# Appendix — Panhandle E. Pipe Line Co. v. Fed Power Comm. > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386404_0134%3A03 ## Record - **Collection:** Supreme Court brief - **Document type:** Appendix - **Published:** January 1, 1944 - **Citation:** 324 U.S. 635 ## Text - Vol. 1” ~ TRANSCRIPT OF RECORD N° qPages 1025 to 1520). - See cee tone me Supremi Court “ the United States : _ OCTOBER TERM, 1944 ie ere ee "No. 296 - 3 ¢ ki O PANHANDLE’ EASTERN? PIRE) LINK COMPANY, | | [LLINOIS, NATURAL GAS COMPANY AND MICHL- GAN GAS TRANSMISSION CORPORATION, PETE TIONERS, at oe - US. , ae Tay FEDERAL POWER COMMISSION, CITY: OF" DE: - “TROIT, COUNTY OF WAYNE, MICHIGAN, ET AT. a. . ee \N WRIT OF CERTIORARI’ TO THE v NITED. RTATES CIRCUIT, COURT "OF APPEALS FOR TUE FIG HTH Chtcr [Tr * © ’ -— 4 a ; > - - + a. A . Gc. . 4 *, . 7, we U : a o Tr - PETITION FOR CEKTIORARI send 28, 1944.) ‘CERTIORARI GRANTED JANUARY 3, 1945. VOL: ~ TRANSCRIPT OF * RECORD. - United States Circuit Court of Appeals. EIGHTH CIRCU IT. os Ne RMB Oe \ : . PANHANDLE. EASTERN: PIPE LINE COMPANYY A CORPORATION, JLLINOIS NATURAL GAS: - COMPANY, A CORPORATION, AND MICHIGAN - GAS TRANSMISSION CORPORATION, A. COR. , PORATION, PETITIONERS, VS. , i FEDERAL POWER COMMISSION, CITY OF DETROIT, ~ MICHIGAN, COUNTY OF WAYNE; MICHIGAN, - MICHIGAN CONSOLIDATED: Gas COMPANY A CORPORATION, AND -MICHIGAN PUBLIC SERVICE COMMISSION, HESPONDENTS é POWER € ‘UMMISSION. .. FILED FEBRUARY 6, 1943. = ~—_ . : Ne! a3 -@ ’ a : / a ee ; - ie U nited Statés ee Court of Appeals : ee «EIGHTH CIRCUIT. : y ; - | > Le * ; ‘ Mm. Ale ae ee Nel 12 M6. "> PANHANDLE EASTERN. PIPE LINE COMPANY, A : CORPORATION, J LULINOIN,S NATURAL GAS COMP ANY, A CORPORAT TON, AND MICHIGAN — GAS TRANSMISSION. CORPORATION, A ‘COR- 2 PORATION, PETITIONERS, ‘ oh ees tery aie “ae Vs. ee ‘ : + CPEDERAL POWER COMMISSION, CITY OF DE TROT, oe». ‘ pa a MICHIGAN, COUNTY OF WAYNE, MICHIGAN, MICHIGAN. CONSOL IDATED GAS COMPANY; A CORPORATAOQ AND MICHIGAN PUBLIC, - FSERVICK COMMASSION, RESPONDENTS. the 2 oe : PE TTS TO REVIEW AND SET ASIDE ORDER OF FEDERAL aber cor. . POWER ¢ OMMIBSSION, LF ; : PILED PEBRLARY 6, 1943. — = ‘Index, Volume I. - : : : A “aay Original Print. = . ‘ : Ms Petition of Panhandle Eastern Pipe Line Company, Illinois es J Ngtural Gas Company, and? Michigan Gas Transoyssion ¢ar- ‘ poration te review and set aside an order of the Federal Pawer . 2 : 5 = ommission cp A 1 af Nature of proceedings as to which review je sough e ae 2 a Facts and statute upon which venue ds based f 6 og Points ‘on which petitioners intend to rely... >... a 6 ' Exhibit A, Opmion No. 80 of Federal Power Commission. . a 20 ae y [ . theta Se i aS r : | 4 4 . “3 ; sar - | Original Print ser * Order of Federal nian Commigaien . re: Juving rates, = C,H. Lewis.. Pat planer c.ore--- 9033 3236. Leith V. Watkins, resumed. SNR WEGEE van ici kceas, eee. ee ov —_— = — « @ “William G. Maguire Leith V. Watkins, resumed David Friday, resumed Ot W. Morton, resumed Charles W. Smith _ Edward L. Dunn ; \ hasles H. Hinton, re anand ag. 2 0. Burnham, resumed Index, Volume VI. ‘Leith VV: Watkins, ‘resumed * Report, P: MeDonald: Bidi lisan, C.H. M. Burnham, resumed - Leonard Spacek. , Letter, P. McDenald | Brfdison Pipe Line Company; April &, 142 P. McDonald Biddison, resume! Paul B. Coffman, resumed P. McDonald Biddison, resumed Leith V. Watkins, resumed ; Po MeDgnald Biddison, resumed _ J.D. Creveling, resumgd Samuel Joseph Consulting Engineer, to J. D. Creveling, Presicent, Panhandle Eastern Pipe Line C ompany, November 24, 1 4} to ~Raphand le ON 3s OSO0 . QSOS 9928 Eastern . Statement spe to Production from Husntos Fie ld Le tter, ©. April 9, 1 letter, ©. April ll, aa J. G. Shattuck Exhibits: 1, Statement of: operating Results of Panhandle Eastern Pipe Line Corapany and Michigan Gas Company, 1938-#940" Operating Results Cost, and Cost Less Reserves, Results as of Decémber 31, Cost, and® Cost-Lese-Reseryes, of Plant , 1939 Cost, and Coat Lesa Reserve A, Results as of December 31 Restilts as of Decemb er 3l, - Working Capital Pstimate, December 31, o of Plant 1938 194 ) of Piant Transmission Morton to Fede ral Power Commission, Morton to Federal heees re ‘ommissio n, 99. 12 9977 10076 10399 104 52 10534 ° 10559 10059 106 1O6US 10nd 10701 . “10775 1077: and -Operating and Opersting and Operating 1938 3040 _ Working ‘Capital Pstimate Approximate Payroll Basis, December 31, 1940 e = . > > as > f 2, Determination of possible Revenue Rediction of Pan handle Eastern Pipe Line Transmission Company Company and -Michigan Gas : - 107 10777 10779 107 tan 7 70 elO7S2 53 3, Excerpts from Registration Stateme nt of Panhandle *... Fastern Pipe, Line Company ‘filed with the Securities & Exchange Commission, February 1 2. to Gas Rese rvs ¢ ’ \V (937, with respect ~ . 10785 Original Print 9247. 3300 4320 3351 9349 3353 " 9364 3361 - O76» 34117 9570. 3433 ai69 3478 Q7¥4 3533 3557 3616 3631 : 3676 2853 / 3S82 3919. : 3933 4 "3976 Ss re 2 3987 . 3980 °° 3000) 3991 - . 4012 sor 4013 4014 4015 4016 O17 Mt 3 4019 os 4, Excerpt from Registration Statement of Panhandle ° Eastern’ Pipe Line C ompany filed with the Securities & Exthange Commission, November 13, 1940, with respect | 2 to Gas Reserves. ; re ey Fo ae 10786 . 5, Excerpts from Registration Statenient of Panhandle "Eastern Pipe. Line Company filed with the Securities. & Exe hange C ommission, November 13, 1940, with respect to Design, Constructi#n ant Maintenance of Property _ 16789 6, Statement of Operating Expenses and "Taxes at 100°; Load Factor Operation... tba Remnttis a aaeac.s ee 7, Statement as to necessary Price | per M.C. FP. at 100% Load Factor. ms ies hake _&, Statement of eitiinahe ad i ffect of 100°; » Load Factor on earning Power of System...“ . 10795 4%, Statement of Factoraffecting the Nature and Magnitude ae of réported Net Incomes. —. , ~ - 10796 Ve 10, Statement showing Effeet.of Variation in ac counting ert; : Hy: ractices on Reported Incomes of an Enterprise... ...+ 10799 1, Chart shdwing Relation of Yield of United States ‘ Treasury Bonds and Notes ’.. 10800 12 , Statement showing United States Trea Bond Yields 10801 13, Chart showing History of Yiek Iv’ of United States : Bonds, 1920-1939... 108065 14, Average Yiel lof U aited 8 ‘tates Teeneery Bond. _... 10807 14-A, Securities & Exchange Commission Releases Nos. 2775 and 2834 — Findings and Opinion of the Commissiow_ in the Matters of Panhandle Eastern Pipe Line C aes al re etal A ST ee cen es . .« 10808 > a . Ae. . oo : 4 | ' Index, Volume IX. Order’ of Securities & Exchange Commission Denying Applications in Part and granting Applications in Part, 10842 Supplemental Order of Securities & Exchange Commission amending Findings and Opinion, 10844 17, Miscellaneous Data concerning Property ann Ope rations ; of Panhandle Eastern Pipe Line Company. . * 10848 Schedule 1, PanharMle Eastern Pipe Line C ompany * 4021 4025 ‘4029 4030 A030 4031 4034 4035 °° - 4037 4045 4047 4047 4087 4089 4090 _ 4090 — 4091 4099 4101 4103 4125 ; Original Print Schedule 3, Estimated Remaining Gas Content in the sot ‘ Texas Panhandle Fiell under Acreage constituting ~ Reserves of Panhandle Eastern Pipe Line Company as — ee Mas eee , lO@R7 4125 Schedule 5, Comparison of Onn Flow Potentials i in Tekas Panhandle Gas Field «2.0... -. 10990” 4129 . - Schedule 6, Gas Acreage owned and unde or Gas Purchase Contracts held by Panhandle E astern Pipe Line Come. | pany as of June 30, 1941... 