El Paso herald. (El Paso, Tex.) 1901-1931, 1918-09-26
WATERED STOCK
IS 100000
This Is Women's Claim
Against Gas Company;
Its Letter Only Answer.
OContinued from page IL

year TO pay the dividends. but they
have paid on Watered stock for sew
cral years past They claim that
$4,000 is the depreciation charge for
the year and want credit for that II
the amount were put into the plant.
We might favor the suggestion, but 1t
is paid out in form OF dividends"
The mayor then stated that the
council would be glad 10 hear from
the women. in order TO get their ar
guments in the record Mrs. Robinson
took a vote in her committee and the
majority asked that the argument be
given
5Irs. Robinson Gives Figures.
She presented a mass OF figures,
some OF them from the audit Of the
gas company's books She showed
that in 1913 the company bought its
plant from Noles Pittman for S1,798.-
o00. represented as follows; $500. 900
assumption Of mortgage and the re-
mainoer IN stock that the actual
value Of the plant at that time was
s524.0o0. so that the purchase price
represented three times the worth.
Mrs. Robinson then showed how the
stock Of the company is held by east
ern holding companies and how there
is S1O0O.OO0 Of water. There is
-vatered stock to the value OF
s1.o00.000 and the company wants the
consumers 10 pay dividends on that
water" she said IN ordinary times,
the profits were so large that they
were able 10 pay dividends on that
water" she said. IF they were not
paying on watered stock, the rate
could have been lower.
Says Company Overestimates.
Then again the gas company over
estimated the growth OF FL Paso and
installed a water gas machine that
was used only two weeks. It also
built a 100000 storage tank in East
II Paso that was never used for the
purpose Il was intended for. The
housewives OF FL Paso should not be
made to pay dividends on poor invest
ments by the company.
IN the past four years. the coTp-
pany has placed mortgage after mort
gage on its property until IL is now
mortgaged for Sl-4I3,OO0. upon which
il pays 5 percent Five hundred
thousand dollars appears to have been
for paying off the old mortgage. This
does not look like good business man
agement-
Want Consumers to Pay Interest.
The company now has 10 pay 3
percent on S1.473,000 mortgages. 7
percent on 100000 preferred stock I
and is struggling TO pay dividends on I
common stock Of $1,000 600. That is a I
big job In ordinary times the profits /
doing It, Now that the cost of pro +
ducing gas has increased, they are
finding their profits are reduced and !
are calling on the consumers TO help
them out Of their bad situation
Consumers deposits are SIS, 404, 4
which the company has the use Of and /
on which il pays no interest. +
The people should not have saddled .
on them the burden Of the company's /
mismana cement If the company had 3
not 10 pay dividends on the 100000 :
common stock. il could have furnished .
gas at a much lower rate and still
made a good profit"
Claims Wages Too Low.
Mrs. Robinson then took up the
matter Of wages and salaries paid by
the company. She gave the following
figures, not as information direct
from the company. but in every prob
ability all correct; General superin-
tendent. $500 a month; one engineer.