners. The Water Power Committee of the Association also called upon the Service Department for assistance in accounting and other matters pertaining to rules and regulations in a series of hearings before, and conferences with, the Federal Power Commission and its staff.

Co-ordination of the committee work has resulted. from the establishment of a Department of Committee Activities, much duplication of effort having been obviated through the co-operation of the chairmen of the National Sections. As a result of the year's experience of the Department of Committee Activities, definite recommendations from this Department will be presented for the consideration of the incoming President and Executive Committee.

Under the supervision of the officers of the Association and the Executive Committee of the Public Relations National Section, the Publicity Department has carried on a national good-will movement which has progressed very satisfactorily. An exhibit of some of the publicity material prepared and sent out and of copy actually used in the Co-operative Good-Will Campaign of the N.E.L.A. and man