The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1902-10-03
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Gas Company Required to Pro-
duce It's Records.
Manager Morgan Testifies Be-
fore Special Master.
COST OF MAKING GAS.
Alleged 1t Is Over $l.O2 Per
Thousand.
Claim to Make Only Only 5 Per
Cent on Investment.

O0uC Oh investment
Apparently against his WILL Secretary
and Manager H. S. Morgan of the Ex-
celsior Coke and Gas company produced
the books of the gas company this
morning in the hearing of testimony in
the dollar gas case before Special
Master Robert ]. Brock of Manhattan.
and testified from the books as to the
receipts and income of the company.
1t was the intention of the attorneys
for the gas company to have Mr.. Nor
out of the books. but the attorneys for
the city, Charles F. Spencer and Judge
Mcfarland objected to this and their
objection was sustained.
The ATTORNEYS for the city claim that
the production of the comDany's books
is a victory of considerable Importance,
for the reason that the books will be in
trOduced into evidence, and will be open
to the inspection of the witnesses for
the CITY as well as the witnesses for
the gas company. The city expects to
produce some witnesses to give expert
testimony from the company's books.
According to Mr.. Morgan's testimony,
the actual cost of making gas in the
city of Topeka during 1900 was $1.0264
per 1000 cubic feet. or 264-100 cents per
thousand more than the price which the
city desires to esta ablish.
Some of Mr.. Morgan's figures on the
manufacture of gas at the Topeka
plant. the cost and the amount produc-
ed, as brought out at the examination
before the special master this morning,
are of great interest
The following figures are for the year
1900:
Amount of gas manufactured. "a, SS4,-
800 cubic feet.
Total cost of production. distribution.
etc, $35, 1884
Total receipts, S50, ,715.27.
Net profit, s14. .95933.
Mr.. Morgan stated that to give a
revenue of 10 per cent on the capital
invested, the net receipts should have
been $4,000. which would necessitate a
charge of about $1.75 per thousand for
gas Mr. Morgan claimed that the av-
erage amount which the Topeka plant
receives per thousand is $145.
Mr.. Morgan also gave similar figures
for the first six months of 1901, which
takes it up nearly to the time that the
city council passed the dollar gas ordi-
nance
The Excelsior Coke & Gas company
has never paid any dividends, according
to Mr.. Morgan. It has used all it's earn
ings for the betterment of the plant.
The examination of Mr. Morgan COM
menced at shortly after 10 o'clock this
morning at the Office of Rossington,
Smith & Histed in the Crawford build
ing. Charles Blood Smith is examin-
ing the witnesses for the company, ano
Charles F. Spencer and J. T. Mcfarland
stenOgrapher.
Mr.. Morgan had a number of type
written statements in regard to the
earnings of the company and the inten-
ton was that he should testify from
these memoranda. This precipitated
quite a lively argument between the at
torneys, with the result that Special
Master Brock instructed Mr. Morgan to
produce the books of the company, and
testify from the books direct. This was
done.
Going more into the detail of Mr. Nor
gan's testimony. he stated that he had
for six years been secretary and mana
ger of the Excelsior Coke & Gas COM
pany, and that prior to that he had for
four years been in the gas business.
VALUE OF THE PLANT.
It was important to determine the
value OF the plant so that the income on
the investment might be known.
Mr.. Morgan testified that the
company's real estate was worth
from $500 to $1,000 per lot;
tina tthe original capital was $685.
! 600; that bonds to the amount of $780,
900 had been issued and taken up; that
| about $4,000 additional had been in
| vested in the plant out of the earnings.
He estimated the total value of the
plant as it now stands at $3.50, 900 or
1926, 900.
He stated that the company had %
miles of mains in 1900, and on Decem-
Der 81, 1900, had 1869 meters in use
EXPENSE OF OPERATION.
The expense of operation was divided
into three parts-manufacture, distrib-
ution and taxes.
The company paid about So per ton
for coal in 1900, and when at its busy
season used about 10000 pounds day
of slack. Under manufactures are the
following items:
Total for coal l-.-......-........$ SIG, ,68S. .6a
wages --------. 5.49S 90
Purifying material. ........... 1727. .6s
Gas supplies ACKNOWLEDGEMENTS. 706 "a
repairs .--...-....-.-- A......- z,939-3e
Total ........-...........$2 $27 ,561 As
Received from sale of coke. sc. .7S3. rs:
from sale of tar, $2,6O90 OIL; total, SO. 3S6. IL
This amount is deducted from the cost
of manufacture, leaving $1S,17471
Under the head of distributing the
company includes the cost of securing
new business. the repairs on mains. the
salaries of the manager and office force
and a large number of other items II
amounts to total OF S14,012 .7S. The
taxes for 1900 were SO, ,56S As. The tota
expenses for the year 1900 were there
fore as follows:
Manufacture .................S1 SIS 174 II
= Distributing ACKNOWLEDGEMENTS 14,0127'
Taxes 3,568 4;
Grand total. S35 1855 9.
As stated above. the receipts for the
year We're $50, 715.27, leaving net in.
come of S14 1853. .33
AMOUNT OF GAS MANUFACTURE
Mr.. Morgan referred to his books, ant
reported the following amounts of ga:
manufactured per month during 190l
: and the first six months of 1901
Cubic feet
January. ~ ....-..........-..........s ST., 10
February. 1900 ........................307 073 81
March. 1900 .7sS 20
April. 1900 z, ,5S1 sc
+ May, 1910 469. 10
June, 1900 2, 546 90