United States Congressional Serial Set Volume 3723 (Paperback)

This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1898 edition. Excerpt: ...I have already submitted. That investigation, which was carried into the books of the Metropolitan Telegraph and Telephone Company, and not based upon the statements of counsel, demonstrated that the net profits for these six years on the cash capital invested by that company amounted to 474 per cent, and that its net profits in 1885 exceeded the capital 116 per cent; that in 1886 they exceeded it 147 per cent, and in 1887 over 145 per cent. Mr. Pitney. You mean the annual profits were more than twice as much as the capital? Mr. Hemphill. Yes, sir; this was while the telephone rates ranged from $60 to $80, and subsequently to $180 a year. At this time they had about 5,000 subscribers. Mr. Pitney. Five thousand Mr. Hemphill. Yes. Mr. Pitney. You must be wrong about that. Mr. Hemphill. That is the report of the committee. Mr. Pitney. They have 24,000 now. Mr. Hemphill. Yes; but at that time that was the amount, so stated here in this report. Now, in the London company The CHAIRMAN. London, England Mr. Hemphill. Yes; they acknowledged that receiving from $80 to $100 they made a net profit of 55 per cent, and they pay 10 per cent of that to the Government for the privilege of doing business--10 per cent of their whole profit, as 1 understand it--anyhow, 10 per cent to the Government and 10 per cent to their stockholders, and are laying up a large surplus. Mr. Pitney. They are paying their stockholders 10 per cent on the cost of maintenance, or on the capital invested? Mr. Hemphill. On the actual money put into it, yes sir; that is my understanding. Mr. Wilson. On the original investment? Mr. Hemphill. Yes, sir; as"I understand it, on the total amount of money invested. Mr. Wilson. On the original investment? Mr. Hemphill. Yes, sir. Mr....