in the cople: parate on of 7 was DESCRIPTIVE LIST OF EXHIBITS INTRODUCED AT HEARING, AUGUST 22, AND SEPTEMBER 6, 1934 twc ་ perat ment Commission's exhibit 6079.-Report by John H. Crabtree (Federal Trade Commission) on the examination of the accounts and records of the Peoples Light & Power Corporation (formerly controlled by Tri-Utilities Corporation) with accompanying exhibits and appendices (p. 83), covering: rtant Froup nter ports ering Surplus. hat arly Tew Live lic Comparative balance sheet as of December 31, 1926 to 1932, inclusive: Income statement. Corporate surplus analysis: Schedule A-comparative statement of general and administrative expense. Schedule B-interest schedule. Appendices: Certificate of incorporation. Agreements, offers, management fees. Report of president of Peoples Light & Power Corporation to its directors. Letter agreements, office memoranda. Petition of receivers to United States District Court for authority to sell securities. ss) Commission's exhibit 6080.-Report by Carl H. Depue (Federal Trade Commission) on examination of accounts and records of Dallas Power & Light Co., with accompanying exhibits and appendices (p. 191), covering: Comparative balance sheets, 1917-32, inclusive. Statement of property values, depreciation sustained, and maintenance and depreciation reserve. Capital assets, capital liabilities, amounts of dividends on common stock, 1917-31, inclusive. Property values and return thereon. Summary of disposition of electric revenues, 1931. Approximate reproduction cost of company's properties as of July 1, 1931. Electric energy sold and revenues therefrom. Gross revenues. Operating statistics. IX Commission's exhibit 6081.-Report by Walter Meleen (Federal Trade Comm sion) on examination of accounts and records of the Tennessee Public Serv Co., with accompanying exhibits (p. 219): Introductory. Capitalization and capital assets. Balance-sheet accounts. Income and surplus accounts. Invested capital, earnings, and rates of return. Exhibits: Tennessee Public Service Co. and Knoxville Power & Light C (combined) comparative balance sheet as of December 31, 1919 1933, inclusive, and as of October 31 and November 1, 1930. Comparative balance sheet of Knoxville Power & Light Co., Decemb 31, 1919 to 1929, inclusive, and October 31, 1930. Comparative balance sheet of Tennessee Public Service Co., Decemb 31, 1925. Tennessee Public Service Co. and Knoxville Power & Light C (combined) comparative income account and profit and loss su plus by years, 1922 to 1933, inclusive. Knoxville Power & Light Co. comparative income account and prof and loss surplus by years, 1922 to 1929, inclusive, and 10 month ending October 31, 1930. Tennessee Public Service Co. comparative income account and profi and loss surplus, August 1, 1925, to December 31, 1925, and by years, 1926 to 1933, inclusive. Map of territory served by Tennessee Public Service Co. Power contract between Carolina Power & Light Co. and Tennesse Summary of report. Exhibit no. 6082.-Letter dated July 24, 1934, from N. P. Zech, comptroller Middle West Utilities Co., referring to report on examination of accounts and records of Central Power & Light Co. and subsidiaries which deal with certain appreciation write-ups, and addressed to Francis Walker, chief economist, Federal Trade Commission (p. 266). Comm Serv UTILITY CORPORATIONS at C 919 t Ca ller. BEFORE THE FEDERAL TRADE COMMISSION IN THE MATTER OF INVESTIGATION OF PUBLIC-UTILITY CORPORATIONS ROOM 2030-C, FEDERAL TRADE COMMISSION, Met, pursuant to adjournment, at 9 o'clock, a. m. Appearances: Col. William T. Chantland, counsel; Thomas J. Tingley, associate counsel; J. Butler Walsh, associate counsel; Dr. by Francis Walker, chief economist; and Col. William H. England, asstant chief economist, on behalf of the Commission. Bernard F. Teadock, New York City; William J. Hagenah, Chicago, Ill.; and Martin V. Callagy, New York City. nts Leak the Examiner HUDSON. Proceed, gentlemen. Mr. TINGLEY. If Your Honor please, we propose to take up today report of Commission-Examiner John H. Crabtree, on accounts ief and records of Peoples Light & Power Corporation, a subholding mpany of Tri-Utilities Corporation, which was an Austrian holdng company. A copy of the report has been sent to company offiials, and they have stated orally that they have no corrections to suggest at the present time, but might subsequently make minor corrections as to dates, and so forth. I would suggest that if any correction is made which proves to be correct in the text of the report, that we be permitted to make that at a subsequent time rather than to delay the hearing. I will call Mr. John H. Crabtree. JOHN H. CRABTREE, recalled as a witness for the Commission, havng been previously duly sworn, testified as follows: Further direct examination by Mr. TINGLEY: Question. Mr. Crabtree, your qualifications are already a matter of record in these proceedings, are