The Washington times., 1914-03-14

early earnings and the financial con-
duct Of the gas company are worth
rereading. by the people of Wash
ington. In part he said:
Senator Spooner. on page three OF
that report. in referring to- some OF
the capital stotk of this company. uses
the language | am about to read. BY
the way. it is well to remember that at
one time in the history of this country
they burned up all of their books so
that il is perhaps AN imptbsibil;ty to
get all of the information pertaining to
their history, their growth, and their
manufacture and sale of gas, because
all the evidence was at one time de-
Stroyed.
On page three Senator Spooner uses
this language:
1T is difficult to resist the suspicion
arising from an examination of the
crease Of capital from 1872 to 1888, aS-
gregating ss0G.00. that they represent
nothing else than stock dividends, how
ever called, in addition to the arSe
money dividends from time to time de-
clared and paid by the company"
He finds that they have been paying
dividends. most of them at rates that
| think everybody will concede are
away beyond what public utility cor
poration of this kind ought to bs al
io"eu 10 earn. bet me fedu so'e
In 1855 they paid 10 per cent on sd" ooo
capital. in 1876 they paid 10 per cent:
In 1857 they paid 10 per cent. In lS;S
they paid 10 per cent; In 1859 they pa,a
rent. In 1861 they paid 10 per cent. In
ISs2 they paid 10 per cent. And In iss5
they paid 10 per cent.
am giving these figures to show
that even though you concede that 10
the corporation should be allowed to
have, they have at least been getting
through practically all the years that
have passed sufficient return. SC that
for a larger dividend and allowance.
In 1862. 10 per cent: in 1853, 20 per cent.
II is alleged. says Senator Spooner.
that no dividends were paid in 1864 and
1855. Whether this is true or not.
cent was paid on S5OO.cW and in Aug
ust per cent was paid on 81 0OO.0G0. In
1867. 10 per cent was paid. In 1873, 10
ner cent, and in 1859. ~ per cent on
10000 capitalization -. In a,'SsnG ls. i was
Is per cent, in 1872 1t was IS per cent,
in 1S1oo 1t was Il PER cent, in 1874 II was
. per cent, in 1875 it was 20 Der cent.
in 1876 II was s. per cent, in 1S.7 it was
cent.
In 1879 the dividend was Is per
cent: in 1880 it was Is per cent. The
treasurer of the company stated in a
letter to Senator SpOoner-I am still
reading from Senator Spooner's re-
DALI February 25. 1881, that "for the
thirty-one and a half years the ave-
rage Of cash and stock dividends
has been 1S $40 per cent" That is
practically II per cent for thirty -ons
years. 1 want to quote a little fur
Senator Snnnnar's ronnYf
from which 1 have been reading thus
far. He shows that these dividends
were made as shown by the figures of
the gas companies themselves. but
the Investigation Of his COMMITTEES
showed him that the figures were not
always accurate. They had some
times been at a loss to know just
bow to cover up the immense profits
that they were making. and he calls
attention in this report to one item
as an Illustration Of the way in which
some Of the expenses were increased
On the books above what was legiti-
mately proper. He says:
THE committee Is not satisfied with
the testimony as to the cost of coal. 1t
is for the interest Of the company to
carry its accounts so as to swell before
the public eye the cost of the COM !
modify which they sell. The committee
feels justified in making this suggestion
by the fact that in its investigation it
Is cents. or thereabouts. per ton OF coal
for handling after delivery to the gas
company Is figured as an element in the |
cost of COAL and that the same item |
Is also included in the wages account"
He gives this only as an illustration. |
and says in substance in his report |
that II they had had the ability to sum- |
mon witnesses and to 20 into thorough |
they would undoubtedly |
have been able to find great many |
,ther instances where this kind Of book
keeping had taken place. But. notwith-
standing this, the enormous dividends / |
have read you were made.