The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1910-04-13
Company Official Gives This
as Average Rate for
Ten Years.
REQUEST IS MADE
FOR MORE FIGURES
Statement Being Prepared by Com
pany Official to End
Testimony.


concluded within a week OF ten days,
according 70 an agreement reached TO
day by counsel for the gas company and
Chairman Smith
> force Of accountants was put to
work on the gas Compauy's books today
for the purpose Of digging Up the finan-
cisl history OF the company from 1885 up
10 the present time This IS being done
Al the demand of Representative Coud-
Tey. author Of the resolution under
which the investigation is being con
Quoted
Testimony given BY the employees OF
the gas company At the hearing last
night showed that during the last ten
Years the average dividends Of the com
paEy were L per cent, and II vas this
disclosure and the admission by AttOr-
- ney GOldSbOrOugh, counsel for the gas
company, that q large portion Of the
present capitalization came from earn
ings turned back into the plant that
prompted Mr. Coudrey to insist Oh a
more elaborate financial statement than
the company has thus far been willing
10 submit for inspection
Bad Feeling Manifested.
Considerable feeling was displayed af-
ter the hearing was adjourned last
night, representative CAY Of viscon-
sin, who has been relentless in his ex-
animation Of witnesses. met Alexander
G Humphreys. the gas company's ex-
pert, as he was about to leave the com
mittee ROOM M Cary extended his
hand to the gas expert who not only
refused to take II. out told Mr.. Carey
that ne could not think Of shaking
hands with man w1O had treated him
50 diSCOUTteOuSly on the witness stand
Very WELL remarked AR Cary, as
he turned on his heel and walked TO his
Office
Mr. Humphreys made no effort 10
conceal his anger He declared TO more
than one member Of the committee than
in his forty years experience as a gas
expert ne had never been treated a.
disCOuTteOusly as during his appearance
before the House District Committee
and he further frankly declared thai
the questions asked by the members OF
The committee indicated very plainly
that they were ignorant of the subject
they were seeking TO investigate
Knows Nothing of Finances
William F. Hart. general manager Of
the Washington GssIieht Company. was
the first witness called last night, but
ne remained on the witness stand only
about two minutes Mr.. Hart said that
his official title was a misnomer. that
he knew nothing about the finances Of
the manufacture of gas, and that his
work really consisted OF being an out
side superintendent IN charge OF mains,
etc
Mr. GoldsborouEh followed Mr. Hart,
and made a statement in defense of the
gas company. There were two reflections.
he said, which he wished TO dispose Of
The first was the reason for having
Alexander G Humphreys. an outsider,
appear before the committee for the
company The attorney Sefd that IL was
done because the company felt that L
He said that Mr.. Humphreys IS one Of
the foremOSf gas engineers in the world
and for one-thiTd Of a century has been
familiar with the property Of the local
gas company.
Offer Of 100000 Refused.
Mr. Humphreys had appraised the
property for a New York concern. he
said, at the time the Washington Rail
way and Electric Company was brought
and as a result Of his appraisal 100000
was offered for the property, which ofTer
was refused by the stockholders
Another reflection which Mr.. Colds
borough wanted to dispose of was that
which. he said. had been cast on Mr..
Humphreys ability as an engineer
while he asserted Mr.. Humphreys was
admittedly ole Of the foremost II not
the foremost gas engineer in the world
MI 60 dsoorouSh then referred 10 the
COu0Tey resolution and declared that its
adoption would be in effect cOuffscatfou
and mat there was no reason WIN the
sas company should be singled out from
tons
Mr.. CoUdrey said that what the com
nittee wanted to know was whether the
gas company is making excessive Oro+ifs
Is there objection to the resolution
asked.
Mr. GoIdsborough said that the s.s
company objected TO IL on the ground
that the gas company is only one OF
the public service corporations in Wash
ton ana unless the gas company has
done wrong il should not be singled out
for punishment. and he also stated
that in his opinion the resolution is
Er- COudrey said that the fact that
Alexander Humphreys, the gas expert
employed by he gas company, was IN
able 70 80 into the finances Of the COM
pany and brought In a lot OF extrane-
Gus matter led him to believe that the
company was making abnormal profits
Mr. GOldSbOTOugh said the gas COM
psny was u'7dercapitalized from 20
Fer cent TO 90 per cent The electric
light company, he said was capitalized
Tor twice as much as the gas com
Iany and 0Ily paid half as much taxes
t. the District.
Says Earnings Are Small
he said that fifty years ago s5eo.6o0
was put into the gas company He
said the company was entitled to a cap
italization Of SlO,0O0,0O0 on its plant, not
counting its franchises. He said that
in point o. fact the earnings are small
when the investment is taken into con-
s.jeratiOn He said it made no differ
ence whether the COmpaDy-s books were
burned thirty years ago
There IS no need Of dragging up the
ashes Of a dead man. said Mr.. Colds
borough, and there is a moral statute
OF limitation as wei as legal one
Mr.. Goldsborough said the gas com
pany had reduced the price Of gas IN
the past and would do so in the future,
provided the cost OF materials did not
increase
Mr. Cary asked Il the reduction was
real Mr. GOldsboTough asserted that
the reduction vas real whereupon ar
Cary produced a number OF gas bills
furnished him by consumers who. by
reason Of the necessity Of closing at
specified hours, burn the same amount
OF gas each year
These bills. said Mr- Cary. showed
That there was no reduction IN the price.
Mr.. GoldsborouEh said investigation