Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-04-01
THE INQUIRY
Into Condition Of the
Consolidated Gas Co.
Legislative Committee in New
York, Probing.
No Discrepancies Disclosed Thu. Ear
In Spirited Examination.

New YORK, March 31.--AEparent dis.
crepancies OF s11000,OOO in the amour,
OF profits and of $4,000, 900 in the tota,
amount OF Investments, in the state.
ments submitted by the Consolidated
Gas Co., formed the salient features ~
the second day Of the inquiry by the
legislative committee conducting tn.
gas investigation in this city.
On behalf OF the COMPANY. II wac
SAID that another statement would be
presented showing what disposition had
been made Of the s1l, 100000 profits.
On account of the abserce of r. A
carter. secretary of the company du ,
to illness. no explanation was offered
of the difference Of $1,000. 900 beyond
the statement of counsel that il was
attributable to the difference between
the price of properties acquired and
their present actual value.
Inquiry into the capitalization of the
Consolidated Gas GO. during the yari-
Gus stages Of development was con-
tinued by the legislative committee to.
day. Assemblyman Palmer one of the
members of the committee was NOT
present. Benz. A. Whitley, assistant
treasurer Of the company was asked to
explain increases in the company's cap
ital stock Whitley explained that the
additional capital was used in acuuir-
ing independent concerns and produced
statement showing the amount of
stock issued and the sums paid for the
several companies. 1t developed how
ever. that nearly 81. OOO. 900 profits real
lied on the sale of the stock was not
accounted for i'll the statement.
What became of the balance" ask
cd Mr.. Hughes. counsel for the COM
nlittee.
The statement submitted is what ]
supposed you wanted renlied the wit
ness, adding that 1t was prepared by
a clerk. He promised to get another
which would show what disposition was
made of the $11. 0O0. 900 profits.
The witness afterward said that the
discrepancy in the accounts was only
apparent and due to the fact that
properties We're purchased at a higher
price than appeared in the companys
statement Asked as to dividends paid
by the constituent companies of the
Consolidated Gas Co.. Mr. Whitley said
ore paid nine per cent since 1901 AMI
another an average Of Is per cent. in
the last three years.
The investment as stated by Mr..
Whitley from a report by r. A. Carter
secretary of the Consolidated Co. was
nearly $4,000 900 greater than that
shown in the cOmpany's report to the
state tax commissioners. which report
was produced by the committees coun-
sci
When Mr.. Whitley could not explain.
the committee counsel demanded that
Mr.. Carter be produced whereupon it
vas stated that he was sick. Chairman
Steven notified counsel for the con-
soldated that either Mr.. Carter or an
explanation Of his absence must be
produced today.
When the session was resumed. Coun-
sci for the company explained that Mr..
Garter was not we'll enough to come
down town. They promised to have
Carter'S physician before the commit
tee. tomorrow, however. ord Chairman
Stevens expressed himself as satisfied
70 allow the matter to rest there.
The cOmpanyS attorney took Ocna-
sion to defend the statement. which had
been submitted by the company. He
said that the apparent discrepancy of
$4,000 900 between the figures in the
company's report to the tax commits
sIoners and the statement presented.
today. was explained by the fact that
one set of figures represented the pur
chase price of the properties and the
other the actual value at the present
time.
Mr.. Whitley produced statement
which he said was prepared under his
til, Oh I,a
solidated Gas Co. dealing last year. dis
posed of more than 19,0OOO0o,OOO cubic
feet of gas for which they received a
total of more than $4,000. COO. The profit
on this business amounted to s4,634, 1853
and incomes from other sources ma1e
the total net receipts for the year S.
1S1, 400. The summary showed an 81
per cent. dividend paid on S6.799.970,
leaving deficit of NOR" than s1,00O.0C0.
Mr.. Whitley's examination had not
whom tho commit d.