Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-04-11

statement of the company. and. of conrse.
YOU base your statement to..us on their
statement. don't you?
Mr.. Humphreys-Yes, I'm part. but not
entirely SO. OF course. as I say. l have
checked it up.
Mr.. Coudrey-Arent these statements
sometimes misleading? Don't you think
that corporation that Is ma King abnor-
NAL profits tends to conceal in some way
the profits that they makec
Mr. MISUNDERSTANDING they do in
some cases: ! know of such. don
think that 1t is the rule and there is not
the slightest indication of that to me
here
Mr.. Coudrey-Could you see 1t without
going into their books?
Mr.. Humphreys can see a great deal.
ana 1 can see that they have overstated
their profits absolutely. to- my mind. l
have shown It: it is all in the record
Mr.. Coudrey-In other words. they have
tried to show larger profits than they
have really made?
Mr.. Humphreys-There is 10 evidence
that they have tried to do SO. we differ
as to methods OF calculating what is the
cost or gas. I calculate IL I'm a different
way. think they should have included
certain items in the cost which they
have not done.
Mr.. Coudrey-The question OF the price
which they sell the gas for and what It
costs differs in different cities
Mr.. MISUNDERSTANDING.
Mr.. Coudrey-But there is only one
thing that We want to get at. that Is
whether they are charging too much. for
instance. the cost may be more here than
1t is IN other places. but what we want
to know is whether they are charging
too much. In making an appraisal OF the
plant do you take their statement and
go over it. and then while going over 1t
make an appraisal OF everything that
they puSsess?
Mr.. Humphreys-Yes. sir. i take ad-
vantage Of everything l can find in the
books. / go over every piece OF appara-
tus. everything they have got. l don't
take up the mains to see that they have
them in certain districts, but 1 make GER
tain tests by excavations. Suppose my
men are on the work for couple OF
months. Those men are instructed to
keep track Of the regular street work.
and as they find the streets opened up
for repairs or other work they make
note of the conditions found. and these
comparisons are made with the record.
and so we check up in part the record or
the street mains, and from that record or
We find such mains and services In the
streets as so opened We make our esti-
mates of what that portion of the prop
erty is worth, taking the price OF the
pipe the cost of the laying. etc, and
there again l compare what they say Is
the cost and what the books show with
my knowledge, figuring up the matter
OF cubic yards excavated and all that:
so that we make an estimate of values
just as IL / was going to buy the prop
erty: and I will say that most OF my es-
Inmates have been made as the basis for
purchase, or negotiations looking to pur-
chase. SO that i go into 1t with the idea
of acquainting myself absolutely to the
best of my ability as an engineer and an
honest man and experience with the
property to ascertain what ii is worth to-
day: what 1t cost originally il can and
what could replace it for today. Also
N hslf mi n II fAfs los
should be allowed for: in other words. |
do not let anything escape me ii I can
help it.
Mr.. Coudrey-You have answered my
conclusion. You have gone through their
statements. not only this trip, but l be-
lieve you were here, year or so ago
Mr.. Humphreys-Tw6-y years ago I went
through 1t quite thoroughly.
Me this i, your ySs
city is charging too much for gas?
Mr.. Humphreys do not. sir. I think
the price of 90 cents. under all circum-
stances. in Washington Is a reasonable
price. one favorable to the consumers:
and ] believe that a thorough and COM
plete investigation would reveal that fact
to your satisfaction.
Mr.. Coudrey-You don't think that they
could reduce the price of gas and secure
a fair remuneration on their investment.
Mr.. Humphreys do not think IL they
were to reduce the price of. gas that they
would get what should consider a fair
remuneration on their investment
Mr.. Coudrey-This Is what L don't UNI
derstand; why. they do not have their Of
hcfals come before US. instead of select
ing man like yourself You claim that
you are not prejudiced juror. That I
cannot get through my head. Here is
the thing Of 1t. doctor: You pretend not
to be a prejudiced juror
Mr.. Pearre-Not juror. but a witness.
Mr.. Coudrey-A witness. Didn't they
consult you when you were here two
years ago.
Mr.. Humphreys-Yes. sir.
Mr.. Coudrey-Is that why they sent for
you this time?
Mr.. Humphreys-T really don't know.
but I presume that had something to do
with It, The. Washington people have
known me for many wears. AS say
first examined the property. I think.
about twelve years ago. One of my
ton for purchase. and after that they did
not come to terms as to price That was
my first critical examination with the
Washington company. or course. have
known il and visited the works, and
knew the late Mr.. McIlhenny many years
before his death. and he was a very able
gas engineer and manager: and I was
familiar with the plant in many ways, so
think It would be entirely natural for
them
Mr.. Coudrey-Don't you think II would
be a coed idea for US to summon before
us the officials of the plant. the man
who is now the secretary and treasurer.
the general manager-I do not want 70
do anything to interfere with your ar
engagements with them. of course.
Mr.. Humphreys am very modest;
very. sir. l. never look for business; Il
comes to me.
Mr. Coudrey-But I asked you a fair
question.
Mr.. Humphreys-I don't see any harm
In it.
Mr.. Coudrey-Don't YOU think the Of
fcials ought to come before US? Don't
you think the general manager would be
a better man to summon before US in con-
nection' with this matter than an expert.
MFR. Humphreys-No. I do not; for In
spite of my modesty. I don't agree with
you there. You have asked me many
questions which did not have to do with
the property. and therefore it raises the
competent by reason OF extent ana
breadth Of experience. Looked at from
this standpoint, I am. through my wider
experience. the better qualified to answer
questions over the whole wide range Of
the business than any officer OF the com.
pany am sorry to be forced to make
such a statement.
Mr.. Rothermel-I now move we adjourn,
Mr.: Chairman. and continue this hearing
later.
The Chairman did not want to inter-
rupt you. but these gentlemen have for
some time felt that ought to adjourn
because it is very close to IL o'clock To
when, gentlemen, shall the hearing be-
continued? You will see by looking at
the calendar that the committee will be
engaged the first four daye Of next week