The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1910-04-05
Total Cost at the Burner.

" .
I Air GOIdsborough-Ees
M Eumphreys-Thati IS, the total cost
az tie burner is something over o. cents
Z per IhOusand2
/ Ar- Go-ds5orough-Sixty cents a thou
( sand 10 make i and deliver II 10 the
I consumer az re meter, So that If we sell
I Ii az 81 cents thousand all that the
company ma66s is sd cents a thousand
+ and, OF course, ..Ot So cents. Il thev sold
/ u - - cents thousand they would
make - cents and u rEel sold IL az -
/ cents a thousand they would MAKE Ia
cents a thousand
MI Hump 1regS-TEe cost ue~ rH0-rs-
ana snoV-d be put on the amount Of gas
SoiQ. ami not upon The amount maze
and TIA is cutie q little hove 81 EMS
nave Inquired the amount Of gas sols II
Dc about So cents in cost
Mr. Humphrey GoIdsborourr
1yes not know The exact figure and ~
t VIII tel you So The question is II the
company charges 81 cents per thousand
and II they sell ZC54.-o5 feet of eas
at-1 II ~ costs gu cents per thousand.
what viii be The profc2 II IS simply a
matter OF arltlmertcal calculation Il
SHOWS mat rn5-e w-u be 50 cents profit
f 'ten Wil oe S5l6.42'-5a. IN that an
SNtf i want u distinctly understood
. tHat >1e question addressed 10 re takes
mo cyLlS-l eE-a-lol conditions which do
ltl Ae-l in me cost Z IS not SO cents
q
company statement here with the cor
recuon that I speak or. IN item Omitted
Ecr depreciation and repairs and We an
certainty know that repairs should BE-
included IN tile cost
Mr. CGZ-Whar did they charzA for re-
PAIRS and reQ-acemeuLS2
1lr- pEreyS-There was actually
expended for repairs SS-- ~. 90 ana II Won
VII permit me. / VIII explain just how
y IS ihey estimate that the upkeep Of
the plant viii cost cents per thousand
/ leeL made, and they make BIZ that q
cnarge ot $l6l-aS1-5+ for the wear. They
nave. during the year, actually expended
SOS Ios repairs. and they deduct
/ lnat. leaving an amount Of S7S7I4S5
"nlcn tley write up as part OF the cost
anu Sow a. a cre--- 20 cover the ac-
eEled lan-Lty as against acc-uiuE
depreciation, so tLaL the total amount OF
The actual repairs made. and the al
Z iQwance made for accrul1E 6eprecia-
computing those toge-her-is S-61 .537.5t.
Vow IN the case 20 which 7 have re-
-errec namely. the separate calculations
TO show lle cost per thousand al The
burner. none Of tI-at has been included
( IN the cost.
For fear there may be confusion IN
connection with the -nuark made in the
Z depreciation, make the point that de-
probation. which - EgureG on the basis
OF cents per thousand Tor manufac-
Z tured gas, THIS 10 include also repairs
I Tor the purJOse and if there was cor
rectlon I'M reduced. the earnings would
be cut down COrreSpOndinEly 70 the
amount pU- IN as an additional reserve
Tor depreciation I think. Mr. Cs1zf rrnan
I that that viii make the matter entirely
clear.
Questioned by the Chairman
The Chairman would Ike TO ask
YOU a question, Mr.. Humph- eys. You
fgure the price Of gas at s. cents2
Mr. HumphreyS-The cost. M Chair
man, per thOUSa nd
+ The Chainnan-Yes; and they are sell
I Ing gas To- 90 cents. Now, that would
{ be % cents On s. cents.
Mr. imlpn -eyS-But Of course they
/ did not g % cents per thousand las
year.
/ The Chst.nan-Eut We VIII merely as
sumo thaU-22 cents upon o. cents. Jus
| reduce that by ] cent. and call Il -
/ cents. and thcI. b. reducing the 81 cents
| by ] gent, and making il IS cents. then
( we have D cents on s. cents. or one
third or 53i9 Per cent 7 would ike 10
/ hear your explanation with reference TO
/ that is not that 5a-s Ter cent upon the
I investment
Mr. HUmphreys-No. sir.
The CEalrman-That is what I would
| Ike 10 have your explanation upon
Mr.. Humphreys-Buu before / start in
I want 10 draw attention 10 a fact that
might be lost sight Of Last year these
profits were not made On the basis OF 80
cents, for il only got 20 cents for q part
OF The year That is Just 10 remind YOU
Of that fact, however
Now, in answer 10 y,iUr question. that
would not be a return of G5s per cent
upon the investment, hut s. per cent Of
the selling price. This very report which
have before me. The Company s report,
also shows that the value of the plant,
exclusive of working capital and fran
Chise is SS,603 539 IS. that is exclusive Of
the working capital. and the working
capital alone should be at least = or 50
cents per thousand fees sold per year.
( The statement made b. my firm showed
that on December /, 1907, the COMPANY
had almost exactly SSO00,000 in physical
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