1lOvgt 431 “Schedule 7, Hugoton Productién to Argus Natural Gas ” Company, Ine. by Panhandle Enste mm Pipe Line Com- ; PANG, CORE... 04. 5 2 2; .. 10992 4133 Schedule 8, Te *xas Production to p anhandie Eastern Pipe. 7 Line Company... * 100934135" ; Schedule 9, Hugoton Production to Panhandle flastern ——* Pipe Line C ompany : , AOW9F = 4143 Se hedule 10, Hugoton Production to Panhandle Eastern ‘ Pipe Line Company... 11000) 4149 Schedule 11, Analysis of Cumulative Production to Main ; -Line to and including Fiseal Month, of June 1941. 11003 4155 Schedale | 12, Coniparative State ment, of Production and Purchases from each District for the two Years ended : ; June 22, 1940 and June 22, 1941. "3 “11004. 4157 , Testimony of Glenn G. Bartle. NO 4159 Se hedule 3, Estimated Original Gas Content in the Huge ‘ton Field, (Kansas, Oklahoma and North Texas Pan- handle), under Acreage constituting Reserves -of Pan. handle Eastern Pipe Line Company as of July 1, 1! O4l- 1AORS * 4176. Schedule 4, Estitnaéed yunmetered Gas from Panhandle Eastern Fipe Line Company Wells in the Hugoton . Field Kansas, connected to“ Argus Natural Gas Com pany, Inc. as of July 1, 194] ; 11041 4181 - 37, Testimony and Extribits, Market Value of Leases of ; ‘Panhandle: Easvegy Pipe Line Co... -.. WONT. 4187 R. J. Wallace ideas ; .. 1104? | 4187 Summary of-Market Value of Losses seme 1104 4109 38, Basic Statistics used in calculating.Interest, ad valorem: . .” g Taxes ahd, ‘ope rating mepense attributal le to unused’ ¥ ; 4 ” Capacity... . : 12159 4203, 39, Reproduce tion Cost New of Plant, Property and Business * of Panhandle EasternmPipe Line C gmpany and subsidiary " Companies as of June 30, 1941 ° s 12152 = 4206 x Letter P. McDonald -Biddison, « ‘onsulting: Engineer. r to-- = Panhandle East@rn Pipe Line © ompany;, August 29, 1941 12163 © 4206 Statement relating to Re production CostNew—June : * ene ee fun bape 12154 4207. Summary . 12165 4207 _2 . 3-A, Reproduction Cc as New of Plant, Property “and Busi- . ‘ ness of Panhandle Eastern Pipe Line Company and ee =. <> subsidiary C ompanies as 6f Jpne 30, 1IM41 13130 4208 ‘3 _ “Letter P. McDonald Biddison, Consulting Engineer, to "Panhars!le Edstern Pipe Line C ompany, August 20,1941 13130 4208 . .- 5 vit a ; . . a Statement relating to Reproduction Cost New —Juné 38, Ua Pou oe us« Poa ete ne dea Summary. . 40, Table showing estimated Main Line Sales, years 1941- 1946, inclusive... .. . 41, Graph showing Sales and Gas p lant by Ye ears, \ Pashandis Eastern Pipe Line Company and Subsidiary Companies. . - 42, Testimony of C.-H. Hinton relating te Future Capital Expenditures and Operating Expenses in Production and, Gathering System West and South of Liberal, Kansas... 43, Schedules presented in connection withthe written Testimony of C. H. Hinton... ‘ Schedule 1, Additional Capital Expenditures required to ~ “produce and gather Basie Load, or Present Require- ments _. nae 8 ae eatin «Obie nk ae ANA Schedule,2, Additional € ‘apital E xpe nditures required to produce and gather Anticipated Increased Load. . Schedule 3, Estimate of Operation.and Maintenance Conte -west of Liberal Panhandle Field — Basic. Load. ’ Schedule 4; Estimate of Operation and Maintenance Costs — west of liberal Panhandie Field, — Estimated i Ge sa ; . Schedule 5, ProbeblAroduction from Panhandle East- ern’s own Wells and Wells under Gas Contracts (Pan- handle Field) during the Period July 1, 1940 to :, ee ber 31, 1956. 47, Panhandle Eastern Pipe Line Company and Subsidiary Companies, future Capital Requirements, Gas ‘Irans. mission Facilities; biberal Station and Eastward - 48, Statement show ing Balance Sheets per ‘Books Panhandle astern Pipe Line Companyzand Subsidiary Companies, as ateach December 31,1 hrough 1940 and as at June 30, 1941 49, income Statement Pegs tiyoks o Period from ig l, 1932 to December 31, 1 wD, “State ‘ment, showing beth Surplus per ake Patio’ from Commencement of Operations to June 30, 19415... 51, Statement showing Capital Surplus per Books, Period — September 1, 1930 to June 30, 1941... ”. 2. Statement showing Investment in Gas Plant as at eoth a scemnber 3], 1930 through 1940 and as at June 30, 1941 53, Statement of Dividends paid on ‘Class A and Ckiss B Preferred Stocks from beginning to September 1, 1941 beginning te September 1, 1941.. 55, Statement showing Comparison of Sales and Revenue, Principal Industrial Customers, years 1939, }940 and 1941 ' 55-A, Statement showing Comparison of SaleS and Revenue Principal Industrial Customers, years'1939, 1940, and ‘4h , 56, Statement of Gas Produced, Period from April, IVP to * June 30, 19041. . -= - 57, Statement of Gas Pure hased, Petiod from April 1, 1932 - to June 30, aeak.. Vii ° Original Print 18131 4200 _ 13133 * 42u9 13149 4211 13150 © 4213 “Sis” 4215 13193-4244 13104 4244 13195 4244 13196 “4245 13199 = 4251 13202 . 4257 e-.° 13206 4257 13207" 4259 13210. 4265 13212 4269 “13214 4273 13215 4275. | 18217. .4279 ' Ot, Stagement of Dividends paid on Common Stock from ; _ 13219 94280 13220-4281 . 1322) 4283 13222 4284: 13223. 4285 : og: Original Print | 58, Statement of-Gas Revenue, Period from April t, 1932 * to June 30, 1941 and Schedule showing Detail of Sales’ to various Types of Custome ore, 1939 and 1940- ; . 13224, 4287 -. . Schedule 1, Statement of Gas Reve ‘nue, Period ffora April : ‘1, 1982. to June 30, 1941 ; 1$224° 4287 Re hedale 2, Detail of Sales to Gas U tilitie *s, Vears 1930 Oat ~ and 1910.0. P 13225: 4289° |e Schedule 3, Detail of Sales to Industrial C ustomers, years ey , 1939 and 1940... : 13227: 4203 : : 50, Statement of Gas Revenue by States, Period from Aprif? os uF rae 65, Study re lative to Rate of Returmon Panhandle hestern * Pape Line Company peepared by- Paul B. Coffman, Vice. ‘President, Standard and Poors Corporation. Table of Content? : _ Chart No. 1, Main Transmission System of Panhandle * Eastern Pipe Lihe Co. and Subsidiary. . Chart No. 2, Growth of Natural Gas Industry in | ‘hited States of America from 1906%to 1940. Chart N& 3, Consumption of Nafural Gas-in United States of America from 1919 te 1940 — ae. Chart No. 4, Revemie from Natural Gas Consymed in _ United Statesof America from 1919 to 1940 m A > - . Original Print 13352 4375 - 13353 4377 - 13354. 4379 13355 4381 13356. 4383 13357 4885" 13358 4387 13359 «4889. ° 13350 4391 « 13351 4393 13379-4414, 9 . 13380-4414 ~A3387 | 4426, 13420) 4461 . 13465 4501 13495 4521 13533. 4547 13584 4547 13542 4559 2 13548. ,4567 ei 13556 4571 13552 4573 -~ "43398 Pe "13399 4447 - o Chart No. 5, Average Revenue, per M.C.F. froni 1929 to eee ss wae rates Rae ore ke eee ve Chart No. 6, ‘Paskindle Sales by States, vs. “eid Consumption of Natural Gas from 1934 to 1940.. -Chart No. 7, Trends of Grogs Revenue from 1934,to , 1940, Original Print _ 13556-4577 ms thn Panbandle vs. other Pipe Line Companies-and Industry 48558 4579 ~ Chart No. 8, Operuting Ratio of Panhandle Compgréd with other Pipe Lme Companies frém 1934 to 194 Chart No. 9; Trend of Revenue and Expenses of Panhandle ' Eastérn Pipe Line Company from 1934 to 1940. Chart No. 10, Percent Earned ‘on ‘Invested Capital of Panhandle Basedsipon Capital Structure. . "Chart No; 11, Percent Earted on Invested Cgpital o' ‘Panhandle Based‘upon Net ——" Intangibles and Working Capital. Ji é Chart No. 12, Re tarn to & ommon Stoc khollers of Pan- F handle Eastern Pipe Line Company from 1934 to 1940... CharteNo. 