New-York tribune., 1905-04-15
GAS RIGHTS As CAPITAL.
HOW VALUES IRE RAISED.
Inquiry Into Brooklyn Union by
Legislative Committee.

one OF the most interesting phases OF this nves-
ussuon' so far, - the high regard IN which the
sHt 70 De eorpt ration Is held" said Mr.. Hughes
oulisel OF the Legislative Gas Investigating Com
4.'ee at the session yesterday. 1T would appear
- % simple thing 20 50 TO Albany. get a certih-
cafe OF Incorporation and Immediately proceed 70
eapitalize it. When the new company was formed
alo me other companies taken over. It seems that
sls's1o OF having appraisal and writing OF sums
4OI appreciation You increased on your books items
"-s'eVer you could get a chance"
-. Ieinarks were addressed TO Arthur T. Stanni-
- - assistant treasurer OF the Brooklyn Union
company, which was organized IN 1895 Part
"a Sosuefoay's session was devoted 20 an inquiry
into the affairs OF the company. and Mr.. stanni-
' N' N lae witness chair. told how values Of the
'p3HIes which were merged in the Brooklyn
Nnloh were raised the books after the merger
Aes said the witness to Mr. Hughes: when
these companies were taken over they had not
zen accustomed 70 carry on their books the value
% elsIF goodwill. but the new books a value
W ~ paced on this item. and think the estimate
was conservative one"
ENORMOUS INCREASES OF VALUES
Mr. stanniSords attention was called to an item
OF a6s1So for real credited 70 the BROOKLYN
Gas Light Company. and Mr.. Hughes asked II it
was carried at that on the books OF the old
company He said it was not. The sum for that
item was $4,000.
DO you mean TO saw the new cororsr,, -aVse1 81.
item from $4,000 to sl.eS7.5OO?'
Yes"
What for?'
Because the land was worth those figures"
ar. stamford explained that the land had been
bought IN lS4s and lLs enormous increase in value
never was noted on the books Of the old company.
he said the street mains account had been in
creased from the books OF the old company almost
S5.oooeoo. The rights and franchises which had not
been carried on the books OF the old company az
any value. were put on the books Of the new COM
pany at s3O50,OOO
7 read TO you" said Mr. Hughes from your
balance sheet: Total assets. sSs.uO2So: value OF
special franchises. as per State assessment
SoSS5 600; real estate other than franchises $685.
and personal property. s17sssSSl How much Of that
last ietm OF personal property is goodwlI?'
7 could not tell ofhand.'' the witness said 'but
il had until tomorrow would be able to tell
actly.'
I notice" said Mr.. Hughes. 'that the cost OF gas
in the holder has increased since 1901. when It
SsS cents per 100 feet by year. until In 1904
It was 1874 cents per loo feet How do account
for that7'
The witness said It was owing TO the increased
cost Of coal and oil He explained that the COM
pany paid dividends at the rate OF 10 per cent on
Sl600O00 OF the capital stock OF the company, had
made reserve for depreciation. and had main
tained no surplus other than what appeared in the
item profit and loss"
BUYS COMPANIES WITH EARNINGS.
But you have bought the stocks Of other COM
panies out Of earnings?' asked M Hughes, and
the witness replied that that He SAID that
since the company formed approximate
total OF 1l6sOO0 had been spent IN this way. The
following companies had been acquired:
EeS2Sond Eef1on ii Sd Queens county Go: cornpay IS
Equity Gaslght Company Ooe'OVO
General James Jourdan. president OF the Brook
lyn Union Gas Company. testified about the organ
ization OF the company by merging the Peoples
Gas Light Company. Brooklyn Gas Light Company.
the Citizens the Fulton Municipal the Metropoh-
tan. the Nassau and the Williamsburg companies;
The capitalization Of the companies amounted
10 $4,000. The bonded debts Of the seven com
was &C. s000 go grand total Of stocks and bonds OF
S3g70,G00 For that aggregate the Union issued
Inquiry into the affairs Of the company will be
continued to-day. the examination Of polttica Wit
nesses being deferred until next week when the
committee will hold both day and night sessions
GAS MADE AT TWENTY-FIVE CENTS
George ". Doane. OF the New-Amsterdam Gas
Company was a witness IN the early part Of yes
terday's session. and testified that his company
made gas supplied 70 the Consolidated Gas Com
pany at a cost Of Is cents for LOO cubic feet De-
Quoting the 10 per profit the witness gave the
actual cost Of the gas at about . cents for Loo
cubic feet
the value OF the companies merged with the New
Amsterdam. Afr. MafheWson. counsel for the COM
which Mr.. Doane made ready replies. but when
Mr.. Hughes asked another question the witness
How is it that you answer promptly
questions Mr.. MatheWsOn asks and cannot do the
II 80 !oC 49,, cs,Ise + s 80 ,.
sure" said Mr. Doane. Mr. MatheWson asked me
"Oh. I see" said Mr. Hughes. You realize,
am glad TO see. that 1 want facts even if Mr..
-ASone"soh ei rs satlsheo with impressions
senator stevens said later he regarded the
dialogue as Of great significance He said he
thought it showed clearly. an effort the part OF
mar one witness not TO give any more information
than he could help.