El Paso herald. (El Paso, Tex.) 1901-1931, 1918-04-27
WANTS. GAS CD.
FINANCE PROBE
Judge Sweeney Suggests
to Council That Company
Make q Statement.

days ago against the proposed extra
charge by the FL Paso Gas company
Of 80 cents rent per meter in use by
consumers. Friday afternoon sent the
following letter TO mayor Charles
Davis and the city council;
TO the Mayor and Board Of Alder
men, FL Paso, Texas:
Addressing you in reference to the
application Of the gas company for
the adoption Of an ordinance, or an
amendment to its franchise. providing
for an increased rate on its commod-
ity to the consumer, ] desire to sug-
gest that after deliberation I have
reached the conclusion that the city
council should Immediately deny the
relief sought, by reason OF the fact
I that the gas company has not pre-
scented a statement OF the condition Of
its finances and investment, upon
which the council could predicate any
action it deems proper in the prem
ises, and 1 venture to suggest that
the gas company should be advised
| by the council that il must first pre-
sent the facts and figures upon which
it relies for such an increased rate;
then the city or citizens could secure
the services Of an examiner TO veri-
fy the correctness Of the gas COM
pany's contention
For the city now to make an ex-
animation and audit merely shifts the
burden from the gas company to the
city and requires the city TO COM
pile those facts that the gas company
should be compelled TO present. In
the event your views do not harmon
lie with mine, and you decide to- pro-
coed as indicated at the council on
the 18th, inst, I want to suggest that
in the investigation contemplated the
city should have an experienced eX-
aminer to effect an exhaustive exam
nation Otherwise, as far as the gas
company is concerned. 1t would be a
joke, and for the consumers it would
be a tragedy This examination, to
properly protect the rights OF tha
consumers, must contain the follow
ing Information:
Asks Exhaustive Statement.
First, comparative general ball
ance sheet showing the following in
formation Investments. under this
head. should be machinery and equip
ment Of all kinds, miscellaneous
physical property; Investment in az
1liated companies; If any under this
head, stocks, bonds and notes and also
this head stocks, bonds, notes and
advances current assets, under this
head show cash on hand, demand
loans and deposits, time drafts and
deposits, special deposits, loans and
bills receivable. material and supplies.
deferred assets: under this head in
surance and other funds (this would
include funds actually set aside in
the treasury TO prov ide for insurance,
for employees pensions. and the like),
unadjusted debts; rents and insur-
ance; premiums paid in advance: dis
count on capital stock; discount on
funded debt; property chargeable to
operating expenses Liabilities capt.
tai stock; funded debt unmatured;
nOn-negotiable debt TO affiliated COM
panies, deposits by subscribers: open
accounts; note; audited accounts and
wages payable, interest matured and
unpaid; dividends matured and IN
paid; funded debt matured and IN
paid. interest accrued unpaid; rents
accrued; other current Liabilities; 9TH
er deferred Liabilities; premium on
funded debt; insurance and casualty
reserves; operating reserves; accrued
depreciation on machinery and ac-
crued depreciation on miscellaneous
property and other unadjust-
ed credits; additions to property
through income and surplus; funded
debt retired through income and sur
plus; surplus not specifically invest
ed; profit and loss balance; total
corporate surplus
To Conform With Books.
The above segregation should be
followed, insofar as possible, to con- /
form with the books Of the FL Paso
Gas company, showing the increases [
and decreases II would be preferred /
to have two balance sheets represent /
ing the calendar years OF 1916 and /
1917. However, If the gas company
operates on a fiscal year, show the I
fiscal year including the last two 4
fiscal years The property accounts ]
should be scrutiniZed very closely and 1
an analysis made Of them. and in the /
matter or requirements only the diff ]
ference between the cost Of the orig
-nal line and the new line should be ]
TO property account In the I
matter OF capitalization 1t is desired I
that the amount Of stock sold and 4
the amount Of stock on hand in the 1
treasury be shown, also the average /
price obtained for the stock sold. Any /
stock which was disposed Of for other I
than cash should be shown separately I
and what the equivalent for the stock Z
was. Show whether franchise is car
-ied as an asset and for how much /
Give complete summary Of Operat- !
ing expenses for the years 1916 and /
1917 separating the labor into four {
classeS- executives, amount Of salary I
received, mechanics and pipe line fit I
-ers, office help and day labOrers. III
the gas company carries more ex- [
laustive classification Of its en- /
llOyes il viii be agreeable to accept J
heir classification, with the eXcep- ]
lion that IL is particularly desirable ]
10 know what the administration ex-
Deuse is and also to know the differ /
snce between the llbOr wage for the /
year 1917 as compared with the year /
1916.
Asks Kind OF Gas shown.
state whether the gas as furnished ]
By the gas company is strictly coal /
gas, or what is commonly known as /
water gas. or a rElXture Of both, and /
4 a mixture state the percentage of I
aach- Give the average price per ton I
II coal in the year 1917, 1916 and /
1918, also the price Of coke and oil. 4
state what proportion Of coal, coke I
and oil is used for making gas and I
what amount Of gas in cubic feet is /
produced per ton Of said mixture. As
certain the net proceeds for the years I
.916, 1917 and that portion of 1918 to
late Of audit; ascertain dividends
laid, if any, in 1875 and II; If any
lOnded Indebtedness, state amount
when maturing, rate Of interest and ]
whom held by examine stockholders
-ecOrd and ascertain who are the
argest stockholders and whether
my Of the bonded Indebtedness is in
heir hands. Examine closely the de-
losits made By subscribers and show
low much interest has been paid said
iepositors- 1t would be well to as
certain the average amount held on
leposit by the gas company for the
last ten years, and alsO the average
mount Of interest paid on these de-
'osits for fhe The same period Of
ears.
Wants Names OF Principals.
"Give names and titles Of all Off
ers Of the board Of directors in con-
rol Of the gas company at the pres
mt time, and state whether the stock
S controlled by local people, or by
oreign stockholders Give the names