The Washington herald., 1907-08-07

value Of the land or property, but as an
aid for enlightenment in connection with
the expert testimony which is evidence of
estimates based upon information which
they acquired either first or second hand.
"0nIy Hearsay Evidence
In the present case it will be remem-
bered that great deal of information on
which the witness Randolph, who was
witness produced by the petitioner here,
bases his estimate is information &C
CURED from Mr.. Middleton, the general
manager. and subsequently when Mr..
Middleton was On the stand we find that
he got that information from other
sources. partly from the books and partly
from other parties, so that it was all of
the character Of secondary or hearsay
proof.
I will presume for the purpose Of deal
ing with this motion or application that
the books of this corporation have been
kept as books are ordinarily kept By
cooperative organizations, and somewhere
they have a construction account or prop
erty account, which is made up II. some
tangible form periodically, annually. or
semi-annually, as their rules require and
that these books of account would show
the original cost Of the entire property.
the value Of which we are asked TO de-
termine at this hearing.
In this connection I may refer to the
first item on this list and say here that
I do not think it would aid the court OF
the auditor in dealing with the questions
here. That called for the minutes Of the
board OF directors and the stockholders
or the company for a certain period of
ume-five years, I believe What the di-
rectors or their counsel nav have de-
termined Is not the material question
here. The question here is what the com
pany did through its proper authorities,
what plant 1t did acquire or did own,
what plant it organized and what extern
sions, and additions. It made to II. and AT
what cost. All are matters of fact and
not orders of the board Of directors.
Entitled TO the Facts,
I have concluded that the counsel rem
.resenting the District and the United
States are entitled TO the information
which I have formulated in a little diff
ferent manner than in the request-to wit.
a statement showing the original cost of
the plant and property Of the company.
including separately the original plants
and the additions, extensions and i'm
provements thereto.
"As I said before. I think the matters
for that account will be found In the pre-
serve records Of the company not diff
hcult TO handle or procure the result
from, either in the property account or
construction accounts or In the periodi-
cal reports 10 the directors and stock
holders"
As to the request Of counsel for the
government for information regarding
earnings of the company, the auditor or
dereG that counsel for the petitioners FIR
nish a statement OF the gross earnings.
charges, and expenditures during the last
five years. Counsel for the government
asked that the period covered might be
ten years, but Auditor Payne thought
this was excessive and that FIVE years
would cover all practical purposes.
VIII obey Auditors Order.
After the auditor had made his ruling
w. Ross Perry and other counsel for the
petitioners retired from the courtroom for
consultation. They were absent several
minutes. and when they returned Mr..
Perry stated to the court that they would
be glad to obey the order Of the auditor.
He stated further that there had been
some changes in the internal manage
ment Of the company which made II difT-
cult TO get such a detailed statement as
the court required for a period furt- .er
back than eighteen months. but :dey
would do the best they could.