13, New Tax Bill will reduce Income sharply Computations Based on € )perations — Twe lv e Months ” ended June 30, 1941, ......00 eee ; 13570 - 4591 rune No. 14, Percent Earned on "Invested ,Capital a Panhandle Eastern Pipe a — as of June ; ae - 30, Eo ere ° 13572-4593 * Chart No. 15> Percent Earned on Invested | Capital of = Panhandle Eastern Pipe Line © ompany -— as of June ne 30,1041... 13574 4595 ( ewe No. 16, Historical re atte a Debt: © apital” of Pan- . handle Eastern Pipe Line Company. —from 1930 to 1941 Chart No. 17; Effect of 1941 Refinancing of Panhahdle Eastern Pipe Line Company...... - Chart\No. 18, Historieal Coats of Preferred Stor k Capital of Panhandle Eastern Pipe Line C ongpariy from 1937 to Nes sates ites Chart No. (9, Earaings — Price Ratios of Natural Gas Prpe Line Sommon Stacks from 1937 to i940. : Chart No. 20, Qurre nt Earnings — Price Ratios of Natural Utes Pipe Line Gommon Stocks.. Re Cc hart No. 21, Cost of ‘Financi ing Nortjiern Natural Ges Company Bars Stoc k -- Offered to Public on September 10, 1941... Oe, SY ‘Chart No. 22, Estimated erent Cc = a Finaaci ing C om- mon Stock of Panhandde\yBastern Pipe Line Company Chart. No. 23, Continuing Grow th of Panhandle System Indicates Future Needs for New Cc apital.. nes * - Chart No. 24, Panhandle Sasi Pipe a Cothpany - vested Capital as of June 30, 1M. =e eee ee -* Chart No. 25, Preferred Stock “Cougual inyNatural Gas Pipe Line C ‘ompanies ere rereree? Cree Se ps Oe Chart No. 26, Earnings Neceseary 1S Maintain Credit Wosition of Panhandle Eastern Pipe I Company... (tart No. 27, Earnings Necessary to Maintain Credit Position of Panhandle Eastern Pipe Line Company .. ‘Chart No. 28, Overail Cost of Capital to Panhandle East- ern Based on Ideal Capital Structure... eae hae ree 13560 * 4581 - 135p2 _ 4583 13504 4585 es: + “ 13566 4587 13568 4589 © 13576 4599 13578 . 4603 13580 4605 13582 4607 1BAS4 4609 _. 13584’ 4613 13588 4618 13500 4617 13592. 46z1 °°" 13504 4623 13506 " 4625-” ee 13508 ., 4627 13600 4829 Ree e / fs i for Operations and Mairtenance.. SG Chart No.. 29, Dollars needed Annually by, Panhandle ‘Chart No. 30,, Dollars — Annually by Pablianule OE ME ones coos eae ee et ° c hart No. 31, Dollars aiaiiad Aintuaily by Panhandle to return Capital to Investors when Gas Rese ves ane Exhausted. . Chart Now32, Dollars wiaded “Annually by Piskeadhs for current Capital Réquireéments — Bonds . hart No, 33, Dollars needed Annually by ‘Panhandle ot for current Capital Requirements — Preferred Stock :. Chart No. ‘f: Dollars needed Annually by Panhandie . Capital Requirements ~- Common Stock . ° for curre Chart: No. 35, Dollars needed Annually by Panhandle - _ for total current Capital Requirements — Total -In-—- ‘vested Capital......... Peer ree epee tor ae Chart No. 36, Dollars’ needed Annnally ‘a Panhandle . to provide Service-to Customers, a Fair Return to In- .vestors and restore Invested Capital wher Gas me serves are Exhausted Chart No, 37, Dotlays needed Annually by ahead to Provide Service to,C ustomers, a Fair Return to In- vestors and restore Invested ( ‘apital ‘when Cias Re- ‘serves are Exhausted‘ 7 + Table for Chart No. 2, Growth of Natural ‘Gaa ‘ih the . United States of Ame rica for the years 1906 to 1940, ‘Inclusive. . Table for Chart No. 3, Consumption of Natural Gas’ in | the U nited States of America for the Years 1919 to 1940, Inclusive. . - "Fable for Chart No. 4, Rev enue from Natural Cee Ce on- sumed in the United States of America for the years 1919 to 1940, Inclusive. Table for Chart No. 5, Sines Revenue pet M. C. F. from Natural -Gas Consurmned ir United renee of Amerign 4 at Points ef. Consumption. . Table for Chart cp —— Gas Sales us States for - " handle Eastern Pipe Line Company vs. “Other Pipe Liné Companies and the Natural Gas Industry, to 1940 Both Inclusive . Table for Chart No. 8, Operating Ratio. of ahead Eastern Pipe Line Company compared: with other Pipe _ — Line Companies exclusive of Taxes, 1934 to 1940... * Table’ for Chart No. 9, Panhandle Eastern Pipe Lite: Company, Trend of Ravenna and Expensés....... Table.for Chart ‘No. 10, Persent Earned on’ Invested Capital, based upon Capital Structure _ Table for Chart No. 11, Percent Earned of Invested - Capital, based’ upon Net er —_ow and Working Capital........ Table for- Chart No. 12, hehare torC onunen iad kholders 1934 to 1940 Both Inclusive. ........ oh ere er Original Print, 13602 4633 “ae 13604 . 4637 13606 4639 -.... 13608: 4641 13610 4643 13612 4645" ye 13614 4647 Diss 13616 4649 fp 13818. 4351 13619 4653 13620 4655 _ 13621 4657 - 136224659 .... 13623 4661 , Pan- 1934 13624 ° 4663 oe: 13627 4669 es 13628 4671 13620 4673 Hie 13630 4675 3° s . ee Sa _ Original Print it, toe. Table for Chart No. 13, Consolidated Statement of Profit : Ba and Loss for the twelve montlis ended June-30, 1941 13631 4677 ‘ Table for Chart No 1@ Percent karned én Invested’ , ; : Capital — twelve months ended June 30, 1941 13932 4679 Table for Chart No. 15, Percent. Earned on Iifvested ~ . c apital i in the twelve- months ended dane: 30, 1941 13633 4681 Table for Chart No. 16, C “otuputation “ol Weight ted Average Cost Ratio of all- “Bond Issues 1930) -—— June 30, ral Oe eg ee ice -.. 13634 - 4683 | Table for Chart No. 17, Projec tion am Average Interest : Cost, ‘Debt Retire ment and Amounts to be outstanding F of Debt issued in the 1941 Re ‘financing... ; _ 13639 4593 Table’ for C hart No. 18, Preferred Stock. . « - , 130 4695 Table for Chart No. 19, Earnings — Price Ratios on : Natural Gas bine Line, ee Stor ks from 1937 to. Sten ..ve,. 13681 - 4007 * Table for C hart No. 20, c urrent E ‘arnitivs — Prive Ratios aly 4 on Natural Gas Pipe Line Common Stoc fe oa {3042-4699 - Tabte for Chart No. 21, Data regafding Public Offering . of 355,250 Shares Northern Naturil Gas Company ‘3 Common Stock... 0042. * vide Service to‘Customers, a Fair Return to Investors’ * and Return, of Lrivested ¢ ‘apital when Reserves are _ Exhausted ...... 13649 4713 49, Statement showing Atnount d pial on Book . Cost of Property as of June 30, 1941 13708 4715. 70, Reproduction Cost New of Plant, Property and Business * as of June 30, 1941 | Determined from Valuation of Septem, ; ber 30, 1938 ‘by addievon of Neg_ Property hak litions, plus P Items of Working Capital, Value of GAs Purchase Con- , tracts and Cost of Business Deve k pme nt from Valuation of June 30, 1941), STL 4719 71, Valuation of Property; Plant “an Equipment, Supte smibe aes, 6. A. epi ent: “13712 4719 Lettey from.P. Me Donald Biddison, Consulting Exgineer, a _.to Panhandle Eastern Pipe Line c OTAPARY 5 October 14, , : , _ ery . "13713 4719 . . . Qo . : . e* ° ° R » . * ff Pe re x yy Original Print Statement rélatingyo Appraisal of Pygperty of Panhandle ee Eastera Pipe Line Company a September 30,1938 14719 1721 72, Statement of Net Additj o Gas Plant per Books ear’ from October 1, 1938 to Juge?30, 1941s. 7 14178 4723 74, Working,Capital..... . : ‘+. WSIOS 4724 - Table I, Total Additional Necessary Materials and Sep. fe plies by Departments . 14198 4724 “Table I, Additional Necesssary Materials. and Supplies by: Degirtmente, Classified to show the Aggregate © > " Supplies. Tees . 14190 4724 8 Table Uf, ” Summary of Misimum Rensvanhde Asnounte of Working Capital Currently Needed... 1420000 4725 Table IV, Total Cash, Prepaymenta, and: Ms aterials and ar Supplies Actually Matntairg| by the C omparty at Cer- : . tain Dates inthe Past _.