New-York tribune., 1885-02-21
THE GAS INVESTIGATION.
A WITNESS WITH A BAD MEMORY.

NOT PRODUCED-DIvIDENDs.
Senators Thomas Gibbs and DAILY, compos-
Ing the Senate Committee investigate the gas question:
met yesterday the City Hall John H. Sherwood L. d.
Thomas and others, Of the Gas Consumers ASSOCIATION
were present with their counsel, General Tremaih'
Deputy Secretary OF State Anson g. Wood first pro-
duced the merger agreement fled in the Secretary OF
States office, under which the g." CUM,
panies consolidated. President Zollikofer OF
the Metropolitan Gas Company, was 'hen
asked il he brought with him the annual reports Oh 'o
company and the other papers required by his suppna
He replied he had not and expressed douot as "
whether or not such reports were in existence
Mr. Ande fson counsel for the Consolidated Company
said that the rival companies were seeking TO pro' W
this inquiry and his company objected 10 compIyhs
with the subpoena General Tremain disclaimed EN-
phaticaly that rival companies had anything whatever
to do with tho investigation. He said IL was
necessary to know the substantial facts about
the financial transactions OF tho companies
In order to legslate intcligently. The committee
decided that the papers must be produced ana wou
privately Inspect them and determine whether or hot
they should require them be put in rs testimony MI
Zollikofer asked II he had brought some other
papers required by his subpoena. He said "No, wouu
bring anything except by order of the court he
was directed to comply with the subpoena at tho next
meeting General Treman suggested that he produce
summary OF the accounts on which statements "e'o
made the Office and which taxes were levied
Mr.. Anderson-That shall not produce.
MI Zolnkoer testified that tho capital stock OF MS
company 81, 100000 Of which $l.7Oo,0oO was Is
sued In 1868 and the remainder aftcrward.
o-Atwhat rate was the stock issuedi A.-The books
will show at par.
Q.-Don't you know that II was not issued at pari A.
i don't remember purchased some Of 1t myself.
Q-what price did you payi Al decline TO answer
Tho witness said that the company issued Siooo.Opo
in scrip as dividends and afterwards Issued S658ooo III
hon IL aLe uartn nf hat
paid for cash. He could not remember the rate Oh
dividends which the scrip was issued.
Q-what rate Of fd.yldcnd did your company pay In
lssIl Al decline to state That Is our business.
Mr. ZollkoiIcr said that he could not remember the
rate OF di,idcnds in any year. An extra ten per
dividend was paid out OF tue
surplus hand in January of this year Two
scmiannual dividends declared I'm 1884. lie SAID
that he could remember the total Of those two diVi-
dends 1t would exceed Il per cent exclusive or
the per cent declared IN January lie said That
h. did know that the tax books showed that div
dcnds the amount of - per cent declared last
year. exclusive of the 10 per In January A. near
as could recoect the dividend In 1883 amounted TO
Il per cent, and In $50 10 per cent ne remembered
tfat the gas companies entered Into a pooling
arrau-cmcut In 1879. by which the surplus over
certain ycd sum FOR each company to be v,ded
among all OF them. That cement rotullt'd th'
price OF etc. and continued mp 20 The cou-olt on
lhc total stock o. his company ~2,5oooou. Under
the consolidation ITS share Of the new stock was
Mr rlnlin % what advantage will the consolldat
ne tn the plblci Al really don't know cannot tell
whether ID viii he any alvantagr or not
Tnc witness sand that after ,hc Municipal Company
Organized the competitor brought the price OF down
to ~ -. The, charged thnl on special con
ariane.m Of l-70 The lowest price CHARGED
= -. excepting wh'rrth" ~ - had not expired,
n many OF thcii IAN i'r III o. }e'r' me Ia" Tor
hii ling discrimination iu rrs r-"I Tor gas wa I,l
and th" witness "- n'krd j. hal NOT been V"hci i
that but hs counsel h"ty objected to such cues
ton.
time "f the low prices y"n supplied gas IT io's a
Ne suppi.cd soil~ at 70 l's'.
Q.-Would YOU bc willing to swear that NJ 81 % now
you would bc ,uppyih2 "a Al lo-' khovin@ That y"I
are practically secured against ,omIcttioaI Al
Va 1r. enuit. wc,c made % ascertain from tho wit.
the cost ~ gas 90 thc holder. but he all that h'
cuting llstrbutpn. etc. their In i-oJ cost them
- per 10Oo NJ LolAohrr Is 10 refresh his menorJ
from the books and 90 again appear before tA" commit
tee. In the meantime an export Will cSaniLe thn
rrc.iden, Kennedy. OF the Mutual Company. which
under s franchise could enter hf cancellation.
si"ck when was sitcn 10 contractors fGr work kftcr
wari .JoDupO 81 The stock wa wiped oui and bonds
by pr 20 pay moro than 10 per ccnt In dividefd' 20
stockholders the remainder Of the surplus any 10 be
divided among tho consumers. ~ lhii thr 900 amount
m dividends. but noVor made any dividends I" 'oh'um
Mr. Daly-Hive you never made over 10 per cent IN
Nj. Dap Then You never complied with the IA"
Q-iiavc Won not surpiu,I A.-Yes. S5oo.ooo In
The wines, said tho company entered tn. pooling
agreement He could not tell wrcre the pnplin; com
Iuitfrc were now. Although practical gss mauuiari-
rr h. could not tell the uf in the holder Ihe
company made watcr-naphha It's stock a ole time
low "a -. but now was worth considerably over
paT
Tho committee adJourncd until this morning.
The officer. OF The Gas Consumers Assora'lon John
H. sherwood. pfc-lrut. IA k.ou - schultz william H.
Webb aud Theodore Moss wee presidents; Robert ".
sfcbeigh r. and Frank :. Gardner. srcrrtary,
yc 'crdAy sent letter 10 the Governing Commitcc of
the stock EA,hauce protesting against the stug ~ The
stock uf the Consolidated Ga Company a the stock J.
change. Among other reasons gwen Tor Opposing iht
aupraun the states that believe n TO r an
eor on the part holders ~ this grossly waterr
STOCK TO unload fictitious values upon the investing
public"