The New York herald., 1920-01-27
CONSOLIDATED GAS
SHOWS BIG LOSS
Annual Report Indicates That
Earnings During the Year
Were Impaired s1,S53,759.
INCREASED PRICES BLAMED
Early and Favorable Decision Ex-
pected in the 80 Cent Rate
Proceedings.

Surplus applicable TO dividends and in
for the year ended December 81, 1919,
amounted to s7,19S,s according to the
report submitted at the annual meeting of
stockholders yesterday That indicates a
loss from the company's gas business for
the year of more than s., 1853, 7q
Dividends were paid during the year on
the capital stock at the rate Of seven per
cent per annum. amounting to s7.021 1856.
Interest which accrued on funded and
other debt, chargeable against earnings,
amounted to $1,4s3, ,43s
The excess over income. OF interest and
dividends paid, resulted in charges against
the profit and loss account Of the company
amounting to s., ,909, $50
Rentals from the use by other companies
Of properties not wholly devoted to the
gas business yielded s25O,751. Dividends
and interest applicable to the year re-
ceived on stocks, bonds and other obliga-
tons and upon advances made to affiliated
gas and electric companies operating in
tho boroughs OF Manhattan, Queens and
the Bronx and in the county OF West
chester totalled s7.19S,ssi.
In his remarks to the stockholders Mr..
Cortclyou. president of the company.
said
1t was predicted 'in our report last year
that, notwithstanding the termination of
the war, the earnings of the Consolidated
Gas Company from its gas business would
be still further impaired during the year
1919 than they were during 1918 by the high
cost of labor and materials and other ele-
ments OF cost. The results were worse
than were anticipated. due not only to the
iact that Increases in the cost of ma
terials ard labor which occurred progress
sively during the year 1915 and which
affected only part of that year affected
the entire years operations in 1919 but to
tho fact that tho prices of materials.
which during the first few months of the
year 1913 took downward trend, in
creased as the year advanced until at the
close of the year the prices of many ma
terials, including gas oil, were higher than
at any time during the war. Likewise de-
mands on the part of labor for higher rates
of pay did not terminate with the ending
Of the war, but continued during the year
1919 and are continuing.
The total increase during 1919 In the
combined operating expenses of the gas
and electric companies after allowing for
a decrease in the taxes of s7Si .2O7, amount
ed to S6,23i 400. of which So. .42J was due
to the greater quantity of gas and cleo
tricity sold.
THE proceedings to review the validity
of the eighty-cent rate referred TO In our
last report are still pending, notwithstand-
ing the fact that the camplaint was filed
in the Federal Court early in January,
1919. Hearings before the Master. appoint
cd by the Court to take evidence and find
the facts. could not under the directions
of the Court that time must be allowed
the defendant public authorities for pre-
paration, be begun until July To- 1919
THE presentation of the company's evil
dence was concluded on December 81, 1919
The defendants. the Attorney General, the
District Attorney and the Public Service
Commission are now presenting their evil
dence. 1t is expected that the case will be
concluded at an early date and the COM
pany believes that the evidence submitted
in the case justifies a favorable decision
The following is condensed statement
OF assets and liabilities of the company
on December 81, 1919
Assets-Ffxed assets, including land.
plant and equipment. $3.50 2s3.51; bonds
and stocks of and advances to affiliated
companies and other investments. $115 2s3,-
SS5.6S; bonds and mortgages. S4lS, 900; cash.
50, 142, as7 "a; accounts receivable. s.. .42s.-
s17.S5; material and supplies, s1,2S4, ,0i5. IS
total, sl7s 49,. .0l0.O6
Liabilities-Capital stock, 500. 900 900; con-
vertible oebentLres, s2i,27S 772.50; accounts
and bills payable and accrued charges. So,-
2o.09o.GS: stock premiums. slS. S7s. %: re-
newal and reserve funds, 81, ,S5l 1921: prof
1t and loss, Sl5,&4 l52.3S; total S1G. iS5, ,0lo0G