The Washington herald., 1910-04-05

COMPANY
Mr.. Humphreys am not aware of
that; don't know anything about it.
Mr. Goldsborough-I can answer that
question. It has not. II could not pos
sibly have, in any way.
Mr.. umphreys-Continuing my answer,
take, for instance, the company in which
was chief engineer and general super
intendent for many years-the United Gas
Improvement Company, of Philadelphia
owning probably fifty different works in
different parts of the United States. My
recollection is that when started with
that company in 1885 they had a capital
of $4,000 in bonds and 100000 IN
stocks. To-day they have. think. $780,
OO0.000 Of capital. and not a dollar OF It is
water. That $50,0Oo.0oo has been furnished
in part by direct contributions from stock
holders and by issuing new stock, and in
part by capitalizing their earnings. For
a year or two they did not pay dividends;
then they paid 4. then per cent, and
finally they paid per cent and for
years they have been paying that amount
IS per cent.
Mr. Pearre-what company did you say
that was?
Mr. Humphreys-The United Gas I'm
provement Company. OF Philadelphia,
with works at Kansas City. Omaha. Des
Moines. and many other places Their
policy was. the managers being prudent
men. not 10 distribute all their earnings
in dividends, which meant that as the
years went on they accumulated a sur
plus: but some of the surplus has since
been represented by an Issue OF stock.
just under what legal form that is is
sued I am rot for the moment prepared
TO say. But I know that some stock has
been issued for surplus earnings which
were invested "a plant There has never
been any opportunity TO distribute those
earnings n cash. because they needed
that surplus and mora 20 take care Of the
extension of the plant, and that is the
same with other companies in which
have been interested II IS the same in
our company in Buffalo, where we com
pete with S0-cent natural gas. We use
our very small surplus In making inn
provements.
Mr.. Pearre-How much do you receive
in Buffalo for your gas per 1000?
MIR. Humphreys-One dollar; that IS. we
furnish 81 Illuminating gas In competition
with 30-cent natural gas.
Mr. Aiken-Can you tell as what the
average price for gas Is all over the
United States?
Mr. Humphreys-In averaging that up I
don't know what it would come to- but
can give you the prices In the different
cities. The true average could only be
found by taking the product Of the
amount sold at each separate price and
dividing the totals of all of those prod
ucts by the total amount sold by all the
companies.
Mr. AilSen-Take the large cities, such
as Chicago. Boston. Cleveland. New York.
and so forth.
Mr.. Humphreys-New York City is sell
ing gas for 80 cents per thousand; and
under the ruling Of the United States Su-
preme Court. not final. as you know. it
is making on that, on the actual amount
invested in the gas end of its business,
about per cent. And I would like TO
say upon a statement lately issued by
the public service commission OF New
York No. /. TO the effect that they are
earning much more, that their statement
Is absolutely Incorrect, and 7 can prove it.
Mr.. Pearre-They claim to earn how
much!
Mr.. Humphreys-About 4 per cent on
the actual investment in the gas business.
Mr.. Cary-Mr Humphreys. do you re-
member that the last time you appeared
before this committee I made the ass, =
ton that the city OF Milwaukee furnish. [
gas at a price OF from 60 to 50 cents IL
the consumers?
Mr.. Humphreys remember that we
had some little talk about It.
Mr.. Cary-And Milwaukee is a city a
little larger than Washington, which
hauls its coal from Buffalo. about 1000
miles or more. upon the lakes. while
Washington, do not think. has 70 carry
its coal that far Yet we are able to sell
gas in Milwaukee at a price OF 80 10 50
cents thousand. according 20 the
amount used. after hauling the coal that
great distance. And they also return to
you the cost OF a meter if you come up
to the amount expected to be used by
one family. I had a return the other day
of sl.2O. And, besides that, every six
months they give each and every man
who works for them 10 per cent Of the
wages that they earn as present, and
other presents at Christmas time.
Mr.. Goldsborough-Don' thes use coke
oven gas there?
Mr. Cary-Bately the -solvay
Coke Company has made connection
with the Milwaukee Gas Company.
Mr.. Goldsborough-And hasn't that been
done for several years?
Mr.. Cary-Yes. three or four years. but
this price has been maintained for a
great many years; ten years, anyhow.
Mr. Humphreys-The present price has
been maintained ten years?
Mr.. Cary-About six years, should
judge.
Mr. Humphreys cannot agree with
you as TO the Semet-Solvay Company, be-
cause I have a statement before me, IS
sued by the vice president and general
manager of the Milwaukee Gaslight
Company. Mr. Glass. which is probably
the most complete statement of gas
prices that has ever been issued in the
United States.
Mr. Cary-What date Is that?
Mr. Humphreys-l9N. I was going to
mention the date The price in 1907 for
the first 10OOO cubic feet was 50 cents.
Bear in mind that this lower price is
based upon the amount that IS used. The
first 10000 feet per month will cost you
50 cents per thousand. and. of course. that
takes IN probably 90 per cent Of the con
sumers Of the city. Then if you con-
sumo 10000 feet more per month, it is
20 cents per thousand, and then for all
in excess OF twenty thousand feet per
month it is so cents per thousand.