- 14201 4725 5, Natural Gas Supply, Value of Gas Bean eves and Wells, °° Sea ” one 1, 1937 “ « 14202 ° 4726 . Letter Ralph J Davis, Inc, Engineees, to y wees ; . Rastern Pipe Line C ompany and othe rs; February 10, ee oe “14203 4726 Table No. 2, Valuation of Produci ing 5 and Proven Leases ; in Producing Area ‘of Amarillo, Field ae 14227) 4744 Table Ne. 3, Valuation of Producing and Proven Leases . in Producing Area of 4lugoton Field 14228 4745 - Table No. 8, Classific ation of "Meta Under Lease, . February 1, 1937 ae: ; ; M235 4745 » Panhandle ‘Kastern Pipe: ‘Line e gmpany Natural Gas” He gers “FF 11243 . 4g Letter, Ralph bE. Davis, Inc., Enazinee ry, | to ‘Bosrd of : - + Directors of Panhandle Sante rh Rane Line Compatiy, ade November 12, 19)... °. +. a" 14244. 4746. Summary of Acreage tn Amartllo and lastin Fiei ie 14248" 4731 77, Description of Physic is ed rty of Mich tigan Gas: ‘Frans. . Es * mission Corpofatior | Nie Sealine aM 1425 ATSB 5 Testimony of fieorge S. Young. . BPs italy BT ae NS ona * 4753 " Schedule 1, Compressot Stations ; ai: 14272 4770 Schedule 2, List-of C onfimunities receiving Ne rvice from . ° * Publie Utilities to whom Mic ‘higan Gas Transmission Corporation sells Gas -Purchased from Panhandle Se ° : Rastern Pipe Line Company, Population and Number" c, of Customers as of June 30; 1911.° c ‘142744771 Schedule 3, List of Industrial Constmers teceiving Service on an Interruptible Basis indirectly from Michigan Gas Transmission Corporation System, June 30, 194) 14277 ° Schedule 8, Michigan Gas Transmission C Orporation Sum- Pt ary of Miles of Pipe by Sizes, June 30, 19415. 14295, > . 7%, Comparison a Daily provided Capacity to de! liver Firm Gas with Maximum Daily Délivery of Firm Gas : from System of Michigan-Gas Transmission Corporation. L4i3il - 79-A, Comparison of Daily provated Capacity to, Deliver. . Firm Gee with Maximutn Daily “Delive?y of Firm ¢ 748 B) _ find total delivery of Gas from. the Pipe Lines owned or operated by Michigan Gas Trapstuission Corporation for ., : PF fs the Winter Period of on. 1942 ito’ ee 27,1942..°.. 14312 a | 2 4785 - * ’ rn : P ‘ 79-B, Total Delivery of Gas from Pipe Lines owned and operated by Michigan Gas. Transmission Corporation on Days on which the De ‘livery of Firm Gas from System was the Maximum SO, Report of Inspection of Equipment in the. ‘Compressor. Stations of the Michigan Gas Transmission C orperation as H.C. Lehn... Sores > , Deprec iatTon Study, Mic ices Gas Transmission C or- tw on hy gt NN F085 6 ease tuo koawan'e Letter, H. ie ac ias Engineering De partment, to GS. nee, Vice President, of ‘Michigan Gas Trans- / mission-Corporation, November" 10, 1941 Summary of Inspection Data... “ w2, Aécrued Depreciation on C OMpressor Station Structure, ’ measuring and regulating Station Structures anel Equip- ment and other Transraission Structures and general, Equipnient as of June 30, 1941 by Francis 8. Haberly 53, Reprodiction Cost new of Plant and Property of Mi¢hi- * gan Gas Transmission Corporation ss of dune 30, 1941 by Francie 8. Haborly... poration. .«.... “ ol. 1467 471 : : Statement A, Outline of ( Drigin ae: De ‘ve bigeiie nt 14489 4878 Statement Atl, Comunon- Stock issued and Outstsucding at January 1, 1940 4nd June 30, i941. 14402 ° 488} ‘Statement B, Statement showing Ac “quisition by Keport- ‘ing Company or Pre: fecessors : af Gas Ope rating Unit o‘+ | ' or System, ete. 14493 4883 : Statement ‘D, Statement relating to Cag . Plant as of ‘ . : = ae January Il, 1940, ete. = “14494 4885 nae Statement Ey Statement showing Seteenaty of “Adj: ist- “> - “ment relating to-Gas Plant, ete. 14495 . 4886 Statement F&Statement ee to%Gas Plant «4 of January 1, 1940, ete. 14491 4887 Statement , Statement relating to Balance Sheet an i *, . January 1, 1940, ete. 050, mee 14498 48918 ~.* Statement H,; Statement relating to Suggeate od 2 lan for 3 . Peisbaliok | Se 14499. 4893 Statement. [, Statistical “Information Relative: to Gas —— me Plant at June 30, 1941... 14300 4893 92, Michigan Gas Transmission “Corporation Statefhent - ' showing Original Cost Depréciated to present Conditions. as at June 30, 1941 and obse ‘rved Depreciation’as at June. " 14507 4908 93, Mich of Contributions made opment for the years 1936, May 31, 1938 . wii 4, Michigan Gas Transmissian _ Showing working Capi 05, Michigan Gas Transmission Corporation Cost of Completing work in Progress at June ‘Estimated Gross Income tot pleted Projects ; e wan Gas Transmission Corporation ~ Statement te Customers for Business Devel-. 1957 and. five months ended’ ~ Corporation Statement tal as of June 30, 104) - Estimates! 30,1941 ane e derived from the Com. - . . . Pe » % ree . . “es. . 97, Michigan Gas Transmission Corporation — Variation 9, Michigan Gas Transteission Corporation of Income and Expense per book ber 31, 1936 te 1940,4ne1 30, 1941 ard six Maf AL, TO” 1, Michigan G of Income and Expense per hooke and Dollar spent for Main Compressor Units Graph relating to Variation-in Pure Dollar spent for Steel Pipe ; ‘Gtaph relating to Variation in Purchas Doiler spent for ‘Station Structure Ma Graph relating to Variation in Purchasing Power of the Dollar spent for Station’ Steucture. Labor in Purchase Power of Dollar as Related to Gas Plant Graph relating to Variation in Purchasing: Power of the - ing Power of the terials Graph relating to Variation in Purchasing Power of the. Dollar spent for Station Equipment Labor- Graph relating to \ Dollar spent “Statement relating to \V for Mains Instadlations the Dollar as related to “Gas Piant:’ Period per books on an emonual basis, us Transmission Gorporazion and redistributions necessary te ref for six months ended December 31, 1940 and June “pany, Line Losses and Dex emiber 31 P endel dune 30, 1941 ’ 10l, Michigan Cas Transmission Corporation tive Statement of Operating | December 31, 1936 te Layo, ended June 30, 194] and si and Decenber 31, 1940 ; 102. Michigan as ‘Trangmission Corporation and Maintenance bx “months ended June 30, 1941 - 103, Michigan showing Gas Sales, Gas Tratispofte:s, Cas Purchased for the years ended ‘ariation in Purchasing Power of the ’ Py . ‘ ‘ . wae aration in Purchasing Power of Statement 8 for vents eftded Deverit- usive, twelve Mont tes ended June iths ended June 30, 941 and I Jecemnber 7: Stazement 1 after Adjustments e(f the 2°46 months aU, 141 anid fortwelve months Compara. teVenues, for vears ended inclusive, twelve tiontiis na ‘as Transmission Corporation months ended June 30, 104) Operation pense per books for the: twelve ptatement 1936 to 1940, inclusive, twelve montis ended June 30, 1941 and Dy cember 31, 1940 106, Registratian Statement of Panhandle J hing Cotnpany No. 2.4507. Exchange Commission November 18, from. filed with the “astern Pipe Securities & 140, Excerpts Original Print Hasing..Power of the, , . : LISOS = 4905 L510 4908 M4517 4919 14519 4921 (4522 4923 14523 4925 14524 4997) 14525 4920 1452 > 4934 14527) 4933 S28 4935 14530 4937 14533 4943 14537 “4951 14588-4943 f As used by { ‘om-,: 1454) | 4957 . 14548 4959 “et . f . , - * Original Print- Cover and Pages: 1 to 4. ; _ 14548 4959 ~ Pages 45 and 46... ; ry. . PRES 41969 ¢ Pages @and 61... - a : ~. 14608 * 4973 Page 8-1, Auditor's Certificate >. es "14626 4977 Pages 8-3 to S-7, Balance Sheet as of D&eember 34 , 1940. 14628 4979" Pages 8-17 to 8-24, Intangible Assets, ete. ~... 14642 4989 - 107, Report A-LIASS8 of ‘the Committee on Stock List, New ; : York Stock Exchange, application for I. isting of the first . Mortgae and First Lien 3°) Bonds, Series B due-Noven» | aoa "ber 1, 1940 of Panhatidle Eastern Pi ipe Line Company... 14651 5005 ot Seer - 0 $4657 * 5005 ‘ 108, Letter of BP. Me Donald Bick eos : re Provision las Re tireme nts, Depletion and Amortization for year 1938. 