The Bridgeport evening farmer., 1913-10-04

further reduction should be made.
In support of this motion, Mr.. Will
son said:
'It appears from the report of Mr..
Field, the contents of which your COM
mission receives as being true, that
up to the end of 1901, this Bridgeport
Gas Light Company had invested of
stockholders money 100000 and no
more.
''In 1909 the stockholders apparently
invested $500, 900 more of their own
money, and up to February in 1913,
this was all gf their own money that
| ever was put tf1te the plant.
During the period from 1875 to the
end of 1901 this company steadily paid
ten per cent dividends.
When it closed its books December
81, 1901, it showed plant and equip
ment account valued at $4,000
when it opened them the next day
the account was increased by more
than 81, 100000.
'tOf this increase Mr.. Field says
there is no property listed on the
books of the company to show for 1t.
There is none because the directors
just suddenly say that what had been
worth $480000 was now worth $780,
600 more.
.'Mr. DIETRICH tells what happened
in his statement to Mr.. Field, Mr..
Dietrich said that these people, him
self included, wanted to issue a lot of
STOCK d1ld IISS IAC0 lAO
value of their property accordingly.
''But let US assume that these peo-
pie actually had property worth as
they claimed, in 1901. $1,5OO,OOO.
Where did they get it?
"They had put in at the outside but
$500, 900. Upon which they had receiv-
ed ten per cent. dividends, annually
during many years.
How extortionate must have been
their overcharges for gas during those
years. if the public besides paying
them a big profit for their money, paid
also for four times as much plant as
the investors in the business paid
Continued Mr.. Wilson, "On the
most favorable showing, the property
of this company cannot be worth
more at cost of reproduction now
than 81, $50, 0,000-from which must be
deducted depreciation for fifty years
for, as you are told by Mr.. Field,
they have never charged off a dollar
for depreciation, except within the last
two years.
Mr. Wilson contended that the
present value of the property cannot
present income of the company is suf-
fcient to warrant reduction of the
rate to eighty cents.
The commission ruled that it would
hear closing arguments before MAX
ing any order.
Other evidence offered showed re-
ductions of gas in New Haven from
95 to 80 cents since the last hearing
on the case.
The file of court papers in the case
forclosing the property of the Citi- |
zen's Gas company was offered, show |
ing the order of foreclosure, the ap-
praisa1 of the property for 100000 |
by Charles G. Sanford and David F. |
Read. The sale of the property as
committee for the court, by Frank
Miller, for $4,000, to Hanford B.
Weed
The order of the court for distribu-
ton of the proceeds of tn esale, show
ing that the stockholders received
nothing and the bond holders--who
were not insiders-but O,OOO, $4,000 |
of the sale proceeds having been con-
sumed for expenses.
The petitioners asked the commits
ton of the proceeds of the sale. show
a stock dividend of 100000 in 1902,
was Illegally issued, because there
were no net profits nor assets then in
being from which it was lawful to pay
a dividend And that the $95O,OOO
bonds constituted an improper charge
against the consumers of the com
pany, because they had been issued in
bad faith to acquire property at an
enormous excess over its fair value.
Tt was agreed that the commission
would cause to be made an abstract of
all the minutes appearing on the book
IF directors and stockholders meeting
relating to the requirement of the
property of the Citizens company.
Ralph J. Munson, secretary of the
company was called, and exhibited a
large map, showing the duplication of
mains where the two gas companies
had pipes in the same street. At the
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