The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1910-04-10

LII you ike you might go back twenty
/ would be satisfied with even ten years
/ ana you should ind that BY comparing
/ prices throughout the United states
vlth Washington that the prices there
/ compare faVOrablv with other cities
/ tnen Z would be fair TO assume that
they nave not been overchsrging the
consumers. and that they were en-
Mr. Coudrey-But YOU do not answer
MI Humpn~eys-Tou may think l am
not answering but I am answering your
question. and I will show YOU that an
I IN moment
Nj Confederation me
Explanation by Witness.
Mr. Humphreys-$ow that would de-
] termine whether there has been an
Iovercharge 70 the consumers. Now, does
Il make the slightest difference in fair
ness 10 the company. or 10 the con-
sumeTs. what they did with their earn
ings2 II they decide TO pay out GER
I tain amount in dividends and 70 reinvest
a certain amount in the necessary eI-
I tensions Of plant rather than TO pay Il
out all in dividends, il does not alter
the situation at all. nor does IL affect
the question OF fair return upon invest
ment- We csI give you've could not
l give II today. because we would have TO
go back ter or twenty yearS-but We
I can give y0u what the company added
d >
and we COul0 snow what the earnings
nave been year Dy year If you should
| AXE the receipts as some nave attempt
&c TO DO here, and calculate the rate
! upon the seer rites Issued. Of course
YOU 90 aStray You have to consider
IN each case ~ you have said your
self, the money that has been put in
{ tne business. ] nave enoeaVOreo 10 show
/ that they have put so much In the
business, OF they have assets OF such "a
| value which they have paid for their
49,
rate OF their earnings on that invest
nent IS 50 much in effect That ans
| Wers your question. does II uOtZ
Mr. Coudrey-No, ] don't think it
does I simply wanted to know nov
much actual money these gentlemen
have put into their business and how
much they are making each year Now,
would not their books show II?
Mr. HumphrevS-Tes 7 have already
shown II this morning for the year 1902
M COudrey-BUt I don't think Il Is
/ fair TO take IL for just one year, not fair
20 them nor 10 the public II We exam
Inc q series OF years We can find out
whether they are making an abnormal
Proht or fair profit The mere fact
that the gas cOmps uies throughout the
country IN our large cities are much
sought for by large financial people and
/ large holding companies show that there
must De good r>@ney in the business
co not WanF 70 say anything against
] them. but at the same time We are here
! representing the District Of Columbia
so 70 speak, and II this gas company IS
not doing what IS right We want TO find
Z II out Ard If they are doing what Is
right. We want to know IT. We are not
preJudlCed jurors, none or US We are
not even gss consumers Nearly ali d
Us live IN hotels We are only here ton-
porarIly, 50 Il really does NOT make INV
personal difference to US But we win
pass on from that question TO the next
one
Work Done In 1000
Mr.. Humphreys-WnI you permit me
10 say just q word in reply TO that
What 7 have already done for the year
Is09-woUId that answer the purpose
M Coudrey-No- DO not want you
20 take just one year, but We should
At least take ten years the last ten
years, and tEen average It.
Mr.. Humphreys-Whst we have done
for this year-wOuld not that answer
your purpose. II shown for ten years.
the amount OF earnings each year on
Mr.. Coudrey-No. What want is the
amount Of money put into the business
I 90 not mean 10 turn the earnings back
Nh. HumpnTreys-You do not object to
that
Mr. .Coudre ~ don't object 10 that.
For instance, gentleman told me here
ne other day ia Washington that he
was interested in certain corporation
that made, I think, S350,0o0 per year OH
s1-O0c.00o capital That was his own
NJ. Humphreys-Not in this business.
however
sfr. Coudrey-No. not in The gas bust
ness. out In a manufacturing business
believe IL paid % per cent dividends
We'll, instead OF showing that they had
made $50, 600 last year he said that
rnev charged of 10000 for deDrecia-
lion. Eecause he said they dtd not want
% pay Tire corporation tax on that S10o.-
COO but that they paid the same divi-
lends, q per cent Now according 20
rfTese statements hat these concerns
make up-of course, this statement viii
only show that he has paid think
100 20 the surplus while IN reality
ne ought 10 have shown $4,000 70 the
surplus
Charges for Depreciation
NJ E4Ian chreys-Thsr would depend
upon. VIVA amount has been charged for
depreciation
ordinary circumstances he would have
charged of chat much rather imagine
that ne also. prior 10 that time had
charged of a reasonable amount. but II
was done TO save the corporation tax OF
$4,000
Dir. Humphreys-Of course. I could go
into that concern and probably in one
day prove whether il was 4 right charge
or not I could not say accurately in
q
TO cover depreciation or not, for the
question Of depreciation is certainly a
very serious one
Mr.. Coudrey-HeTe. you are an expert
and while ] have never heard OF you
before
Nj Humphreys hope I an modest
enough
M COudrey-BeCau I have never
come in contact with the gas business
in any manner, shape. or form in my
life before. respect the fact that you
are an expert in YOUR business OF this
gas company would not have sent for
YOU as an expert But ] want TO say
this 10 YOU. II seems 10 ne that the
gas company should have one Of their
officials here. They have evidently a
general manager, q secretary, or a treas
I1rer. or some one who handles their
financial business and knows what they
make That IS the only question This
resolution was introduced for only one
purpose. and that IS to prevent them
from issuing bonds and certain indebt-
edneSs on any other evidence Of debt
excepting betterments You have read
the resolution, OF course Now there is
a ruIuor that they are going to cut a
financial melon. 50 70 speak. and
heard the other day that they intend
TO sell out this gas company 20 some
holding company. so that their profits
would not appear 10 be so large I