The evening times., 1896-03-04

| the plant.
The CIiairnan-That was to cover plant
extension AMI increase OF capital stock?
Mr.. Orne-Yes, sir.
4 The ChairmaD-What was the date OF
| that bond transaction?
| Mr.. Orme-August, 1887, $500, 900 OF
Series A tonds, and January, 1889, $780,
0UU b iOnas. Iho. e were } Oi.l.h, ana paI.i
for by the stockholders. They were issued
FOR The construction OF the new plant at
The Chairnian-Thosc were sold at par
| were they?
Mr.. Orme--They were sold at par to
| the stockholders OF record.
| Mr.. Hulick-There is the item of interest
on bonds. $4,000: is that paid to the
| stockholders?
| Mr.. Ormc-That is paid every year on
| 81 200. eco OF those bonds.
| Mr.. Hulick-And those are held by the
stockholders?
Mr, orne-They are the Fer cent bonds
held by the stockholders.
| Mr.. Hulick-Then the individual stock
| holders receive the interest from the COM
| pany on that investment in bonds.
| Mr.. Orme-That is an expense. you
notice. Is not that In the expense column?
Mr.. Hulick-lt is under the head Of
| disbursements.
Mr.. Orme-Those are bonds that the COM
! pany owe.
Mr. HulIck-But the company owes it to
the individual stockholders?
| Mr.. Orme-Yes, and to others. who have
| purchased them.
Mr.. Hulick-On the other side there is
| the item of interest, S19.75s.S9: from
what source does that come?
Mr.. Orme-That came from the bonds
which we sold noted right under that item.
Mr.. Hulick-That was the interest re-
| ceived at the time you sold the bonds
amounting 10 S36s.G63.75?
Mr.. Orme-Yes, the interest that was
received then and along about that time
The Cha airman-State TO the committee
the date OF the last reduction in the price
OF gas; o ,ooe
Mr.. Hulick-Why did you reduce the
price of gas in October, 1856?
Mr.. Orme-The company always has re-
so consistently with the prices of materials
entering into its congestion
Mr.. Hulick-Since October, 1885, you
have seen no time when you could reduce
the price OF gas and make anything for
your company. is that TACT?
Mr.. Ome-I believe that is the fact. al-
though could not speak ex cathedra. The
directors are the men who determine that
point and they are the Officers of the com
pany vested with authority for that pur-
pose. 1t would be presumptuous in me TO
sa that.
Mr.. Huiick-In 1886 from what price did
you reduce IL?
Mr.. Ome-It was S1.75 gross and s1.5O
net.
Mr.. Hulick-And you reduced it to what:
Mr.. Ome-S1 30 gross and S1.25 net.
Mr.. Hulick-Can you not make another
reduction in view OF this showing you have
placed before us?
Mr.. Orme-I hardly think so.
Mr.. Huiick-1n other words II a competing
company We're to be authorized and should
proceed 10 business, you would have to 20
out of business, would you, rather than
Furnish gas at 81 or less?
ONE CONTINGENCY.
Mr.. Orme-No: we would have to stop di
vidends. We would have to do as railroads
do-stop dividends and interest entirely,
possibly.
Mr.. Hulick Stop dividends upon what
am oUnt OF capital?
Mr.. Orme-S2 ,OOO, 900.
Mr.. Hulick What was eoriginalamoun
OF capital stock invested.
Mr.. Orme-All OF that money has been paid
in in cash, except about $1,000
Mr.. Hulick-what was the first amount of
stock that you started with?
Mr.. Orme-S5O 900. think, in 1S4s.
Mr.. Hulick-You have increased that up
TO the present figure?
Mr.. orme-we have two millions of
stock.
Mr.. Hulick-And has not that increase
from the original stocks been the accumula-
tons OF the company from the people who
pay for the gas?
Mr.. Orme-Sot at all. sir.
Mr.. Hulick-Where did II come from!
Mr.. orme-It came out OF the pockets
of the people who paid for 1t. Most OF
that money / received myself personally.
Mr.. Hulick-From the stockholders?
Mr.. Orme-Yes; because when the capi-
talization OF a company is increased the
stockholders OF the company have the
ontion of taking the increase themselves.
and as a rule they do take 1t. 1t was In
that way that / received the money my
self from the stockholders, paid over the
counter.
Mr. Hulick-The increases OF stock have
always been taken by the stockholders as
q good investment?
Mr.. Orme-Yes, sir.
Mr. Hulick-They have proved to be good
Investments?
Mr.. Orme-Yes. sir.
Mr.. Hulick-And paying such dividends
as you have stated to the committee?
Mr.. 0rme-Yes: except that in the eariy
years OF its existence. and mp to twelve
or fifteen years ago, when L was not ac-
Quainted with the company.
VALUE OF THE STOCK
Mr.. Hulck-A share. the par value Of
which is S25. is now worth $40?
Mr.. Orne-The par value is $50;
Mr.. Hulick-Weil, take it at $50. The
market value is now $40.
Mr.. Orme-I do not think it is worth $40.
Mr.. Hulick-What do you think 1t is
worth?
Nj. orme-I do not think 1t is worth.
Mr. Hulick-I understood you to say that
1t was worth $40.
Mr.. Orme-It is selling for that. 1t PAYS
per cent at $40, with the exigencies OF
MT. Hulick-Do you know of any stock
holders who would like TO part with their
stock at $40?
Mr.. Orme-No. sir: do not
Mr.. Hulick-Could You not find many
purchasers who would like TO get 1t at $40?
Mr.. Orme-Forty dollars would be q fair
price, sir.
Mr.. Huiick-Then your company feels tnat
it cannot afford to furnish gas at 81?
Mr.. Orme-I do not believe we could.
Mr.. Hulick-And make the profit 1t Is
now realizing?
Nr. Orme-It would cease TO be very
valuable stock at that moment. sir.
Mr.. Hulick-I will not press you further.
Supt Leetch closed the hearing with
statement in opposition to regulating the
price of gas at 81.