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

ness, but in a manufacturing business l
believe It paid 20 per cent dividends.
Well. instead Of showing that they nad
made $3.50. 900 last year. he said that they
charged Off 500, 600 for depreciation. be-
cause he said they did not want to pay
the corporation tax on that 100000. but
that they paid the same DIVIDENDS. ~
per cent Now; according to these state
ments that these concerns make up-oi
course. this statement will only show
that he has paid think. $4,000 to the
surplus. while in reality he ought 10
have shown $4,000 to the surplus.
Mr.. Humphreys-That would depend
upon what amount has been charged for
depreciation.
Mr. .Coudrey---He confessed that under
ordinary circumstances he would have
charged of that much. ! rather imagine
that he also. prior to that time naa
charged OFT reasonable amount, but II
was done to save the corporation tax OF
100000.
Mr.. Humphreys-Of course. could go
into that concern and probably IN one
day prove whether it was right charge
or not. I could not say accurately IN
that time whether it was right amount
to cover depreciation or not. for the
question of depreciation is certainly
very serious one.
Mr.. Coudrey-Here. you are an expert.
and while have never heard OF you De
Mr. Humphreys hope ] am modest
enough
(, Mr.. Coudrey-Because 1 have, never
come In contact with the gas business IN
any manner, shape or form in my ne
before. I respect the fact that you are
an expert in your business, or this gas
company would not have sent Tor you rs
an expert. But want to say this 10 you:
II seems to me that the gas company
should have one Of their ofhcfals mere.
They have evidently a general manager
secretary, or a treasurer, or some one
who handles their financial business, ana
knows what they make. That Is the oniy
question. This resolution was introduced
for only one purpose, and that Is 10 pre-
vent them from issuing bonds ana Ger
tain indebtedness on any other evidence
Of debt excepting betterments You nave
read the resolution. of course Now there
is rumor that they are going to cut
financial melon. so to speak. and
heard the other day that they intenu 10
sell out this gas company to some nora
ing company SO that their pronts Wouio
not appear to be SO large. l don't know
anything about that, but we are here 10
find out. and 1t looks to me that this gas
company should have sent some omciai
here to answer just simply one question.
whether they are making abnormal pronts
or not.
Mr.. Humphreys-I will tell you right
there possibly the reason, although l
don't know: probably l may have been
pulled into this case because l am one
in the gas business who mas managed
all the departments OF the business. ano
am therefore presumably qualified to an
swer all reasonable questions In cennec-
tlbn with. the business.
Mr. Coudrey-How many officials nave
they? Who is their president?
Mr.. Humphreys-Mr. Mclean. THINK.
Mr.. Coudrey-Who Is the vice president?
Mr. Humphreys-That l don Know
that is j have never come across him.
Mr.. Coitdrey-Have they general
manager? Is he kere?
Mr.. Humphreys-Nott that i know Of.
and q treasurer?
Mr.. Humphreys-Yes Mr.. Orme. -
Mr.. Coudrey-Is there treasurer,
too
Mr.. Humphreys-I am inclined to
think that Mr.. Orme is the secretary
and treasurer. but am not sure. They
have the regular officers.
Mr. Coudrey-Of course, / don't want
to say anything against their bringing
you here as an expert. but all we want
me the off1cials of the gas company
could come here and answer these
questions in very few minutes II they
would bring their figures.
Mr.. Humphreys Let me suggest
there. Mr.. Coudrey. that you think of
the questions that have been asked me.
and then inquire Of yourself whether
any one Of these men would be able TO
answer. Assuming that have nothing
to >do with the Washington company.
brought into this case Is because !
have had general training In the
business. have some reputation as an
expert In the business. and think II
is because they want to get In man
who is hot
MI: Coudrey-Do not belittle your
own ability because. they have sent Tor
you. because you are an expert. !
think perhaps you are entirely TOO
modest.
Mr.. Coudrey-In answering questions
in respect to the other gas companies
But, SO far as am personally conceIheo,
1 do not care rap as to the SITUATION
in other cities. What l want 10 Know rs ~
whether they are charging too much IN
this city I do not think we have any
thing to do with any other city. For IN
stance, in other cities they charge dihef-
ant prices for different characters OF use
In st. Louis, my home town. we have TWO
nrices the fuel gas being the cheaper.
Mr.. Humphreys-Haven't they changed
that lately?
Mr.. Coudrey-That is my impression
am q gas user In ST. Louis. My impress
sion is that they charge dinerent n pr,u so
Mr.. Humphreys-I am inclined TO tnlnk
that they have come or are coming pach
to one meter. I know the system OF Oil,
ferent rates for different uses mas createI
a great deal of dissatisfaction. ana !
thnu1ht thew lad changed back to one
rate. The rates quoted. as already .eA-
nlained. were from a list prepared TWO
Years ago by Mr.. Glass of Milwaukee.
Mr.. Coudrey-Probably they are gong
TO change it. You quoted prices IN az
ferent Cities and you mentioned Rtch-
mond, Va; Providence. r. l.: st: faui'
trenton and. l think. Wheeling. W. va.
II we are going to try to make eompa.
sons let me say that Washington Is aoout
tha tenth CITY in the Union. IS 1t not?
Mr. Notwithstanding like that, !
think :.
Mr. coudrey-We will say the tenth or
the twelfth. whatever 1t is. We ought TO
take the ten or twelve large cities anu
make our comparisons in order 10 nave
more even chance. 1t is not fair to put
In such places as Richmond, or smaier
njaces. In other words. 1t looks TO me
as if c.,a-.v that
Is not my doing. g., do ,,o,,
an In Justice You are here TO look aIter
the gas company, and We are jurors, OF
raferees so to speak. between the .eas
comnanv and the public: and II 10 haroiy
70 ir to 20 to work and quote sucn places
that are favorable to the gas stuatlon--
Mr.. Humphreys-Rut lei me answer
that I am not Responsible LOT oia.. ara,
Mr. Coudrey-You uld MOI h'ehtioi' MI
waukee, did you?
Mr.. Humphreys-oh, yes. But ! aio hot
bring nm the question as to. the other
places This was called for by members
~ the committee. was particularly
asked to give the prices at these places.
. ichmond was mentioned, Wheeling was
mentioned, and most of the others ola