Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-04-05
Cost Of Production, Price to Consumer, and
Question of Capitalization Covered
in Examination Conducted by
Attorney Goldsborough.
Mr.. Humphreys-Yes, sir.

MI Humphreys-At the request of the
gas company.
| Mr.. Cary-Were you not here year Oh
two ago?
Mr.. Humphreys-I was here about two
years ago, Mr.. Cary and l remember
meeting you at that time.
Mr.. Cary-You came that time al
the suggestion of the gas company also
did you not?
Mr.. Humphreys-Yes, sir
Now. Mr. Chairman, if l may go ahead
In my own way, l would like to do So
but if the committee desires
The Charman-Yes, if you would prefer
it, you may proceed uninterruptedly to
make your statement, or, the committee
might desire to ask you some questions
| as you proceed.
MIR. Humphreys-It does not make any
Inference to me, but l think perhaps
that my remarks would be a little more
| Ineligible if | proceeded for a while I'M
| interruptedly.
| The Chairman-Very well. and l think
that would be more satisfactory to the
committee Suppose you proceed for fif-
teen or twenty minutes, and then if any
| one desires to ask you questions, they
! will do so.
Mr.. Humphreys-First of all, / would
like to refer, as it is very likely fresh
In your minds, to the testimony that was
| offered by the gentleman this morning
In regard to the quality of gas. The gen.
tleman who testified said that there was
| too much oil in the gas. That may be
true. and it may not be true. If it is
| true, then II means that they are. making
| too rich gas, or that a certain amount
of gas went through at that time which
was unduly enriched; that is, with too
! nigh candle-power. But the chances are
that that was not true. but that it was
simply matter of a rich gas being
] burned in a draft, or something of that
kind. so that the combustion was not
/ complete 1 believe that was intima ted
by the witness l also understood him
/ to say that oil is not always used to en-
rich the gas. l do not know just what
was meant there. If he means that there
are other enrichments than OIL of course
! that is true. For many years our coal
gas was enriched with camel coal and
other bituminous minerals to a very high
candle-power, but the present tendency
is to enrich even coal gas with oil; but
| oil is most generally used, however, to
great extent, in the enrichment of
| what is called water gas. Water gas can
be run at much higher illuminating
value, or candle-power, than can coal
| gas; in other words, without undue
| smoke you could use % or . candle
power water gas where coal gas of "a
or ID candle-power would give about the
! same trouble with smoke In all cases
you will get smoke if the combustion is
| not complete: that is, with any gas of
fairly high candle-power.'
L Where you get a perfectly clear flame
| without smoke, that means, under almost
all conditions. that it is a very low can
Edie-power gas, and you do not need any
/ scientist to tell you that. Where there
is strong tendency to give off smoke, it
1 is simply matter of very rich, heavy
gas The gas that the witness referred
| to as having made>I 500 feet of it at
price of 40 cents was, / presume, what
J Is known, no doubt, as rich oil gas, and
! that amount-49 cents-was, / suppose
the manufacturing cost. That would be
| gas distilled direct from the OIL without
| anything else. and very much the same
character of gas as the Pintsch gas that
has been used for many years in lighting
cars, so as to- get the greatest amount
| of illumination without the smallest
compass. but in that way giving them
/ selves additional problems in the way of
| getting rid of troubles due to improper
| combustion. because it is extremely diff
! ficult to burn those rich gases without
smoke. can speak upon that particular
/ subject because l am familiar with it,,
as l was for three and half years the
chief engineer of the Pintsch company
and the first American engineer in
/ charge Of that company's business in this
| country.
Mr.. Goldsborough-You spoke of 40
/ cents being the cost of the retort manu-
facture. You meant to say that 1t did
not include the cost of distribution or
| fixed charges?
/ Mr.. Humphreys-Yes, the manufacture
ing cost. without anything else. OF
course, we should consider that a pro-
hibitive cost of gas without any other
charges.
Now, gentlemen, l have a few notes
that / made the other day at the hearine
here which / would like to refer to- il yo,
care to have me do so. First. if / may
be permitted. l would like to refer to the
complaint that was made here the other
day as to a bill of $2.79. OF. course,
don't know whether the committee care.
to hear anything upon that or not. The
practice throughout the United State.
| with regard to deposits is to take de-
post where the company has no means
of knowing the standing OF the applicant
just as when you go into dry good.
store to buy on credit. you have to estab
lish your credit before you will be al
| lowed to open an account. So s. is de
posted. and if a bill of So. 20 should not be
paid. then the method Of procedure would
practically amount to the deducting OF
the 81. 20 from the deposit to cover the
bill. and then immediate ly asking the Gus
| toner to put up 10 in order to com
pletc the deposit again In other words
that the deposit shall stay always ahead
| of the bill This amounts to the same
| thing as happened in the case complained
of, when the company demanded that tn,
bill be paid and the deposit left intact.
Another witness referred to the fac
that ii would not be necessary to have the
money from additional capital to max,
extensions either of the mains of thu
large surplus from which to pay fol
such extensions. / don't know whether
II is necessary before this committee tt
refer to such a subject that not
OF course the company has large sur
plus. and it is represented by this fact
that the capitalization does not represen
and is not equal to the amount invested
consequently there must be a surplus
but that surplus is invested in plant al
most entirely, and the balance of tn,
l-surplus is used working capital. Pos
sibly there may be a moderate amour
there that is in excess of the actual re
quirements. and the actual amount to b.
reserved for working capital is matte
| of business Judgment; but the surplus IL
the main is, of course the surplus that i
: now invested in plant.
Now, you cannot very we'll pay for thu
extension of main 21st street b,
using the money already invested in
main on 22d street. SO that this rathe
loose talk about using the surplus which
| is already invested in plant is not yer,
helpful in meeting business proposition
[ Mr.. Coudrey-If it will not Interrupt
you. l would like to ask a question. Fo
| instance. we are investigating and tryin
to find out whether the gas company ar
charging too much for their gas D
: you know anything about the Capitalize
ton and surplus. and so forth, of the ga
4 company here?
Mr.. Eumphreys-Yes, sir.
G M Coudrey-What was their orisins
capital?
: Mr.. Humphreys-Wel. l could not tie
e you that. because that goes back int
ancient history. although l could tell yo
s from papers that / have, from my book.
Mr.. Coudrey-Are you a gas expert, an