Mr. Insull Speaks

Few men are in a better position to know the facts about public utility enterprises than Samuel Insull of Chicago, President of the Commonwealth Edison Co. of Chicago, which controls the entire electric lighting business of the city. Accordingly, when Mr. Insull expressed his opinion regarding the recent astonishing speculation in utility stocks, the stock exchange hearkened and gave heed.

Although most of the capital now invested in utility enterprises is in actually operating companies, the late financial hubbub has occurred in the shares of holding companies. According to Mr. Insull, such holding-company shares have risen to unreasonable heights in recent markets, For, as he points out, the utility business is always subject to regulation by public commissions in a way unknown to ordinary industrial concerns. Yet security speculators persist in looking upon utility-holding-company stocks in the same light as industrial shares.

The real cause of the heavy speculation in utility holding companies has undoubtedly been a sudden increase in earning power, plus a most unusual series of mergers and consolidations.

It is a rare thing to discover a genuine business leader who will convey to the public unpleasant truths about his particular industry. Mr. Insull has just as much faith in the public utility business as--say--Judge Gary undoubtedly has in the steel industry. But he realizes that there is such a thing as overoptimism, and he has courage enough to state so openly when occasion demands. Secretly, he must be amused to witness the reaction to his remarks of the numerous Pollyannas of U. S. business.