14732-5008 100, Letter of P. McDéaatd Biddisonre Provision for Re. 7” tirements, Depletion.and Amortization for year 1939 14733 5007 — “110, Letter of P, MeDonald Biddison re Provision fer Re- : tirements, Depletion an! Anirtization fortyear 1940 14734 5008 o 1, Letter of P. MeDonald Bidiisen re Provision for Re- . tireéments Depletion-and Amgpvation for year 1941. | 14735 ~ 5000 112, Table of Subsidiary ¢ wpe Panhandle Eastern . Pipe Line Company’ 14736 ©6010 ; 131, Future Division of Prodi tion; | et wee n Fie “Tis C on- ‘ side ring & reasonable ‘e xpected Load Increase Hazes ° 5015 - $2, Future Division of Production between Kelds without 7 : . Conside ration for increase’| Loads. - PA 1476 ONT ‘ 137, Ac res dseg in Determining We iuhted: Average Pressures. SS of Texas Panhandle Field ~ |is3 SOS 138, Dry Gas Prov duction and Pressure Decline Texas aes Panhandle Field ; 14784 SOO * 139,. Estignated Intake Pressures at Sneed) Compressor * Station. ..”. Ss 14785. S020 140, Fatimated Average Workine* Pressures at Well head for “Group Areas” shown on Exbibit 46: 147586) O21 141, Annus] and Cumulative Production from Panhandle Field, Texas"... et 2y LAIST 5028 142) Summary of Cost of Gas Produced and Pure hased —- ; basic Load for the years 1940-46, inclusive . LA7S89. = 503% - ‘Schedule 1, Summary of Cost of Gas Produced and Pur- chased per M (C.F. by Fields ssa Load for the years 1940 to 194 inclusive - ! 17) 5027 Schedule 2, Cost of Gas Purchased per Mo C.F. By ’ Fields - Basie Load for the vears TOW te gor in. Sion elusive..." eat ges Seren .-~ 14791 5027 ' Schedule 3, Production fosts per M. C.F. Producedby Fields — Basie Loa the veark 1946 to 1946 in clusive. #& : hay “..... 947902 8031" Schgdule 4, Transpértation sta ps per rM.C. F: Produced © by Fields -- Basic Load for the vears’ 1940 to 1946 in- elusive eS - 14793. $033 : Schedule $; Summary of Produetion. an: r Transportation Costs per MC. FY Produced by Fiek ls ~--Basie Load for the years i940 to (~ lusive.... piadek Cass 5035, , rr f e ae . a 7 ; ae XV o 143, Summary of Cost of Gas Produced and Purchased — ‘Estimated Future Load for'the vears 1940 to 1946, in- clusive:...:.: ce See eae Schedule 1, Summary of ¢ cont'd Gas Produced pet M.C.F. by Fielkts —- Estimated future Load for the years 1940 to 1946 inclusive. . Fe ~ Schedule 2, Cost. of Cas Purchased per M. C.F. by. Fields — Estimated Future Load for the years 1940 to” 1946 inchisive Schedule 3, Production Costs per M. C F. _ Produced by , Fiek is — Estimated Future Load for the years 1940 to 1946 inclusive. ” aoe eee Schedule 4, Transportation c osts per M. C: F Prodgced ‘by Fields — Estimated Future Load for the years 1940 to 1946 inclusive... \ Schedule 5, Sur umary of Production ont Trangportation Costs per M. C. F. Produced by. Fields — Estimated Future Load forthe years 1940 to 1946 inclusive... ... 145, Panhandle Eastern Pipe Line Company — Compiled tegistration Statement No. 3-4919 filed with the Secur- ities & Exch ange Cc aaa Bec ember. 24, 1941, Ex- - cerpts fron , ‘ Cover and following Page “Pages 2 to me ee none eine Pages @ to 20. - ‘Page S-1, Auditor's ¢ ‘ertifica ate Pages 8-3 to 8-9, Bals anve Sheet as of September 30, 1941 Pages 8-18 to 8-21, Reserves for Deprec iation, ete. 147, Hok ling Company. Act Release No. 3288, January 23, ° 1942 — Fin: lings and Opinion ef the Securities & E xchange™ x —— ission in the Matter *f Colambia Gas and Elec- tric Corporation, et al Order 149, Statement showing lavectment by Owners and Long Tetm Creditors at June 30, 1941, Panhandle Eastern Pipe Line Company 1M), Financial Data of C ommon Stock Tssues f Fleetric Boge Gage Utilities, Ye: ars 1935 to 1940, inchisive . harrungs — Price Ratios of Common Stocks in Various ” Divisione of the Utility Industry .. 152, Estimate of Federal’Income and Excess Profits Taxes, applying Rates. levied in the Revenue Act.of 1941 to Net elcome’ for the. Year ended June 36, 1941, Panhandle ‘Pastern Pipe Line Company + te 53, Statergent of Cost of Business. ‘Development Period’ froin April 1, 1932 to June 30, 1 , Panhandle Eastern, Pipe Line Company 157-A, Agreement between Panha ile Eastern Pipe Line: Company and Columbia Gas and ‘Electric Corporation “and Columbia OU and Gasoline 3 nae dated Jan- . Mary 31,1986 (Exhibit H-6: F 57-8, Agreement between Columbia Oil an 4. Gasoline Com pbc irs and Columbia Gas and Electric Corporation and 6 = re oe ite a nd Origina) Print 14795, 5036 14796-5037 14797 5030» _ 14798. 5041 14799 5043” 14800" 5045 14824 SOIT - _. 14824 8047 44827-5051 * 14834 5059 14924 5083 14926 - 5085 14941 5090 ° 15001 S17. 15114 5140 15117 - 5143 “15118 5145 15122 5153 15131° 5171 15135. 5177 15227, §183. Panhandle Eastern Pipe Line Company and Henry T. Bush and C.: Ray Phillips, receivers of Missouri-Kansas Pipe Line Company, dated as of June 1, 1936 (F ixhibit H- 9) Exhibit A, General Release IE xhibit By General Release to Leveivers Exhibit C, Release of Claim “e 157-C, Bound Volume containing Offer dated etuaty 31, 1936 of Columbia Gas & Hleetric Corporation and Colhttit- bia Oil and’ Gasoline Corporation to the Receivers of _ Missouri- Kansas Pipe Line Company, Exténsion dated " Mareh 5, 1936, Modification dated April 22, 2 HOR and Acceptance dated April 29, 1936 (Exhibit 1-2 Letters. 15S8,- Statement: diniiied Gas Raveie frets Indiasia Gas Transmission Co rporation and Michigan Gis Tranamis- > sich Corporation from November 1931 to November 1941, inclusive, Panhandle Easte rm Pipe Line Company .« 10, Purchase Agreement dated February 2, 1942 Cooker : Panhandle Eastern Pipe Line Company ‘and Glore, Forgan & Company and hidder, Peabody & Company Index, Volume XII. * 161, Estimated Main Line Sales and Revenues,-vears 1941- 146, inclusive, Panhantile Eastern Pipe Line C ompany | 162, Ten Years’ -Estintate (1941-1951) of Sales to Detroit "and other Areas and Types-of Sale. 163, Finane ‘ial St atement of Mie higan Cias ‘Vranaaiesion Cc orporation for Period ended December 31, }941.* Balance Sheet as of Déecember 31, 1041. . Assets - Liabilities Income Statement (ras... pM a we oe Non Utility Other Income Other Deductipns. . Surp)us Le Areata ie fias Expenses... : Statistical Report . Fixed Capital Expenditure, Report . 164, Suppleme ntary Statement of Financ inl Statement, Exhibie 163. 165, Operating Budget of Micl ‘igan Gas Transmission Cor- poration for the year r 1M42, Excerpt from... come per Federal Income Tax Return for the year 1940, Panharidle Eastern Pipe Line Company. - ” Yt 5491 193, Analysis of Keserve for Depreciation of Gas Plant, years ended December 31, 1932 through 1940 and six’ Months ended June 30, 1941, Panhandle “Eastern Pipe oe Line © ompany and Subsidiary C ompanies IM492 = SAB * 194, Panhandle Eastern Pipe Tine C ompany and Subsidiary « Companies pro- fortes, Consolidated Balance Sheet as of : December 31, 1941 g/ving effect to financing Transactions - consummated on February 6, 1942 and Acquisition-on ‘that Date of Capfal Stork and Debt of Michigan Gas or ee ae 2 _ Original Print Tranamiseior Corporation, and Indiana Gas Distribution. ; Cc ‘orporation, and Purchase of C ertain Property of Ohie Fuel Gas'Company ... 