Evening star., 1932-10-27
PADDED VALUATION
LAID TO COLUMBIA
Examiner Says Utilities Com.
pany Added to Figures in
Exchange of Stocks.
BY the Associated Press.


Testimony that the Columbia Gas &
Electric Corporation Of New York had
acquired stocks of several Ohio public
utility companies at certain stated
values through exchange of its own
stock, which it carried on its books at
higher investment value, was given
the Federal Trade Commission today by
Examiner R. j. Ryder.
Under questioning by Robert E. Hea1y
commission counsel, the examiner said
the corporation had issued 1854, ,724
shares Of its stock with an investment
value Of sl06,235,412 for an equal num-
Der of shares of companies 1t had taken
over that had a stated value OF S84 .234, =
200. A total surplus, however. Of S22.-
O0l ,213, Ryder explained, was carried on
the corporations books as result.
Surplus of $21,979,663.
The CORPORATION was said by Ryder to
have acquired / 1895 shares OF COM
mon stock of the Columbia Gas &
Electric Co.. at stated value OF
S49952, ,566, and to have issued an equal
number Of its own shares Of stock Tor
exchange which it had given an in
vestment value Of S71,932, ,229. The
surplus was listed at s21 ,979,663
In 1880. Ryder testified, the Columbia
Gas g. Electric Corporation had de-
clared rs per cent dividend, part OF
which was in stock. The capitalization
of the corporation on December 81, 1880,
was 1887 1886, 366. 1t had grown from
$3.50, ,929, ,692 on December 81, 1925. he
said, adding:
THE total increase in capitalization
of $l27,0O6,674 has been acquired by
issuance of S53.369, 100 of bonds,
s7,550,2S4 of preferred stock and
$66, ,O86, 500 by issuance of common
stock and increase in surplus"
The Columbia Gas & Electric Cor
poration has forwarded to the Com
mission a statement in explanation OF
the so-called $36,000.000 "write-up" in
the stock of one of its predecessors
in 1907.
Answering the testimony of Ryder
that the $36,O00,000 item had been
preserved" in the cost of the Columbis
Gas & Electric Corporation, the cor
poration's statement AYERS:
Position of Corporation.
"The position of the corporation with
respect to this so-called write-up of $685.
| 00O, 1000, in the transaction with Sinner
| son, and Intermediates in 1906,
| Is tIldL tlllS III dllSdSI1OAi wac SoAA Nv
through the year 1907, which was lone
before the present management of Co
lumbia Gas g. Electric Corporation hao
come into the property.
Subsequent development of the as
sets acquired in the said transaction
with Simerson has fully justified the
aggregate value then placed on them
as reflected by the securities Of Colum-
bia Gas & Electric Co. issued in pay
| ment of them.
Both Stocks Carried.
"The purchase carried through under
the Simerton offer was not only the
stock of the Union Gas & Electric Co.,
! but also of the stock of the Cleveland
companies the Cleveland Gas
Light & Coke Co. and the Peoples Gas
Light Co. The stocks Of these Cleve-.
land companies was later exchang"
into 81 per cent Of the stock OF the
United FueLCo. which have proved ex-
tremely valuable; is, in fact, the most
valuable natural gas field in the Appa-
lachian field and forms the heart OF the
Columbia system.
"If the total amount of Columbia Sc
curities issued under the SimeIson offer
is considered in relation to the aggre-
gate of the Union Gas & Electric stock
and of the United Fuel Gas Co. stock
received in exchange. the issue has been
justified by the value received.