The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-04-15
BROOKLYN has A GAS TRUST,
AND THE TRUST rs RICH TO THE
10 PEN CENT. DIVIDEND POINT.


the Book Value OF Assets by Console
datiOn--Nr. Jerome Makes . Call.
District Attorney Jerome was o visitor
yesterday in the Ademen's chamber OF
the City Hall, where the committee from
Albany Is investigating the lighting situa-
ton In this city He came In just before the
afternoon session began and had short
talk with Arthur W, Teele, the expert ac-
countant who has been going over the
books Of the Consolidated Gas Company
for a week or more in the interest Of Charles
L. Hughes. senior counsel Of the committee.
Mr.. Jerome's visit woke up everybody
in the chamber who had been put to sleep
by the ceaseless flow Of figures. The re-
port was circulated at once that he was
preparing TO indict the directors OF the
Consolidated company for maintaining
a monopoly in restraint Of trade under
the Donnelly Antitrust law
7 just dropped in to zee my old friend
Teele.' said Mr. Jerome, as he was hurry
ing away.
Mr.. Jerome's visit had nothing 10 do
with this Investigation said Mr.. Teele'
He came to see me on an entirely different
matter. Nothing was said by him about the
Consolidated Gas Company
Mr.. Hughes took up yesterday afternoon
the lighting situation in Brooklyn and found
that the Union Gas Company had the same
kind OF a cinch on the gas business OF that
borough as the Consolidated has in Man
haitian and The Bronx. He also learned
that the Union ia a very rich corporation,
and that It pays 10 per cent. dividends.
Gen. James Jourdan, the president,
testified that the company had capital
Of 5000 900 aad a bonded debt OF the
same amount, all Of which had been issued
at the formation Of the corporation TO
acquire the property and franchises OF
seven independent companies operating
in Brooklyn in 1885, The total capital AID
bonded debt Of these concerns was tlS,-
$1,000
Arthur F. Stamford, the Union Gas
Company's assistant treasurer, then TOOK
the stand and was asked 70 explain how
the securities we're apportioned' Mr..
Hughes wanted TO know II there was any
record 20 show the actual value OF the
properties Of the constituent companies,
and whether an appraisement had been
made before the Union company TOOK
them over The witness did not know.
He said that the values placed or inc plants,
mains and the like had been entered In the
journal Of the Union company when the
books were etartCus OUT now Nheoe VALUES
were arrived at he could not say.
who made up these statems nts? asked
-samSSei j. Young. then an employee Of
the Union Gas Company
where is her
He IL dead"
Wasn't be an employee OF the Con-
solidated Gas Ccmpanyl'
He was an expert accountant IN their
Sir, Stamford admitted that the book
value of the asse Is Of all the consutue Mt
companies exoe pt one had been large ly in
crt ased when they were transft TTt O 70 the
boo ks Of the Union N mpany. Among otter
things between 10000 and 100000 was
added 10 the mains account for franchises
and So 900 900 for special franchises.
In other words you acded 100000 for
fling the articles Of Incorporation OF the
Union company IA tho Seer ~ Of States
o ioe at Albany?' asked MIR. Hughes.
I pre- sumo 50, was the answer.
LAWYER Dykman, counsel for the com
pany, took exception 70 this answer. He
said that the values entered in the books
included the franchises and good will Of
the Constituent companies. and that tie
spe ciAl franchises were assessed by the
State board at 100000.
Mr. Stanford testified that the cost Of
manufacturing gas in 1904 was 1914 q nts
a thousand cubic feet. This was about four
cents a thousand more than in 1901, the in
crase being que TO the ince ased cost OF
coal and oil. In describing the financial
opera tons Of the corporation after II had
acquired the property of the sewn 90 m
panies In Brooklyn he said that 1t Lad
bought the stocks Of the folio wing com-
panies:
Flatbush Gas Compauy-All.
Richmond Hill Gas COmpany-Al.
Eouity Gas Company-Al
Jamaica Gae Company-Al.
Woodhaven Gas COmpany-Al.
Newtown Gas Company-All.
Treasurer Whitley OF the United Electric
Light and Power Company admitted that
the amount written on for depreciation
had been doubled since the Investigation
started, bringing Il up TO one cont hlo-
watt hour, the same as the amount charged
OF by tho Now York Edison Company
This brought tho average cost per hlowatt
hour cold up 20 572 cents. Mr.. Hughes
then read the permit from the old Board Of
Electrical Control allowing the company
10 do business in this city. One Of the
proyisions was that the company should
furnish one arc light free TO the city for
every fifty il supplied TO private customer
~Do you furnish those lights 10 tho city
freey' asked Mr.. Hughes.
-Wc arc furnishing all our lights 10 the
CITY frcs now said the witness evidently
referring to the bills that have been held up
by the Comptroller
Eve don't operate underthat permit now"
put in lawyer BeRrdslcy. THE COURT
have hold that II II not FRANCHISE, mat
was one Of tho reasons for cons olidating
with the United States Illuminating Com
when did this consolidation take place''
In 1902
Mr. Hughes then read from the sworn
protest Of the United Electric Light and
Power Company 10 the State Tax Board
in March, 1904. In which Il was stated that
the corporation had no other franchise than
tho permit granted 20 II by the Board Of
Electrical Control. Mr.. Beardsley offered
no further remarks on the subject.
STATUE FOR VALHALLA CHURCH.