15494 5499 195, Panhandle Eastern Pipe Line C ompany and Subsidiary Companies ‘pro forma Consolidated Income Account (Noté A) for the vear ended Deeamber 31, 1941 15499 5505 196, Panhandle Eastern Pipe Line Company and Subsidiary 3 .Companies pro forma ‘Consolidate: i Income Account ety ds _ (Note A) for the year erided’ December 31, 1941 as ad- 7 . justed to give the Effect to Fede rai Income and Federal Excess. Profits Tax Rates proposed in Recommendation — + ‘of Secretary of Tyefisury Mergenthan on March 3, 1942 before House, WAys and Means Committee . ' 15502 5509 197, Panhandle astern Pipe Line Cormppanwand Subsidiary Corpanies Balance Sheet per bocks February 28,1942 | 15508 . 5513 _ 198, Panhandle Fastern Pipe Line Company and Subsidiary ~Cempanies pro forma Consolidated Income Account ' 2 — ~ (Note A; for the twelve moriths erided February 28, 1942 415510 5519 ~~ 199, Panhandle Eastern Pipe Line Company and Subsidiary -. i - Companies -pro forma Consolidated Income Account fs (Note A} for the twelve Months ended February 28, 1942 ax adjusted to give effect to Federal, Income and Federal Excegs Profits Tax Rates proposed in Recommendation. of Secretary of “Treasury Morgenthan on March 3, 1942 before House, Ways an? Means Committee . 15513 > 5523 200, Panhandle. Eestern Pipe Line Company and Subsi: liary, Companies (including Michigan Gas Transmission Cor ee and Indiana Gas Distributi¢n Corporation) Comparative Statement of Gas Plant ys of December 31, 1939, Deceruber 31, 1940, June 30, fon, December 31; -§ "1941 and Februar¢ 28, 1942 ¥4 15517 4527 201, Michigan Gas Transmission. eraoestinn Gas Plant, as at each December 3), 1931 through 1941 15519553 202, Panhatidle Eastern P ipe Line Company and Subsidiary , * Companiés, including Michigan Gas Transmission Cor- poration and Indiana Gas Distribution Corperation, Statement of estimated. Federat-ticome an® Excess Profite’ Taxes for the year 194] _ based on the Revenue f Act of 1941). - : ; 15520 = 5533 23, Paghandle- ‘Hastern Pipe L. ine Company and Sebsidingy ‘ ‘ Coyspanies. Statement of ¢ peration‘and Maintenance Ex ¢ pense year 1941 ‘restated to include Michigan Gas* Trans. - mission Corporation and. Indjana Gas Distribution Cor. poration for entire year! 15525 5541 204, Panhandle Eastern Pipe Line © orapany anid Subsi: sey Pad antl ~ Companies 1942 Construction and Retirement. Burl vets Sa Summary by Companies "15529 5545 205, Pankandie Eastern Pipe Line Company and Sub sidiary if Companies Statement of Certain Mstimated Construc-” tiors Expenditures for the vear 1942 eee 15537 5556: ar Financial Statement of Panhandle Easté qn Pipe Line Company and Subsidiary Companies‘for the period ” a ; ‘ : é. ™ ; Original Print - Financial Statement of pape raaaeeas Pipe Line Ae: Company and Subsidiary © ompanies.../..... .. 15783 5556 Financial Statement of Ilinédis N aturalgins Company. 15822 5600 i Index, Volume XIII. Financial Statement of Panhandle Eastern Pipe Line Company ....... 215, Tabie showing ‘!Employment, Payrolls And Average. : o Weekly. Earnings in Representative N York State Factories, from 1914 to 1941 employ ment | Index Numbers ; with Average from 1925 to 1927:as 100)". 15913 ° 5767 , 216, Indexes of Wholesale Prices and Cost of Living fee certain.months from 1913 to 1942 (1935-1934 100)... 15914 «5769 217, Graph showigg: Indexes Of Wholesale Prices and x ost of Living from 1913 te 1941... f 15916-5771 218, Testimony of Mr. Joe D. Creveling tee the Sec u rities and Exe hange Commission on November 29, 1941, in the Matter of Columbia Gas « kL lec tric C orporation, et al., Fide No. 59-33, ete, : fa 15917 577% 219, Panhandle Eastern Pipe Line Company Gas Salesancd——j a Pur ‘hase Contracts, ¢ -of Report by Bureau of In- ternal Revenue and Re lated C orresponde nee _..+. 4 15931 5783 Exhibit A, Statement relating to"Com parison of Values of Assets transferred, to Panhandle Eastern Pipe Line Company by Missouri-Kansas Pipe Line Company, ete. 15937 5789 Exhibit B, Se heduleshowing Sales of Various Units of Pipe Line Construction sold by Shippey, Maddin ond . Parish Gas Company, ete. *.... 15938 , 5790 Letter of Leith VW atkins, Sec etary: ( ‘ofitroller, of Pan. =i handle Eastern Pipe Line Company to N. F. Paxton, Assistant Secretary, Panhandle Eastern “Pipe Line - . _ Company; November 7, 1941 A: a Oe ores 15940 6702 co . ‘ Mier - ¢ q XY Ns Mors : ; \ W aiver of Restriction on Assessment and C lec tion of \epteon Print Deficiency in Mr Acceptance of Overassessment “15012, 5704 Lettér of J. P. Wenchel, Chief Cougsel, of Treasury De- partment to Parhandle Easterir Pipe Line ci nt ¥ April 1940. He 15 eo of Leith v. ' Watkins, ‘he retary- Céntroller, of anhandle. Eastern Pipe Line Company to J.P. ponent Chief ‘Counsel, for Treasury ‘Department, August 21, 1940. ONE pT joel LOAF Letter of J. P. W enchel,. Chief Counsel, of Treasury Department to Panhandle Eastern Pipe Line C ‘empany, ' October 3, 1940. aes rr en Letter of Leith V. W atkins, See rethry- f ‘ontroller, of Pan- 2 , handle Eastern Pipe Line Company to J.P. Wenched, , Chief Counsel, for ne ees February 24; > 1941. wos. ? 16066 20, | ~anhandic Eastern Pipe Line ; eS E xce pte trom - Minutes of Meetings of Board of Directors relating to. provisions for Depreciation, Depletion, and Amortization 15962 Minutes of Febrnary 24, 1942 .,.._.. 15963, Minutes of January 25,1941..." * ri tage Minutes of Detember. 14, 1939 ae eae eae 15965 Minutes of December 22, 1937 ‘ : 15966 Minutes of February 13,1936. *- age ‘ :. 15067 Minutes of Februapy 15, 1933... + sae 15970 Minutes of May 5, 1932. . . .. + 16672 221, Panhandle Easteri: Pipe Line Company and Subsidiary > Companies C omputation of working Capital Requiremetit 15975 Companies Computation of Average return Earned on Bae Net Investnrent for the nace April 1,-1932 to se ceniber Sl, 1041. ./....: 15YS0 222-4, Panhandle Eastern Pipe Line Company and Sub- > sidiary Companies Comparison of Average Return-Farne:| on Net Investment for the periods April 1, 1932 to Decen- ber 31; 1936; and January 1, 1937 to December 31,1941” 15982 223, Panhantile Eastern Pipe Line Company and Subsidiary — Companies substitute Estimate (lgss economic) of Addi- tional Capital Expenditures’ South and West of Liberal Compressor Station required to meet Peak day Sales of 307,000 M.C.F., 1942... 88 224, Panhandle. Eastern Pipe Line C ompany ‘and Subsidiary es - Companies substitute Estimate (less evonomic) of Addi- tional Capital Expenditures South and West of Liberal ‘ i ompressor Station required to meet Peak- lay Salea of ’ 338,000, M.-C. k,, 1942... : i504 : 225, Panhandle Eastern Pipe Line Company and Subsidiary Companies Estimate of Operation arg! Maintenance Costs ‘South and West of Liberal Compresapr Station, 307,000 .M. C.F, Continuous Daily Sales Capacity Operation at . 70° Capacity Factor 15085 226, Panhandle Eastern Pipe Line Company and Subsidiary Companies Estimate of Operation and Maintenance Costs XY @ 5812 SSIS Pa ‘ _ SSLS 5818 5819 5820 5820 5821 5830 222, Panhandle Eastern Pipe Line.C ompany and Subsidiary ine 5838 ‘ 5839 South and West of Liberal Compressor Stations, 307 ,000 ‘M.C. F. ‘Continuous Daily Sales C apacity Operation at. . 90% Capacity Factor... tT 55087 227, Panhandle Eastern Pipe Line Company ani Subsidiary . Companies Estimate of Operation and Maintenance Costs South and West of Liberal Compressor Station, 338,000 M. C. F. Continuous Daily Sales Capac\ty Cyecelion at 70°, Capacity Factor... : . 15989 . 228, Panhandle Eastern Pipe Line C ompany nd Subsidiary Companies Estimate of Operation and Maintenance Costs South and West of Liberal Compressor Station, 338,000” M. C. F. Continuous Daily Sales C apacity )peration at - “90% Capacity Factor.. thi ° 15991 — 229, Capacity Study April 7, 1942 c ontinuows Dyily Deliv." ery Capacity — 307,000 M.C. F. 15993 230, Capacity Study April 7, 1942 complete ly Idoped and econoinically powered Main Line System with Economic _ Production. Transmission Expenditures -.:.... 