Answer. Yes. Question. Totaling $828.30? Mr. HEALY. I offer that for the record. Examiner BENNETT. It may be received as Exhibit 4734. You have 4729 eliminated. What has become of 4730? Mr. HEALY. I didn't offer 4728, 4729, or 4730. I offered 4731, 4732, 4733, and 4734. (The paper referred to was thereupon received in evidence and marked as Commission's Exhibit No. 4734.") By Mr. HEALY: Question. Who was Mr. Beasley's immediate superior in the Securities Co., and from whom did he take his instructions? Answer. I don't know that there was a set-up of the organization in that way. Anyone in the organization that had matters to be handled in Washington took it up directly with Mr. Beasley, just like they would any counsel that is situated away from the home office. In other words, I have called on Mr. Beasley, and I have never considered Mr. Beasley reporting to me, without consulting anyone, but I suppose he was accountable to the executive officers of the company. Question. Who was in charge of the bid for the Muscle Shoals property so far as your company was concerned, the Southeastern Power & Light? Answer. I don't know that anyone was put in immediate charge, but Mr. Martin and Mr. Beasley were handling it. Question. It is my understanding, Mr. Bingham, that the $4,740 expenses paid Mr. Beasley and shown on Exhibit 4728, which was not offered, but concerning which you testified, were payments in addition to those shown on Exhibit 4733, which was offered. Do you understand it the same way? Answer. I don't understand the question. (The question was read.) Answer. I will have to check that. Question. Very well. Answer. Yes; I understand they are. Mr. HEALY. I now offer for the record pamphlet marked "Exhibit 4735," made by the Southeastern Power & Light Co., in answer to Schedule E of the commission's questionnaire. I will call attention only to one or two things in it. The Southeastern Power & Light reports, under oath, that there were no newspaper or publishing companies in which the company held stocks or bonds, or to which loans or advances were made from January 1, 1925, to December 31, 1929, which is the only period we are inquiring about. The contributions to national and local associations are shown. They report that during the period mentioned there were no contributions to schools, colleges, universities, or institutions of learning, and that during the same period there were no payments to newspapermen, college professors, scientists, or writers. I offer Exhibit 4736, which is the response of the Southeastern Securities Co. to Schedule E of the commission's questionnaire. The total spent for advertising and motion pictures is shown year by year. This corporation likewise reports that there were no which the company held advances were made from They show a contribution newspaper or publishing companies in stocks and bonds, or to which loans or January 1, 1925, to December 31, 1929. of $8,000 in 1927 to the Joint Committee of National Utility Associations, and $1,000 the same year to local associations, and $100 to local associations in 1926, and no other contributions during that period. No contributions to schools, college, universities, or institutions of learning, none to newspapermen, college professors, scientists, or writers. Examiner BENNETT. Let the documents be received as Commission's Exhibits Nos. 4735 and 4736. (The documents referred to were thereupon received in evidence and marked as "Commission's Exhibits Nos. 4735 and 4736.") Mr. HEALY. Some question arose during Colonel England's examination as to the reason why the Columbus Power & Electric Co. and the South Carolina Power Co. do not meter the electric energy crossing State lines. The reason that they do not is because it is intracompany business. In other words, the current crossing the State line is transmitted by the corporation which generates it to itself. If the presiding examiner please, I wish to repeat at this time part of a statement that I made last February at the opening of the hear ings relative to the American Gas & Electric Co. It is apparent that in discussing the growth of capital assets and liabilities this commission has to do with such facts as they are generally understood in business dealings, namely, growth of such assets and liabilities as they appear on the books of account, together with any information regarding the accuracy and propriety of such records as may be obtainable. The Senate resolution does not call upon the commission, however, to value the properties of these operating companies, nor can it attempt in these hearings to go into this question on its merits-that is, get into any debate on the amount of valuation. Some of the facts brought out on these hearings regarding the growth of capital assets and liabilities may have a bearing unquestionably on fair value, but they are not the only factors to