The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-04-10
MIR. GOldsborough-Mr. Chairman,

Mr. Coudrey-fou viii have your turn
later, Mr.. Goldsborough: l am not
through with the witness yet. Now, doc
tor. you were telling us about the earn
ings OF the gas company each year. DO
you know each year the amount OF ac-
tual cash put into the company; for in
stance, 1t is not fair, IN my opinion. or
in my judgment. that you should show
US what they earn each year on the
amount OF money in the business: for in
stance. for last year they have earned 30
per cent, and spent that on betterment:
turned IL back IN, and not paid il out. and
the other part has gone to betterment 1
think we ought to get at that. in order
to make an intelligent report on the reso-
lution-House resolution No. I4S-which
is the cause Of this investigation. II is
10 find out what amount of money the
gas company has earned on the actual
amount Of money put into the company
Mr. Humphreys-Let me ask you, Mr.
Godfrey. so that 1 may know Just ex-
actly what you desire. Do you mean by
the money put into the business the
money that is put in irrespective of the
money earned in the business?
Mr.. Coudrey-Yes. 1 don't think we
ought to take into consideration the
amount OF money they have earned III
the business, because that is not fair
What We want to know, II We possibly
can ind ont, is whether the gas COM
pany is overcharging the public. Now.
don't know There are all kinds OF
rumors. and where there is some smoke
1 &c sg-e 2 sTraTr
not overcharging the public then, so far
as l am concerned. I propose to make a
report accordingly; and if they are over
charging the public. we ought to ind
1 il out
| Mr.. Humphreys-That is right. sir
will attempt to reply to one point first,
namely, about whether they are making
50 per cent, and putting some Of it back
into the business. OF course. that can
not be done without jockeying the books.
Mr. Coudrey-Without segregating the
books.
Mr. Humphreys-Of course. this par
/ ticular statement l have not analysed in
detail ! have been over the statements
in the past. but this one Cor 1909 I have
not compared I'm detail with the books.
have no reason, however, TO believe.
| from my past experience with the COM
pany. and after analyzing their books
/ in detail on previous occasions, that
there is any material difference between
us as to facts. This statement for 1863
| itself shows. as l have already read,
that they did put into extensions and
! betterments during 1909, SIS, 1893
! Mr. pearre-When2
Mr. Humphreys-This last year. from
/ their earnings But If you will look at
/ page . YOU will see that 20 do that they
l had to draw upon the surplus; also It
must not be forgotten when / state the
actual earnings ] am stating them ire
spective of how those earnings were en-
/ pioyed. I have stated the total earn
/ ings
Mr- COudrey-NOw one moment. In or
| der to get an intelligent idea so as 10
make a report, don't think that the in
formation you have given US is what
/ want
AR Humphreys-Well I want TO try
to give it to you, and hope 20 have
Mr.. Coudrey-wait just a moment Can
you tell US how much money they are
J
has been put into the business?
Mr.. Humphreys can tell you. as
stated already. what their earnings are
in dollars and cents. Now. when you
come 10 get percentages. II, OF course
depends upon what you are going 10
figure upon. / have figured the rate upon
the amount Of their issued securities. I.
have also figured on their physical assets
/ have further figured upon what I con-
sidered the value of the plant as a going
concern Now you want 70 know abso-
lutely how much Of that money that I
say they have in the plant was taken
from outside money and put in as capt.
tai. and how much was taken from the
earnings and put in. isn't it?
Mr.. Coudrey-Yes; but here IS the thing
in a nutshell. I want TO ask you-and
II you cannot answer 1t directly. then let
US go on, because We will really be vast
ing time: we had better go 10 another
subject-but the question is, can you to-
day 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.
Mr.. Coudrey-Yes; can you answer that
to-day?
Mr.. Humphreys cannot answer that
without regard TO all of the years. but
with regard TO last year I have given it.
Mr.. Coudrey-But I do not want one
year What 1 want TO do is this For in
stance, they may have made money and
abnormal profits in 1907 and put it in
their business.
Mr. Humphreys-But isn't this the COM
mon sense way OF looking at it. Mr.. Cou-
drey II you will take the prices for gas
charged by the Washington Gaslight Com
pany 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
lngton that the prices here compare IA
vorably with other cities. then It would
be fair 10 assume that they have not
been overcharging the consumers. and
that they we're entitled
Mr.. Coudrey-But you do not answer.
Mr.. Humphreys-You may think l am
not answering. but I am answering your
question. and ] viii show you that I an,
in a moment
Mr. CONTEMPLATION me.
Mr. Humphreys-Now that would deter
mine whether there has been an over
charge TO the consumers. Now. does if |
make the slightest difference in fairness
to the company. or 10 the consumers.
what they did with their earnings mi
they decide to pay out certain amount