to grow, and in the course of helping his own company, I am told that he was
 the real prophet for the state in bringing northern money back into Florida.

P: So he must have worked very closely, then, with the political powers in this
 state--in Tallahassee and elsewhere.

M: I am told that he worked very closely with the legislature, and, I presume,
 with the governor.

P: There was a series of governors who were business oriented-- David Scholtz
 in the early thirties [1933-1937], and certainly Spessard Holland [1941-1945],
 Millard Caldwell [1945-1949], and those who came afterwards. I am
 presuming that Mr. Smith was on good personal terms with these people and
 also with the legislative leaders.

M: From what I have gathered on an ex post facto basis, I think that he made
 it his business to be on good terms with these people.

P: Was the tax climate in Florida receptive to business investments during the
 thirties and forties?

M: I really do not know. I was not interested in that, I was not old enough to
 be concerned about that, and I have not had any particular reason to study
 that.

P: I suspect that that is one of the arguments that Mr. Smith must have made,
 however, as he attempted to woo investors in the company and also in the
 state itself. Was he a good P.R. [public relations] person?

M: Mr. Smith was an excellent P.R. person for himself and seemingly for the
 company, too.

P: At the same time the spill off must also have been good for the state of
 Florida.

M: That is right.

P: Did you have foreign investors in the thirties and forties, or was this all
 American money?

M: In the thirties the stock was all Electric Bond and Share, so I do not have
 the faintest idea of that. When Florida Power and Light Company's securities
 were first issued, bonds made up the greatest part of their capitalization. In
 an electric company the main securities are bonds. Electric utilities are
 leveraged to a greater extent than most companies are--they issue more bonds
 than they do stock. They will issue perhaps 50 to 60 percent of their total


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