The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-04-10

1902
Mr.. Coudrey-But I don't think IL is
fair TO take it for just one year. not fair TO
them nor to the public. II we examine a
series of years We can find out whether
Ahey are making an abnormal profit OF a
fair profit. The mere fact that the gas
companies throughout the country in our
large cities are much sought for by
large financial people and large holding
companies shows that there must be
good money in the business. do not
want to say anything against them. but
at the came time we are here represent
ing the District of Columbia, so to speak,
and if this gas company is not doing
what is right we want 10 find It on.
And If they are doing what is right, We
want to know it, We are not prejudics1
Jurors. none Of US. We are not even
gas consumers. Nearly all of us live in
hotels we are only here temporarily. so
it really does not make any personal
difference to us. But we viii pass on
from that question to the next one.
Mr. Humphreys-Wn you permit me
to say just a word in reply to that.
What I have already done for the year
1SO9-would that answer the purpose?
Mr. COudrey-NO. / do not want you
to take just one year, but We should al
least take ten years, the last ten years.
and then average it.
Mr.. Humphreys-What we have done
for this year-would not that answer
your purpose. If shown for ten years,
the amount Of earnings each year on the
investment?
Mr.. Coudrey-No. What ! want is the
amount of money put into the business.
| do not mean TO turn the earnings back
into the company.
Mr. Humphreys-You 90 not object to
that?
Mr.. Coudrey-I don't object to that
For instance. a gentleman told me here
the other day in Washington that he
was interested in a certain corpora
ton that made. think. $4,000 per year
on 100000 capital. That was his own
statement
Mr.. Humphreys-Not in this business,
however?
Mr.. Coudrey-No: not in the gas bust
ness. but in a manufacturing business
believe it paid % per cent dividends
Well. instead Of showing that they had
made 1856, 900 last year, he said that they
charged off $4,000 for depreciation, be
cause he said they did not want 10 pay
the corporation tax on that 100000, but
that they paid the same dividends. % per
cent. Now, according 10 these statements
that these concerns make up-Of course,
this statement will only show that he has
paid. think, $4,000 TO the surplus. while
In reality he ought to have shown $4,000
to the surplus.
Mr.. Humphreys would depend
upon what amount has been charged Tor
depreciation.
MIR. Coudrey-He confessed that under
ordinary circumstances he would have
CHARGED off that much. 7 rather imagine
that he also. prior TO that time, had
charged of a reasonable amount but it
was done to save the corporation tax Of
100000.
Mr.. Humphreys-Of course, I could 90
into that concern and probably in one day
prove whether It was a right charge or
not could not say accurately in that
time whether # was right amount to
cover depreciation or not. for the ques-
ton of depreciation is certainly very
serious one.
Mr.. Coudrey-Here, you are an expert,
and while I have never heard Of you
before
Mr.. Humphreys hope am modest
enough
Mr.. Coudrey-Because 1 have never coma
in contact with the gas business in any
manner, shape. or form in my life before
1 respect the fact that you are an expert
in your business. or this gas company
would not have sent for you as an expert
But l want TO say this to you: 1t seems
TO me that the gas company should have
one OF their officials here. They have evi-
IDENTIFY a general manager, a secretary, or
treasurer or some one who handles
their financial business, and knows what
they make. That is the only question.
This resolution was introduced for only
one purpose, and that is 10 prevent them
from issuing bonds and certain indebted
ness on any other evidence Of debt eX-
cepting betterments. You have read the
resolution, of course. Now there is a
rumor that they are going TO cut finan-
ciaI melon, so 10 speak, and I heard the
other day that they intend TO sell out
this gas company to some holding com
pany so that their profits would not ap-
pear TO be so large. 1 don't know any
thing about that. but we are here 20 find
out. and Il looks TO me that this gas
should have sent some Official
here 10 answer just simply one question.
whether they are making abnormal profits
or not
Mr.. Humphreys WIN tell you right
there possibly the reason, although I
don't know: probably I may have been
pulled into this case because I am one
in the gas business who has managed
all the departments OF the business. and
am therefore presumably qualified to an
swer all reasonable questions in connec-
ton with the business.
Mr.. Coudrey-How many officials have
they? Who is their president?
Mr.. Humphreys-Air Mclean, I think.
Mr.. Coudrey-Who is the vice president?
Mr.. Humphreys-That I don't know
that is. I have never come across him.
Mr.. Coudrey-Haye they a general man
ager? Is he here?
Mr.. Humphreys-Not that know OF.
Mr.. Coudrey-Is there a secretary and
a treasurer?
Mr.. Humphreys-Ye Mr. Orme.
Mr.. Coudrey-Is there a treasurer, too
Mr.. Humphreys am inclined TO think
that Mr.. Orme is the secretary and treas
urer but am not sure. They have the
regular officers.
Mr.. Coudrey-Of course. I don't want
10 say anything against their bringing
you here as an expert. but al we want
to know is one thing, and it seems to