Cashing In

Playing a losing game ever since the 1935 Holding Company Act, the $957,000,000 North American Co., No. 2 U.S. public-utility holding company,** last week decided to begin cashing in its chips. First stack to go is all blue: its 100% stock interest (2,695,000 common shares) in Union Electric Co. of Missouri.

N.A. picked up Union Electric in 1901 when it had 1,000 customers, about $6,000,000 assets. Now it has 365,000 customers, over $270,000,000 assets. It has also a smart balance between steam and hydro plants (66-34 ratio) and low rates. Deep in the defense program (serving airplane, TNT, cartridge and ordnance plants), Union spent $20,000,000 on expansion in 1941, will spend another $21,000,000 this year. It has never lost money, in 1937-41 averaged $7,000,000 profits annually. Only blotch on Union: two years ago it was caught buying politicians. Now it has a clean new management headed by ex-Judge J. Wesley McAfee.

Like all losers, North American hates to drop out of the game, even though SEC and the Holding Company Act have changed the rules. Until SEC officially okays the deal, N.A. will not state: 1) the offering price of Union Electric stock, 2) date of sale, 3) what it will do next.

**No. 1 Electric Bond & Share system.

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