The age-herald., 1899-08-26
to pay dividends ?"

 to pay dividends?"
 'sThat may have been bad business judg- ment."
 "Was it ordered by the directors?" asked Captain Ward.
 -"Yes. Yet I don't know I have been running this thing without board of directors"
 MT. Jemison explained that when he took hold there was $4OO 900 of bonds and $50000o of stock. He then got men to buy up the bonds att from 40 cents up and exchange them for $3OOOO0 of new bonds.
 The value of the stock came up.
 Mir. Jemison said 1t sold from Sl0 to $25.
 Sometimes you lose 1000 by stroke of lightning?" asked Captain Walker.
 "Yes"
 'Is this characteristic of a gas plant?"
 "I object" said MT. Calbaniss.
 "You know lightning don't bother gas plants" interrupted Captain Ward. and everybody laughed.
 "I don't know anything about Illuminate ing gas." said MT. Jemison.
 "You do know of other kinds" suggested MT. Cabaniss.
 
 MT. Cabaniss called attention to the value of the real estate and buildings. and said:
 ',rhe case is before the jury"
 "1 am perfectly willing to rely upon them" responded MT. Jemison.
 MT. Cabaniss, in closing. said he wanted to say the machinery which had depreci- ated % per cent year had been in use eight years.
 MT. Jemison interrupted to say that 1t had been built over two or three times.
 MT. Cabaniss to the board-What Is the test of this matter? What are the bonds and stock worth? The property Is worth for purposes of taxation what it is worth for purposes of sale.
 MT. Cabaniss grew earnest, and cited many decisions to the board to show that plant was worth for taxation what it's bonds and stock were worth on the mar ket. He cited the case of the Adams Ex- press company turning in it's tangible prop sustained a decision raising them on their general business s400,OO0 on the proportion ate value of their general securities Now. MT. Jemison says he can't tell you the value of the tangible property This otoSh pau T per CeifI. ldSC year. NOW, WndC is stock worth that pays per cent? Mir Jemison says the value of this stock was s25 last October. That would be $125,000 Now, stock could be worth nothing unless interest on the bonds was paid. The bonds are s3OO,00o. That makes $425. GOO; but say the stock is worth more than $25 It paid 4 per cent. According to his own state ment this property must be worth $425, ,o0O." Attorney Walker then entered the arena of the stage. He compared the securities of this company with those of the Gas company. Both have $500. 900 of stock and $30O,000 of bonds. The net receipts of the Gas company were $30,000; of this compa- ny s2s,000 He didn't know what the Gas company did with the amount of earnings over $lS,000. which went to pay interest on the bonds.
 We are not discussing whether it was good business on the part of the Electric Light company to borrow $9,000 to pay a dividend on its stock. We do know how delicate electric machinery is and how easy 1t is to suffer accidents. The gas plant Is not subject to such accidents "we have said our plant is worth $12s000. You have said the gas plant Is worth $9O0.0Oo-a plant which by it's own showing 1 earns more than this company and Is not | subject to such accidents. | Captain Walker here got excited and 1 spoke to the gentlemen of the jury. | He went into the difference between the simplicity of gas plant and tho delicate, l susceptible machinery of an electric light plant. "You cannot compare an electric 1 light plant investment to that of a. gas plant. Yet my friend wants to tax this plant at s425,OOO, when you have taxed the gas plant at s2OO.00o. We insist that s12S,00d Is the full value of this property.
 MT. Cabanlss started in conclusion. Sud- l denly peal of thunder sounded.
 You all have raised the lightning?" re- l marked Captain Ward. | Mir. Cabaniss went into the supreme court decision on the taxation of corpora tions. He declared MT. Jemison had sworn in making his assessment that the market value of the stock was $25 share That would make all this stock worth $125 900.  Continued on Sixth Page.)