New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-04-07
F7GUREs THAT SHOW BIG PROFITS.

FIGURES THAT SHOW BIG PROFITS
This showed that the company had bought
from one company last year for a triie over 2s
cents gas which 81 sold for 81. and that the New
Amsterdam and Standard companies. which sell
70 the Consolidated about quarter OF its an
rusl supply, got less than an average of 30
cents a thousand cubic feet In the last four
years
Mr. Whitley was asked II he had brought
statement showing the cost of distributing the
gas bought from the other companies. and he
said be did not know where TO get the informa-
ZION. The lawyer then explained that the ac-
counts OF the company were kept in such a way
that nobody could figure exactly the cost OF dis
Eribution-
We can say in a general way" he said
'ghat the cost Of distribution is from 81 to 60
cents"
There must be some definite basis for caIcu-
lation" said Mr.. Hughes. 'as 10 the cost of dis
frbuting gas bought from other companies.
We want facts and figures here. and we want
70 know how they are arrived at. There are
100 many general statements and much vague
Inference here. We want TO find out the actual
cost Of making and distributing gas. and
think you ought 10 be able 10 help us"
Nj Whitley promised 10 have some kind of
D statement such as Mr.. Hughes wanted pre-
pared
"Can you work out from these figures Mr..
Hughes asked with an armful Of figure tabula-
sions, 'the expense attached TO the gas prior TO
the time 1t reaches the holder and the cost 10
the company from the holder to the consumer"
q think So"
DEFICITS AND PROFITS ARE MIXED.
Mr. Whitley presented a statement of gas
sales by the company by which it was shown,
apparently. that the company gets less than 80
cents a thousand cubic feet for gas supplied 10
street lamps, and his figures gave an estimated
loss OF Sle,250 in the street lamp operations last
year Mr.. Mathewson was allowed 10 read the
Consolidateds annual balance sheets. 19Ol-04,
showing deficits in each year, while dividends
Of about S per cent We're paid on the company's
stock Then Mr. Whitley was asked 10 calcE-
late the percentage Of net profit in the gas bust
ness for the last five years. taking the book
values Of the COnsolidated's holdings. He
worked out the sum, finding the profit 10 range
IN the different years from nine and nine-tenths
10 ten and two-tenths per cent.
Mr.. Hughes drew attention 10 the fact that the
book values Of the Consolidated in 1904 included
$7,7Sl0c0 for franchises. contract rights, good
viii, etc, which had been kept on the books Of
the company since 1854 He and Mr. Mathew
son argued about the book values which the
company should be entitled 10 use in estimating
profits, until Senator Pages remark about
'guesswork" bookkeeping ended the discussion.
COST OF MAKING ELECTRICITY.
In the afternoon Henry NJ. Edwards, auditor
OF the Edison Company, gave additional testi-
mony about the capitalization Of the several
electrical ana conduit companies which were
merged IN the Consolidated. When he under
took an explanation Of the cost Of producing
and selling electricity. he said:
Whenever you get any figures from US you
least 80 per cent between the currents The
current generated means the amount placed on
our sH'itchboaros; the current sold means the
amount paid FOR. The loss is at least 80 per
cent, and that amount must be taken into con-
sloeration N any calculations concerning the
pFlce of current
What is a kilowatt hour?"
1t is the price Of LOCO volts maintained for
81 hour. = kilOwatt equals one and one-third
horsepower and viii operate for an hour twenty
a6-csndlepoWer incandescent lights"
And all current IS measured in that manner?''
Yes. The average cost per kilowatt hour for
the last i've years is 7.9S and the average in
come col"
The average cost q the current sold in Man
haitian and The Bronx last year was 2.66 cents.
The witness said. Il cost the consumer from
- cents down.
after the session yesterday Mr. Mathewson
made state-nen; 10 the effect that while there
Vss profit in the gas business proper" the
Consolidated had had a deficit in every one OF
the last FIVE years taking into account its entire
business and its investments In the securities
q ether companies. He added:
The company went deeply into its profit and
loss surplus every year 70 pay its current olVi-
eeoo1, 80 that profit and loss surplus OF over
eete3Vye i've years ago has dropped 10 less
thsn 100000 on December 81, 1904. This
shows that q basis OF the cOmpany's entire
business any cut in income would be un;hinka-
be