The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-04-01
DIGGING AMONG GAS MILLIONS.
MARES NEST or 4 DISCREPANCY
DISCOVERED YESTERDAY.


Proved 20 he the Difference Between
Original Cost and Present Values OF
Consolidated Piants-OmciGlS Cheer'
fully Help With the Hguree'
The gas Investigating committee In lie
sessions yesterday discovered hBt OF all
a discrepancy in gas plant values which
turned out 20 be no discrepancy at all, and
then set merrily out on a search for t0ooIoOO
which seemed 10 have dropped out Of the
proceeds Of last years sale Of gas bonds
The session. closed with every prospect
favorable to the finding Of the missing
item to-day.
While BENJAMIN whiteley assistant
treasurer OF the Consolidated Gas Com
pany, was on tbs stand In the morning
Chief Inquistor Hughes forced him TO ad-
NIT that there was an apparent discrep-
pancy Of 2,67i ,77046 between the value
Of tbs property Of the company used In
producing gas, a. carried In the balance
sheets Of the company, and the report made
by II 10 ths State Tax Commissioners on
June 90 last year. On the books the items
entering into this account footed up to
| So, on, $1,000. In the report 10 the Tax
OOuninlhAlOn5Ibt blklA1u W ANoboib ~ NeASoAt
secretary OF the corporation, the total Of
the same items was only S27,2 ,67e.SO,
There Is a discrepancy Of over ti2 10000,
Is there not1T asked Mr.. Hughes.
There is replied the witness
Can you explain itp'
Il can not.
who cam"
Whoever made up the report, suppose.
had nothing TO do with preparing It.
Were the figures taken from any other
set Of books that you have not produced
here?'
They were not
Have you any idea where Mr. Carter
got his Ggures to make up the report to
the Tax Commissioners1'
Il have not.
sMr Carter should be here said Mr..
Hughes, addressing the committee, 'and
l ask that he be produced at the afternoon
session. No mere certificate from
physician should be accepted as an excuse
for his further absence. II that plea Is
raised the physician should come here 10
person and submit 20 cross-examination
as 10 Mr. Carriers physical condition
At the beginning Of the afternoon session
Charles F. Mathswson counsel for the
Consolidated company. rather took the
edge of the significance OF the alleged
discrepancy by explaining that there wasn't
any. The figures carried in the balance
sheets represented the actual Investments
OF the companies forming the oonsoUdA-
ton as far back as 1923 when the frst mains
we've laid in this city; the sums given in the
report TO the State board represented
what II would cost TO reproduce the plants
to-day This. Mr.. Mathewson said, was
"a = 10 aNN IN n an
declared that Mr. Carter's illness was
largely due 20 the fact that he had over,
worked himself in getting out material
for the use Of the committee, and that be
would go on the stand a. soon as his health
permitted.
the disposition Of the proceeds OF the sale
last year Of so, 900 900 worth Of the con
yertible bonds OF the company. Mr..
whitelcy could only remember where
$4,000 900 Of the cash 20 derived had gone.
hut he promised to look into the matter
and let the committee know to-day what
had become OF the balance.
"A little item Of a. oOO, 900 could not bave
been lost In the shufle could it1' inquired
4 hardly think so,' replied the witness,
Concerning the several increases In
the capital stock Of the company since
iss4. the date Of consolidation, Mr. Whiteley
testified that the Original dulouiiN WNH
| $50 O7s. 900. The first increase was SIS
| $1,000 in April. 1900. with which TO buy
/ the stock OF the New York Gas Electric
| Light Heat and Power Company. The
/ NEXT increase was Of 600 TO buy the
| stock of the New Amsterdam company.
! The balance Of S2l ,6ls, 200 with the excep-
! ton OF $500 900, which was sold in the open
! market at $50, was issued TO the share
! holders pro rata at $50 a share. The re-
| suit was that the company got tS2,t4o'SOO
/ for the S2i ,8l3, 200 worth OF stock pre-
| MUM Of t0,sl5,sOO.
| He aaid that the Consolidated was Tecelv-
| inc per cent. dividends on its stock in the
! Mutual company and per cent. on its
/ Standard stock Ten per oent was the
! usual dividend on the National Coal and
/ Coke stock, although II paid rs per cent.
/ in 1903. This is the oartage branch OF the
/ company.
Mr.. Hughes pounded away all afternoon
: at figures which would show the actual
/ cost OF producing and distributing gas.
Mr.. whitley was most accommodating.
| He even produced carefully prepared sum
| maries which saved the committee the
trouble Of fishing the information out OF
the great mass Of accounts kept by the
t1,st. The summaries showed, among
other things that the Consolidated had
sold 10 600 600 600 feet Of gas in 1904. for
which Il received si3, l67, 6O9.o7. It's income
from securities was te6s 5l4le, and from
miscellaneous sources til9. 7i7.55 The divi-
dends paid amounted TO 20, 200 go, leaving
deficit Of 81 ,O62, 569.sO which had 70 he paid
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