they not? Answer. Yes, sir. Question. At the instance of the Federal Trade Commission, did make an examination of the accounts and records of Peoples Light & Power Corporation? Answer. I did. Question. When was that examination made? Answer. It was begun the 2nd of January 1934, and completed just about a week ago. Question. I hand you herewith a volume entitled, "Report of the Examination of Accounts and Records of Peoples Light & Power 1 Corporation", and ask you if that is the original of the report which you made as the result of an examination made by you? Answer. It is. Mr. TINGLEY. Mr. Examiner, I ask that that be introduced in evidence and marked with the appropriate exhibit numbers. Examiner HUDSON. Without objection, the exhibit will be received as exhibit no. 6079. (The report referred to was received in evidence and was marked 66 Commission's Exhibit No. 6079 ", Witness Crabtree.) By Mr. TINGLEY: Question. That report is prefaced by a table of contents, is it not? Answer. Seven pages. Question. When was the Peoples Light & Power Corporation incorporated? Answer. It filed its charter on March 10, 1926. Question. Under the laws of what State? Answer. Delaware. Question. For how long a period did its charter run? Answer. It was a perpetual charter. Question. What were the corporate purposes of the company? Answer. It was incorporated in order that it might acquire, own, operate, and dispose of the business and properties of persons, partnerships, associations, and other corporation operating utilities. Question. When was the first meeting of the subscribers held? Answer. March 11, 1926. Question. Where? Answer. Wilmington, Del. Question. And who were the subscribers to the certificate of incorporation? Answer. T. L. Croteau, A. L. Miller, and Alfred Jervis. Question. When was the first meeting of the board of directors held? Answer. On March 22, 1926. Question. Where? Answer. In Minneapolis, Minn. Question. And who were elected to the various offices at that time? Answer. President, Wilbur B. Foshay; vice president, H. H. Henley; secretary, C. W. Salisbury; treasurer, H. E. McGinty; assistant secretary, H. E. McGinty; assistant treasurer, C. W. Salisbury; cashier, R. J. John; comptroller, F. W. Peters. Question. At the bottom of page 2 of your report, you have a list of various offices in the corporation, a list of names of those who held those positions on November 17, 1931, and a list of those who held those offices on December 31, 1932, have you not? Answer. Yes, sir. Question. Have you any comments to make on that? Answer. Those were the officers who held office at the date of the receivership and at the close of this examination. Question. And, at the top of page 3 of your report, you have the names of the directors who held that office on November 17, 1931, and those who held that office as of December 31, 1932, have you not? Answer. Yes, sir. Question. Beginning on June 1, 1926, and at various times during the year 1926, various written offers were submitted by the W. B. Foshay Co., proposing to acquire certain bonds, notes, and stocks of various companies, and offer them for sale to Peoples Light & Power Corporation, upon various terms and conditions, were there not? Answer. Yes, sir. Question. Those terms and conditions are discussed in the ensuing pages of this report, are they not? Answer. They are. Question. On page 4 of your report and also on page 5, you have a list of certain subsidiaries through which Peoples Light & Power Corporation served its territory, have you not? Answer. Yes, sir. Question. What did that territory cover? Answer. Well, the territory covered most of the States of the Union-certain parts of them. Question. On page 6 of your report there is a list of certain companies controlled by Peoples Light & Power Corporation, with a notation of the States served, population served, and consumers distributed as between electric, gas and water, and total consumers served, is there not? Answer. Yes, sir; there is. Question. Those are just the principal companies that were controlled by Peoples Light & Power Corporation, are they not? Answer. Yes, sir; and for the year 1930. Question. How many companies were controlled by the company in 1930, altogether? Answer. Well, this is supposed to be the principal companies. If there were any small companies they are not shown in this case. Question. In 1930, Peoples Light & Power Corporation, through its subsidiaries, supplied public utility service in territories having an aggregate population estimated at what? Answer. 696,000. Question. What percentage of the gross revenues was derived from electric properties? Answer. Over 52 percent. Question. And they were largely what type of properties? Answer. Hydroelectric systems. Question. What percentage was derived from gas properties! Answer. Over 29 percent. Question. And what percent from water properties? Answer. Over 13 percent. |