The daily times. [volume] (Wilson, N.C.) 1902-1936, 1921-03-23
PRESENT STATISTICS
COMPARING COST Of
GAS PRODUCTION
RATE HEARING CONTINUE
Discussion of Quotations on
Coal and Oil. Gas Oil is
Ten Per Cent. Cheaper Now
Than a Year Ago. Reduc-
ton in the Price of Coal
Noted.

Raleigh, March 23.-Defnite ad-
missions of a material reduction in
the cost of coal and oil, proposed re-
duction in the wages of certain en-
ployes, and extension of service in
Raleigh and Durham, boosting rev.
enue and cutting down the level of
production costs were the outstand-
ing features of the testimony of P.
A. Tillery, general manager of the
Carolina Power and Light Company,
gas rate hearings which started yes
terday before the Corporation Com
mission.
Eleven towns, Raleigh, Durham,
lotte, New Bern, Goldsboro, Oxford,
Henderson, Elizabeth City, Washing
ton and Charlotte, are involved. AL
though the entire day was given over
to the hearing, when adjournment
came in the afternoon Mr.. Tillery
was still on cross-examination,h having
been under the fire of John Hinsdale,
Jr., city attorney of Raleigh; Sidney
C. Chambers, representing the city of
Durham, and Frank r. McNinch, of
Charlotte, selected as leading counsel
for the cities involved.
On direct examination by James
H. Pou, attorney, the power company
official presented carefully prepared
of
dities entering into the production of
gas in 1915 with the cost now, but
when he came to cross-examination,
attorneys insisted on comparisons be-
tween conditions existing in August,
1920, and conditions now Frequently
he was compelled to admit that he
did not have the information avail
able but would look it up.
According to his direct testimony,
coal that cost delivered $3.50 in
1920 costs $3.50 now, but on cross
examination he admitted that the
reason the Carolina Power and Light
Company pays such price for coal
now is that the company has con-
tract which will not expire until
April Ia. Then, he stated, in his
opinion, it would be cheaper.
Then came flourish of quotations,
and they continued to bob up dur
ing the rest of the hearing, ranging
from $3.50 to $500 at the mine.
But Mr.. illery was loath to discuss
quotations on coal and oil, but did
admit that he is buying gas oil ten
per cent cheaper now than a year
ago. He likewise stated that $1.00
reduction in the price of coal or in
freight rates entering into the cost
of one ton will effect saving of ten
cents on the thousand cubic feet of
gas.
The Carolina Power and Light
Company, according to Mr.. TiIlery,
during the past five years has made
returns on it's investment of At per
cent in 1915, 5.3 per cent in 1917,
$40 per cent in 1918, FL per cent
in 1919 and 1.2 in 1920. According
to his testimony, the power company
would have been compelled to make
$25O,0OO more than it did make in
he five years in order to provide for
.{fve per cent depreciation fund and
a eight per cent return.
On the Durham plant, $150,OOO
, mre revenue would have been ne
cesary to produce this margin.
Ie placed the book value of the
Raligh plant at $62O,3O9 and the
Duran plant at $173,3O6, and on
1urtIer cross-examination stated that
one and half per cent of the gross
Earnings of the Carolina Power and
Light Company are paid to the Elec-
stric Fond and Share Company, of
New York. He denied that this COM
pany il the parent of the Carolina
Power and Light Company, and
denied that it owns majority stock.
II his opinion, the majority stock in
tie company is owned by no one in
dFfdual. The one and half per