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

Mr.. ccudrey-Yeu viii have your tern
later. Mr. GoldsborouKh: 4 am not
through with Witness vet Now >doctos.
you were telling us>abouts the earnings 81
the-gas company each year. Do you
know each year the amount sof actual
cash put into the comhany; for instance.
It is not fair. in my opinion. or In my
Judgment. that you should show us what
they earn each year on the amount q
money In the business: for instance, Tor
last year they have earned 90 per eeni.
and spent that on betterment: turned IT
back in, and not paid it out, and the
other part has gone to betrerment. II
think we ought to get at that in order
to make an intelligent report on the reso-
iution-House resolution No. 14S-which
Is the cause OF this investigation. 1t Is
gas company has earned on the actual
amount of money put into the company;
Mr.. Humphreys--Let me ask you. Mr..
Coudrey, SO that l may know just ex-
the money put into the business the
money that Is put in irrespective OF the
money earned in the business?
Mr.. Coudrey-Yes. l don't think we
ought to take into consideration the
amount of money they have earned In
the business. because that is not fair
What We want to know. IL We possibly
can ind out. is whether the gas company
Is overcharging the public. Now, I don't
know. There are all kinds of riimors, and
where there is some smoke there is -usu-
ally some fire. II they are not overcharg-
ing the public. then, SO far as am con-
cerned, l propose to make a report ac-
cordingly: and If they are overcharging
the public. We ought to find 1t out.
Mr.. Humphrey nat is right, sir. i
will attempt to reply to one point first,
namely. about whether they are making
90 per cent, and putting some of it back
not be done without jockeying the books.
Mr.. Coudrey-Without segregating the
books.
Mr.. Hu,nphreys-Of course, this par
ticuiar statement 1 have not analysed in
detail. / have been over the statements
In the past. but this one for 1909 1 have
not compared in detail with the books.
l nave no reason, however, to believe.
from my past experience with the COM
pany. and after Analysing their books
in detail on previous occasions. that
there is any material difference between
us as to facts. This statement for 1909
itself shows. as 1 have already read.
that they did put into extensions and
Mr.. Pearre-When9
Mr.. Humphreys-This last year. from
their earnings. But II YOU will look at
page you will see that to do that they
mad to draw upon the surplus; also it
must not be forgotten when I state the
actual earnings l am stating them IRE
spective of how those earnings were en-
ployed l have stated the total earn
ings.
Mr.. Coudrey-Now one moment In or
der to get an Intelligent idea so as to
make report, don think that the in
formation YOU have given us is what l
want ~t-t.
Mr.. Humphreys-Well, l want to try
to give 1t to you. and / hope to have
Mr.. Coudrey-Wait just moment Can,
you tell us how much money they are
making each year on the actual cash that
has been put into the business
N
stated already, what their earnings are
In dollars and cents. Now. when you
come to get percentages, it, of course,
depends upon what YOU are going to
figure upon. I have figured the rate upon
the amount of their issued securities.
have also figured on their physical assets.
1 have further figured upon what | con-
sldered the value Of the plant as a going
concern. Now you want to know abso-
lutely how much Of that money that l
from outside money and put in as CAPT
tai. and how much was taken from the
earnings and put in. isn't it?
Mr. Ceudrey-Yes; but there is the
thing in nutshell. ] want to ask you
and if you cannot answer it directly,
then let us go on. because we will really
be wasting time: we had better go to
another subject-but the question is, can
you today tell US how much money they
have earned each year,. Can you also
tell us how much cash has been put into
that business?
Mr.. Humphreys-For the year?
Mr.. Coudrey-For each year.
Mr.. Humphreys-For each year?
MI Coudrey-Yes; can you answer that
today?
Mr.. Humphreys-i cannot answer that
with regard to all of the years, but
with regard to last year / have given it.
Mr. Coudrey-But do not want one
year. What / want to do is this: For
instance, they may have made money
and abnormal profits in 1907. and put it
in their business.
mon sense way of looking at 1t. Mr..
Coudrey. If you will take the prices for
gas charged by the Washington Gas Light
Company through a succession OF years
If you like you might go back twenty
years. and 1 should think anybody would
be satisfied with even ten years-and
you should find that by comparing prices
throughout the United States with Wash
ington that the prices here compare ia
vorably with other cities. then it would
been overcharging the consumers. and
that they are entitled
Mr.. Coudrey-But you do not answer
Mr.. Humphreys-You may think I am
question, and will show you that l am
in moment.
Mr.. CONTEMPLATION me.
Mr.. Humphreys-Now that would deter
mine whether tnere mas Deen an over
charge to the consumers. Now, does it
make the slightest difference in fairness
to the company, or to the consumers.
what they did with their earnings? II
they decide to pay out certain amount
in dividends and to reinvest a certain
amount in the necessary extensions Of
plant rather than to pay 1t out all in
dividends. 1t does not alter the situation
at all. nor does 1t affect the question of
fair return upon Investment We can
give you've could not give it today, be-
cause we would have to go back ten
or twenty .years-but we can give you
what the company added in the way Of
investment. year by year and we could
show what the earnings have been year
by year. If you should take the receipts.
as some have attempted to do here and
calculate the rate upon the. securities
issued. of course, you go astray You
have to consider In each case. az you
have said yourself the money that has
been put In the business. I have en-
deavored to show that; they have put
so much in the business. or they have
assets OF such a value which they have
paid for. their earnings have been SO
much and the rate of their earnings on
that investment is SO much. in effect
That answers your question. does it not?
Mr. Coudrey-No I don't think 1t does
simply wanted to know how much
actual money these gentlemen have put
into their business and how much they
are making each year. Now. would not
their books show It?
Mr. Humphreys-Yes: ] have already
shown 1t this morning, for the year 1909.
Mr.. Coudrey-But don't think it is fair
to take 1t for just one year. not fair to
THIN nor to the public. If we. examine a
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