No. 4708.-Appendices to report (Exhibit No. 4706) on Carolina Power & Light Co., prepared by Carl H. DePue, consisting of-Continued.

(Old) Carolina Power & Light Co.-General information reported to North Carolina Corporation Commission. Balance sheets, 1924-25. Analysis of merger and consolidation account. Financial statements. Pigeon River Power Co.-General information reported to North Carolina Corporation Commission. Financial statements.

North Carolina Electrical Power Co.-General information reported to North Carolina Corporation Commission. Financial statements. (New) Carolina Power & Light Co.-General information reported to North Carolina Corporation Commission. Financial statements.

Rate schedules obtained from North Carolina Corporation Commission. Address by S. Z. Mitchell on subject of "Superpower," containing reference to benefits to North Carolina industries and inhabitants from interchanges of power during 1921 drought. (Tr. 11595.)

CAROLINA POWER & LIGHT CO.

BEFORE THE FEDERAL TRADE COMMISSION

IN THE MATTER OF INVESTIGATION OF PUBLIC UTILITY CORPORATIONS

HEARING ROOM, INTERIOR DEPARTMENT BUILDING,

Washington, D. C., September 29, 1930. Hearing held pursuant to Federal Trade Commission resolution of February 17, 1928.

Before Hon. Edgar A. McCulloch, commissioner.

Appearances: Hon. Robert E. Healy, chief counsel; Col. William T. Chantland, associate counsel; Mr. J. Butler Walsh, attorney; on behalf of the Federal Trade Commission. Bernard F. Weadock, Esq., W. J. Hagenah, Esq., on behalf of the Joint Commission on National Utility Associations and National Electric Light Associations. James H. Pou, Esq., Raleigh, N. C.; W. H. Weatherspoon, Esq., Raleigh, N. C.; J. F. MacLane, Esq., New York City; on behalf of the Carolina Power & Light Co.

Commissioner MCCULLOCH. Let us come to order, gentlemen. Proceed, Mr. Chief Counsel, whenever you are ready.

ROBERT J. RYDER was called as a witness, and, after being first duly sworn, was examined and testified as follows:

Direct examination by Mr. HEALY:

Question. Will you give us your full name, please?

Answer. Robert J. Ryder.

Question. You are employed by the Federal Trade Commission? Answer. Yes, sir.

Question. Attached to what division?

Answer. Economic.

Question. How long have you been employed there?

Answer. Since the latter part of 1929.

Question. What is your profession?

Answer. Accountant.

Question. Are you a certified public accountant?

Answer. No, sir.

Question. What is your training and experience?

Answer. Fifteen years with the railroads and utility companies as accountant and auditor and with the Interstate Commerce Commission as examiner.

Question. Have you spent some time at the office of the Carolina Power & Light Co.?

Answer. Yes, sir.

Question. In connection with Senate Resolution 83?

Answer. Yes, sir.

1

Question. When and where was the Carolina Power & Light Co. incorporated?

Answer. It was incorporated under the laws of the State of North Carolina on April 6, 1926.

Question. What was the purpose of its incorporation?

Answer. It was incorporated for the purpose of merging into one corporation the Carolina Power & Light Co., the Asheville Power & Light Co., the Carolina Power Co., the Pigeon River Power Co., and the Yadkin River Power Co.

Question. What was the capitalization of the Carolina Power & Light Co. at December 31, 1929?

Answer. There were outstanding at that date 2,500,000 shares of common stock, no par; 112,232 shares of $7 preferred, and 81,553 shares of $6 preferred.

Question. Can you

tell who were the holders of the common stock? Answer. Yes; with the exception of 14 qualifying directors' shares, all of the no par common stock was held by the National Power & Light Co.

Question. The holdings of the Electric Bond & Share Co. in the Carolina Power & Light Co. have already appeared in our hearings relative to the National Power & Light. State who were the directors of the Carolina Power & Light Co. during the years 1926 to 1927. Answer. Sidney Z. Mitchell, C. E. Groesbeck, H. C. Abell, Frank Silliman, jr., William Darbee, C. N. Mason, Philip Stockton, Charles M. Clark, W. A. Tucker, B. S. Jerman, P. A. Tillery, C. S. Walters, F. B. Odlum, E. P. Summerson, E. B. Tracy, and George H. Howard. Question. Have you prepared a report dealing with general statistics on interstate powers of the Carolina Power & Light Co.? Answer. Yes, sir.

Mr. HEALY. Mr. Ryder's report, which is marked "4704,” is now offered for the record.

Commissioner MCCULLOCH. Let it be introduced into the record. (The document referred to was thereupon received in evidence and marked, "Commission's Exhibit 4704.")"

By Mr. HEALY:

Question. Where did these directors reside?

Answer. Three were residents of Raleigh, N. C.; one in Boston, Mass.; and 10 were residents of New York.

Question. Were any of the above directors that you have just named affiliated with any holding companies or their subsidiaries? Answer. Yes; seven of the above directors were affiliated with the Electric Bond & Share Co., and two with the National Power & Light Co.

Question. The Boston director was Philip Stockton? Is not that true?

Answer. Yes, sir.

Question. I think that Mr. Stockton has some other affiliations which have already appeared in the record. Where does the Carolina Power & Light Co. operate?

Answer. It operates in the States of North and South Carolina. Question. Of the energy generated by the company during 1929, can you state what amount was generated in each of the above States?

Answer. Of the total 418,548,250 kilowatt-hours generated in 1929, 418,134,540 kilowatt-hours, or 99.9 per cent, was generated in the State of North Carolina, and 413,710 kilowatt-hours, or one-tenth of 1 per cent, was generated in South Carolina.

Question. What is the source of the information that you are. giving us and other information that you are about to give us? Answer. It was furnished by the company in a letter to the Federal Trade Commission.

Question. In addition to the above generated energy, did the Carolina Power & Light Co. purchase any electrical energy during 1929?

Answer. Yes. During 1929 it purchased energy from other companies, in four States, as follows:

Companies located in North Carolina_

Companies located in South Carolina.
Companies located in Virginia....

Companies located in Tennessee_

Total

Kilowatt-hours

7,809, 900 61, 532, 850 6. 434, 564 15,862, 000

91, 639, 314

Question. Does the Carolina Power & Light Co. engage in interstate transportation of power?

Answer. Yes, sir; it does.

Question. How much energy was interstate business?
Answer. Do you mean the intercompany energy?

Question. Including that..

Answer. There are no metering arrangements on the companies' lines between the States of North and South Carolina, but in a letter to the chief economist of the Federal Trade Commission, J. W. Strange, vice president of the Carolina Power & Light Co., estimated that the total interstate movement of electrical energy in 1929 between the States of North and South Carolina was approximately 52.776,866 kilowatt-hours.

Question. Does the Carolina Power & Light Co. purchase or sell electric energy to companies in States other than North and South Carolina?

Answer. Yes. It purchases and sell power to the Appalachian Electric Power Co. in Virginia, and Tennessee Public Service Co.

in Tennessee.

Question. What were the purchases and sales to these companies during 1929?

Answer. It purchased 6,434,564 kilowatt-hours and sold 32,048,801 kilowatt-hours to the Virginia company and purchased 15,862,000 kilowatt-hours and sold 563,700 kilowatt-hours to the Tennessee company during 1929.

Question. You have just given us the figure of the electric energy transported in interstate movement. What per cent is the total to the energy generated and purchased?

Answer. The total quantity transported across State lines in 1929 was 21 per cent of the total generated and purchased energy and 27 per cent of the quantity sold.

Question. Have you here a map which is an enlarged duplicate of Exhibit 4672?

Answer. Yes, sir.