15908 231,. Capacity Study April 7, 1942 revised completely looped and economically powered Main Line System with less Economic Production-Transmission Expe nditures 16003 © 232, Michigan Gas Transmission Corporation Computation Sof Average Return Earned on Net Investment for the period March 1, 1936 to December 31,1941... 14008 233, Prospectus Panhandle Eastern Pipe Line ( Company. $10,000,000 First Mortgage and First ‘Lien 3° Bonds: . Series C, due January 1, 1962, and 150,000 shares 5.60°; Leetiatiice Preferred Stock, —— from 16009 Paget... : ‘ ; 16009 Pages 3 to 8, Appligation of Proce eeds, ete. 16011 co: Pages 11 to 18, Certain Proposed Acquisitions, ete. "46019 "Page 16, Letter to Board of Directors, November.J3, L941 16024 Page 66, Notes to Balance Sheets . 7”. 16075 | - @ Page 69, Notes to Income Account. 16078 — 234, Surumary of Construction and Retirement Budget and Work Order Procedure. ; 14095 ’ 235,.Panhandle Eastern Pipe Line Company and Subsidiary _Conipanies Statement showing the Computation of De: " preciation for Federal Income Tax Purposes for the fear 1939 as claimed in Federal Inc ome Returns... 16097 236, Panhandle Eastern Pipe Li ine ‘Company ani.Subsidiary Companies Statement showing the Computation of De-, preciation for Fede ral Income Tax Purposes for the year. 1939 on the basis as settled. with .the . Bureaueof* Internal - Rewenue.....- : ; 16005 237, Panhandle Eastern Pipe Line Company and Subsidiary Companies Statement showing the Computation: of De- preciation for Federal Incorte Tax Purposes for the year 1940 as claimed in Federal Incoine Tax Return... - ... 16099 238, Panhan lle Eastern Pipe Line Corfpany and Subsidiary, ~' Companies Statement showing the Computation of De preciation for.Federal Income Tax purposes for the year 1940 on the basis as settled with the Bureau of Internal : Revenue............ ee ie 16100 RK : Original Print 5845. 5407 9 ; - Pacha ‘ 3 : * “ = ‘, . ; : “Original Print: 3 243, Panhandle Eastern Pipe Line Cc ompany and Subsi linty ‘Companies Statement of Estimated Federal Income and a / Excess Profits Taxes for the 12 months ended Februaryg, ..° -a° * 28, 1942 (based on Revenue Act of 1941; pitkags .. 16105 5911 ‘ou, Panhandle Eastern Pipe Line C ompany 2 an: nd SiBsidiary . — To Companies + Statément of Budget. Items inc lauded in e . Exhibit No. 205.. ‘ WHOS 5917 245, Agreement between Cohwabia Gas. & Electric Corpora- tion and Panhandle Easrern Pipe Line Cc a dated “ia Febryary 5° 1942..... ev ugh i 16110 5421 Ps vige "246, BRanhandle Eastern Pipe Lise Company aa Subsidis — Ss . Companies preliminary Deterinination of the second In. °° “4 - stallment of Purchase Pricé to be paid to Columbia Gas ~~ . : ae, & Electric Corporation, computed in accordance with - 6 .-* + Pravisions (Paragraph C) of the Agree ment between E % ie os Columbia Gas and Eler¢trie Corporation and Panhandle 2 . ° Eastern Pipe Line Cothpany dated Febraary 5, 1942 - 16923 §932 - " = 247, Panhandle Eastern Pipe Line Company and Subsi: liary , & ‘ompanies Statement showing Certain Increased Costs not fully Present in Income’ Account (Exhibjt 195 -an! ae 196) for the year IM41__.- Me . “TAIZT +5933 248, Panhandle Eastern Pipe Line, ( ‘ompany and Subsid lafy ~*~ J Cénipanies pro forma Consolidated Incume Account for the year ended December 31, 1941 - 4 Wil25 5035 i 2, Panhandle Eastern Pipe Line Company and Subsi: lary iota - Companies pro fortua Consolidated Leceome Account for. nie Sew . the year ended, December 31, 1941 Note A), cas aljuste:i : a to give effect to Federal Ineome and Fede ral Excess : ; x - Profits Tax Rates proposed in Recommen lation of Secre tary of Treasury Morgenthau on Mare bS iPt2 before. * . House Ways and Means Commutice, “WQS 5030 250, Panhandle Eastern Pipe Line Company ani! i Sub sidiary -. : Companies Statement of Rate C ase Expe nses itr Conner. AER a tion with, Federal Power © onunission Conseli lated! ie -, _—— * Dockets G-200 ahd G-207 including actual. cost to Febru. he pa ne re ary 2k, 1942 and Estimated C oat te comple “aS 16431 6042 --° °, =¥ | 250-A, Panhandle Eaafern Pipe Line Company an® Su ree = sidiary Companies Statement of-Rate Case Expenses iv.“ ge Connection with Federal Power C ‘piamission ( ‘onsolidated : nis Dockets G-200 and G-207 including actual Cost to Febru = ; ary 28, 1942 and Estimated Cost toyomplete - ISLRIA 543 251, Panhandie Eastern Pipe Line ¢ Tiny np ap Subsisiary ae \ Compdaies Statement showing prafforma Consolidated ie Net Operating Revenue as adjusted for a full Ye ‘ar's Cost : * 4 (Note A) as allocated between regulated and nomre Lug. ¢ 5 * Tated Sales for the year ended December 31, 1941... ltsst° SOT * \ an, Panhandle Eastern Pipe Line Company and Subsidiary io Companies Additional Information Teque Sted ‘in re Ex- ae ; i! { hibit No. 17 LGISS 6 54656 } ‘ 253, Study relativé to Minimum Return ecules ments of. : f ‘ Panhandle Eastern Pipe Lin¢é Company ‘giving E flect to. *. | - | Property Acquisitions) prepared by Paul B. Coffman 1145 S46] ; Chart No. 4, Condensed Actual and pro forma Balanve -* ‘ “4° Sheets of Panhandle Eastern ng Line C ompany asof oa . December 31, 1941 ve fies ~ 16140 5967 ie) : Ghart No. 3, Pr die nt Earfed on Invested, ( ‘apital of Pan- & Sale “Index Volume XIV. _ ee Print - Chart No. 2, Trend of Revenue and E xpenses of Panhatidie Eastern Ripe Line Company from-1982 to 1947 and pro - forma.. os 7 “w handle based uporw Net Gas Plant =“ Working ¢ ‘pital - from 1932 to 194) _ lola. Chart No. 4, Percent Earned on lnvesied C ‘apital of Pan- : handle based upor Capital Structure from 1932 to IML. 16152 Chart No. 5, Return te Common Stockholders of. Pan- hafidle Eastern Pipe Line Company from 1932 to 1941 16158 Chart No. 6, Pervent Earned gn Invested Capital of Pan- hatidle pro forma fer i2 Months ended February 28, 1942 16154 Chart No. 7, Percent Earned en Invested Capital of Pan- ‘handle proforma for 12 Months ended February 28, 1942 46155 ‘Chart No. 8, Working ¢ ‘apital of Panhandle Fastern Pipe -- Line Company is being Reinvested in Fixed Assets 161567 Chart No. 9, Effect. of Sinking Bund and Maturity Pre- Visions of Debt and Pre ferre d Stock of Panhandle Kast: ern Pipe i ine CG FE Pare seer 16157 - SUs3 _ ( a No. 10,* Investors’ Appraisal uf Overaii Capital Risks i in Various Divisions of the U tility Industry from 4937 to’ a : ; 1615s Chart No. Investors’ Appraisal of Overall Capital tisks 133 Sh le Industrial Companies . > ise hart No. 12, Panhandle Eastern Pipe Line “‘Conapary— invested Capitatas of Fe ‘bruary 2s, 1942 , > W6o -Chart No! 13, Cost of Financing | ‘anhandle Eastern I’ ipe. ‘ ‘Line’ Com-any First Lten- and. birpt Mortgage Series. “C"'-S: PF. 3's-dug January 1, 1952 A *. 16tel Cliart No. 14, Historical Costs of Debt Capital of Pan handle Eastern Pipe Line C ‘ompany frotn 1930 te 1942 LEM 2 Chart No. 15, Cogt.of Financing Panhandle Eastern Pipe Line Company 560°; Preferred Stock. 20.000 5° 16s" Chart No. 6, Mistorical ‘osts of Preferred Stock C apital - of Panhandle Eastern Pipe Line Compariy from 1936 to * 1942"... . ompaniés s eh i from January aL 1934 to December 31, 1941 Chart No. 35, Y idk ison 1 Ne w Security ‘Tgsues of Naturat,, Gas Companies avcording: to’ Quality Rating, from . 