be considered. They will be informative chiefly regarding the question of investment and the extent of increase in book values over and above such cost. If the Senate had intended any such inquiry-that is, as to values and appraisals, be made it would have been a simple matter to have expressed its wishes. The proceedings of the Senate with reference to the inquiry also make it plain that a general valuation of the property of these utilities is not contemplated. It is impossible for the commission to make findings as to the reasonableness of rates of return and fair value of the property. That is everything we have to offer, and I move for an adjournment until the 2d of December at 10 o'clock in the morning, at which time we expect to be ready with reports and testimony regarding the Georgia Power Co. Examiner BENNET. The proceeding is adjourned then until 10 o'clock a. m., December 2, 1930, at this place. (Whereupon, further proceedings in the above-entitled hearing were adjourned to 10 o'clock a. m., Tuesday, December 2, 1930.) DESCRIPTIVE LIST OF EXHIBITS INTRODUCED AT HEARING NOVEMBER 12, 13, 14, AND 15, 1930 N. B. The page references for these exhibits are given on page III. Commission Exhibit No. 4715.-Report on Southeastern Power & Light Co., interstate transmission of electric energy. Prepared by W. H. England. (F. T. C.) (P. 7.) Commission Exhibit No. 4716.-Map, interstate crossings of electric transmission lines of Georgia Power Co., Columbus Electric & Power Co., and South Carolina Power Co., in 1929. (Prepared by F. T. C. from diagrams furnished by Southeastern Power & Light Co. in connection with S. R. 151.) (P. 14.) Commission Exhibit No. 4717.-Map, Southeastern Power & Light Co. System, showing sections served by various operating companies as of March, 1929. (Photostat copy of map furnished by Southeastern Power & Light Co.) (P. 14.) Commission Exhibit No. 4718.-Map, the Commonwealth & Southern Corporation properties. (Photostat copy of map furnished by company.) (P. 15.) Commission Exhibit No. 4719.-Charts, tables, etc., of intercorporate relations between companies in the Southeastern Power & Light group, consisting of list of officers and directors of Southeastern Power & Light group, March 1, 1928, list of stockholders, list of supervision fees of Southeastern Power & Light Co. (P. 15.) Commission Exhibit No. 4720.-Table, Southeastern Power & Light Co., showing companies owned directly or indirectly that have been dissovled, disposition of assets, date of disposition, and date corporation was dissolved. (P. 27.) Commission Exhibit No. 4721.-Report on Southeastern Power & Light Co., control, management, and servicing relations. Prepared by Lewis G. Prichard (F. T. C.) (P. 33.) Commission Exhibit No. 4722.-Report on Southeastern Power & Light Co. Prepared by R. J. Ryder (F. T. C.) (P. 47.) Commission Exhibit No. 4723.-Exhibits to report (4722) on Southeastern Power & Light Co., consisting of balance sheets Southeastern Power & Light Co., September 30, 1924, to February 14, 1930, inclusive; Southeastern Securities Co., September 30, 1924, to December 31, 1929, inclusive; Alabama Power Co., December 31, 1929; Mississippi Power Co., South Carolina Power Co., January 1, 1927, to December 31, 1929; Dixie Construction Co. Summary of investments, Southeastern Power & Light Co. in the following companies: Alabama Power Co.; Georgia Power Co.; Mississippi Power Co.; South Carolina Power Co.; Southeastern Fuel Co.; Consumers Ice Co.; Gulf Power Co.; Appalachian Development Co.; Dixie Construction Co.; Empire Construction Co.; Southeastern Engineering Co.; Southeastern Production Co.; Georgia Light, Power & Railways (Inc.); Columbus Electric & Power Co.; Cherokee Land Co.; Sheffield Development Co.; Southeastern Realty Co. Summary of investments Southeastern Securities Co. in the following companies Alabama Power Co.; Georgia Power Co.; Gulf Power Co.; Mississippi Power Co.; South Carolina Power Co.; Southeastern Power & Light Co.; The Commonwealth & Southern Corporation; Mississippi Utilities Co. Statements: Cost to Southeastern Power & Light Co. of Gulf Electric Co. securities converted into Alabama Power Co. securities; cost allocated to electric plant and street railway of the Sheffield Co. sold to Alabama Power Co.; cost of Houston Power Co. securities exchanged for Alabama Power Co. securities; cost to Southeastern Power & Light Co. and/or Southeastern Securities Co. of Georgia Power Co. securities received under agreement dated October 21, 1926; cost to Southeastern Securities Co. of properties conveyed to Georgia Power Co.: cost to Southeastern Power & Light Co. of securities received from Mississippi Power Co. under agreement of July 1, 1929; cost to Southeastern Power & Light Co. and/or Southeastern Securities Co. of South Carolina Power Co. securities received at time of merger November, 1926: 155 |