The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-04-02
GAS KINDERGARTEN GETS ON.
edges DIFFERENCE BETWEEN
COST AND PRESENT VALUE.
Nobody Has Really Dropped Twelve Millions
Down an Areaway-MF. BENJAMIN
whitley Set TO Put Down six and
Carry Two; Geel but This Is Hard TO DO

Down an Areaway-MF. benjamin
whitley Set TO Put Down six and
Carry Two; Geei but This Is Hard TO DO
The net result OF the first three days
Of the gas investigation, ending yesterday
afternoon, IL a record containing nearly
100000 words which shows pretty concur
slvely that the Consolidated company Il net
In business for the health Of It's stockholders
and that It has a oinch on the lighting bust
ness Of New York. That these facts might
have been established in a much smaller
number Of words is conceded, but then II
Is pointed out that 1t is a gas investigation
and everybody knows that like begets
like.
Robert A. Carter, the secretary Of the
company, took the stand yesterday, true
to the promise Of Charles F. Mathewson,
counsel for the trust, and explained the
apparent discrepancy Of over ti2 900 900
between the value Of the real estate and
plants as reported 10 the State Tax Com
mission and as carried on the balance
sheets Of the company. He said that the
figures carried in the balance sheets rep
resented the actual investment and the
figures in the report to the State board
the present value, An effort was made TO
ascertain the true value Of the property
fairly and he had been assisted in the work
by competent judges. He gave the same
explanation concerning the item Of mains
and services which was carried in the ball
snce sheet at Is, 900, 600 and in the report
70 the State Board at a, 900 900, This esti-
mate was based on the calculation that II
would cost S5,OOO,OOO 10 reproduce the
present system Of mains Il was placed
at 81 900 900 less because something had
TO be allowed for depreciations written
OF from book values.
Benjamin Whiteley, the assistant treas
urer. was on the stand most Of the morning
and afternoon, and the questions and
answers were rarely ever in terms Of less
than millions Once Mr.. Hughes said
$500 when he meant $500 900, and Lawyer
Mathswson politely corrected him.
Thank you said Mr.. Hughes, but
am 80 used to talking about hundreds OF
thousands that think a little clip like that
Is only natural
Mr. Whiteley might have been a pupil
up for examination in addition multiplied
ton and division and Mr.. Hughes the school
master. The object Of the quiz was TO
tributing gas and the profit the company
made. II is safe to say that Mr. whiteley
hasn't done 80 much oiphering in long
time On the whole he was a very obedient
and obllginG boy at the blackboard. The
proceedings were something like this:
take the values said schoolmaBter
Hughes, 'as reported 10 the State Tax
Commissioners on June 80, 1904. Of real
estate, plants, mains, services and supplies,
the amount given being 81, 2os, $50, and
add TO It t7,7sl 900, the amount stated az
the value OF the special franchises, and
what do you get?'
"SSS, O7s, 576," replied the witness after a
pause in which he was busy with a pencil
and a sheet Of paper.
Nov, We have shown that the profits
on gas making for the year we're 81, 769,l55.
sS. continued the schoolmaster. please
tell me what percentage OF tS5, Oh $40 that
sum ls.
About 1872 per cent?, replied the witness
meeky, after painfully figuring the matter
out.
Earlier in the day Mr. Hughes arrived
at the conclusion that the profits on gas
making wSre / per cent. In this estimate he
allowed nothing for the 1874 900 at which
the company valued its special franchises.
Air. Mathewson said that this was not a
faiI estimate as the corporation was obliged
60 pay taxes on it's franchises, and there
fore carried them along as a part Of the
capital. He said that the company was
actually assessed for $50, 500, 600 in fran
ohises.
In the course Of the investigation It came
out that the Consolidated company had
borrowed $3.50 900 in 1900 Of the New York
Gas, Electric Light, Heat and Power Com
pany. and Mr.. Hughes Immediately started
to find out what the significance Of the
transaction was Mr.. Whiteley didn't
know. Mr. Carter was recalled and he
also professed ignorance Of the transaction.
Then Henry Edwards, the auditor Of the
New York Edison Company, was put on
the stand and questioned about tho loan.
He said he knew nothing about Il. except
that II was paid back, principal and in
terest, last July. Mr.. Whitley was ordered
to bring the minute book OF the board Of
directors, which would show what the
money was borrowed for, the object being
TO find out how much II costs 10 make gas
and electricity