1936 to 1940 ° Chart No. 36, ‘Ideal Rarnings ane rage Ratios for High Grade (A Group) Natural Gas-Company Bods “on poe N Le 3F, Debt C overage Ratios fork | Paso Nati iral oh . Gas € ompany Actual ani A ‘usted to a 61) 2% Rate of Return. . Charct_No. s..,Debt Coverage ‘Ratios for Northe rh Natural Gas Ci ompany Ac tual and| Adjusted toabl/2", Rate of Return , Chart No. 39, Debt Covdtize Ratios for Sovithes Tn Natural Gas C ompany Ac tual and Adjusted toa 6122 Rare of Return” : Chert-No. 405 Debt Coverage Ratios for C ities Service “Gas Cotonany Ae tual:and ‘Ne sete toa 6127 Ratt . of Return Chart - No. 41, Debt Pubiocas Ratios for Mississippi River Ful Corvoration Actual ‘and sind toca 6-1,2°. Rate of Return Chart No. 32, Debt Coverage Ratios for Natural Gas Companies Adjusted to 6-1/2", Return on Net Property and Working Capital... ‘ 16174 © 6017 16175 6019 ti, 16176 6021 . ‘ 16177» 6023 16I78 * 6025 ne 16179 6027 16180 6029 IGINL §=660BL 8 “16182 6033S iiss § 60aF 1GI84 037 LGISS = 6039 16186 GOAL 16187 O43 e 16188 ° 6045 i61RB— 6047 16190 HO49 :~ ugh Stow ks 158 Stable Inglustrial ‘ ect aac y - . . ev , ” * ® ° Bagel: Debt Coverage Ratios of Panhandle Rasts ern Pipe. Line women. at Various Lev rele of Net Operating Revenue. : Chart No. 44, Debt Coverage, » Ratios of Panhandle Haust- ern Pipe--Line Company at Various ‘ Levels of Net (perating Revenue. ; ri Chart No. 45, Effect of. Tne reased Cross Res yrénue and Taxes upgn Panhandle’s Net Ope rating Revenue Chart No. 46, Calculation to show Rate of Return Neces- _ sary to Produc € $5,382,677 — Assuming Various Rate Bases... ' - Tables supperting Ve arious © harts : ane, 254, Investors’ Appraisal of ‘the Risks of Capital in th3" Stable Industrial Compspies for the vears 1937 to 1041, inclusive, prepared by Paul B.-Coffman - ; Sa 8 Common ‘Stocks were Listed on the New York Stock Lixchange front January 1, 1932 to April 1, 1942, ete * Section H, Summary showing Compntation of ‘Investors’ Appraisal ‘of the Risks of C apital represented by 153 Stable Industrial C ompanies’ ¢ ‘Section LIL, Working Papers showing the 4 ‘omputafion of ‘Investors’ Appraisal of the Risks of Capital’ of each of the “153 Stable Induccrial Companies . Index, Volume XV. and XVI. Section IV, Workigg Papers showing the-Conutputatjon of ‘Lowestors' pine pe of the Risks of Capital’ im the Natural Gas Industry as compated with other Divisions of the Utility Industry for the fall Year 194i, ete 255, Letter of Panhandle Eastern Pipe Line Company dated April 11, 19°? to Mr. Park Chamberlain, swtd-Tabulation f C ‘omparacive Statement of De mand ( Farge so under Original and Supplemental Contracts, Panhan le Eastern Pipe Line Company and wscicnr sar Consolidated, Gas Company for Detroit. 25, Letter Agreement between ( ‘sdeedih a Oi & Gasoline ’ Corporation, National City Company: and Missouri” Kansas Pipe Line Company, dated September 19, 1930 and Contract dated September 17, 1930. ., 257, Panhandle Eastern Pipe Line Company and Subsidiary . Companies Reconcilemnent of Net Income per books with * Estimated Fxeess Profits Net Income for the year 194] 258, Holding Company Act’ Release No. 3415 dates April &, 1942, Findings and Opinion of the Securitiessand Exchange “Commission in the Matter of Columbia Gifs & Electric Corporation, File Nos. 59-33, ete. : Order requiring Divestiture pursifant to Section 11 (b) (1) and Redistritution of Voting Power pursuant bo Sertion 11 (b) (2) 4 _ 254, Weightell Average Parninys ~ Price Ratios on Com- ae RS Original, Print H6191, 16192 IH1Y3 16104 6196. W242” Section I, Complete List of Industrial Companies whose — 124 1250 1254 rT 30. £582 1B585 1H595- i509 Lindy te Uae . HO55 HOS] 6053 6057 . HO] eS O77 OS34 Os3a BSS HSOb OmMOS $e? 3 Ty gc 7 . - - 260, Panhandle Eastern Pipe Line. Company Status of Pro- _ posed 1942 Construction Program, Productiofr almsGiath- ering System South and West of Liberal Station 261, Panhandle Eastern Pipe Line Company and Subsidiary Companies Main Line System Approximate Coinc idental _ Maximum Day Sales during the Wynter Periods of 1940- 1941 and 1a4l 1942. Original! Print 16609. BRAK ‘16612 >. 6871 262, Panhandle Eastern Pipe Lige-Company und its Sub- 2 sithiary Coftipanies Loan eater Custymers Curtailment - Coe — January 412, 1942.. 16617 SSE & Panhandle Hastern ‘Pipe Line Cojupany and Subs tdiaries Allocation of Adjusted 1941 Costs be ‘tween Regu- lated and Non-re ‘gulated Sales x 1881S . 6883 204, Index of Gas Rate Sehedule of Llinois Natural Cas Company, Michigan Gas “Transmission Corporation and . Panhandle .Pastern Pipe Line Company. iei21 68807 Schedule 12, Gas Contract between Panhandle Kastern "Pipe Line Company and Detroit City Gas Company, , August’31; 1935 ‘ 7 1 6889 Supplement 2 of Schedule 2, Supplemental Gas Con, . tract between Panhandie Lastern Piye Line Com pany and Detroit © ‘ty Gas Company, June 2, 1936 1 6820 ’ 206, Financial Statement of {ndiana Gas Distribution Cor : poration fyr Period ended December 31, 1941. ies = 6929 267, Panhandle basterPipe Ling! company and Subsicliaery " Companies Comparative Balance Sheets. — per books, , Comparative Earnings Summary — per books, Adjusted Earnipzdgs Sumtuary and Gas Plant per books as of March 1, 1941, and Mareh 31, 1942 LwiTh | B93 Complaint of City vf Detroit and County of W ayne, Com plainants v. Panhandle Eastern. Pipe Line Company and ‘Mic higan Gae Transmission © orpory ation, Defendants, filed Februar 2s, Isl, Federal Power Corrininesn n, Docket No. G20 : Lose” TOUR Separate Answer ot Mich ican Gas Transnussion Corpo ation filed March 28, 141 in Docket Noo G 200 0. "16893 7008 Petition of ‘Michigan’ Public Service Conunission for Leave & to intervetie filed March #1, 1941 in Federal Power Com. - mission, Docket No. G- 200, rarer eas - }ewias * TOLL separate Answe r of Panhandle Eastern Pipe Line Cotnupany * ne filed April 3, 1941 in Federal Power Conunission, Docket No. G-200 IA705 TOMS Order entered June 10, 1941 fixing date of Heartny in Fe lerss “ Power . 8 oOmimiseton, Dus ket Noo Gr 200 16715 ° 7022 . Order entered ‘June’ 10, 1941 persatting the’ Mic higan. Publie * Service Commission té intervene.in Federal Power Cor so nussion, Docket No. G-200 Es a GTS TAS ‘Petition of Panhandle Easte rn Pipe Line ¢ ‘ompaiy tiled June ° 26, 1941 for Continuance of Hearing in Do Ket No. G-200. i8720 0 7025 ‘Cone urring Petition of Mi Vinan (ous Pranamission Corpora: tion tiled dusty 2, it¢l for ‘ ontinuan ‘ec of Hearing 1n Docket No. G-200 Pen a lo72s = 7030 , 4 ; me Original *Print Objection of City of Netroit-and County of Wayne to Defend- —-ant’s Petition for C ontinuance of Hearing filed July 3; 194] t in Docket No. 6-200 | , 16733 7032 Federal Power € ommission’s Designation of Trial Examiner 16736 7034 Order entered July 8, 1041 denying Petitions for Continuance — * of Hearing in Docket No.G-200.0 0... 16737 7034., i Petition ‘of Michigan Consolidated Gas C omiany’ tor bea ; _ to intervene filed July 10, M411 in Docket No. G -200........ 16739 7035 Petition:of Intervention 18744-7088 a entered July 121941 permitting Mic biiekn t ili Aehad : : ; Gas Company to intervene in Docket No .G-200 eee . 16755 7046 ¢ ‘Angwer of Siichigan Gas Transmission orporation ta Peti tion of Intervenor, Mic higan C onsoli: lated Gas C ‘ompany = 16757 > 70A7 Angwer of Panhandle Eastern Pipe Line Company te Petition ; ; é ‘of Mic higan. Consolidated Gas Company, Intervenor, filed : ¢ August 18, 1941 in Docket No G-200 | T6762 7051” , Motion-to Dismiss filed by.Panhandle Eastern Pipe Line . -’ . Company on August 20, 1947 in Docket No. G-200 ; 16771 7058 rn to Dismiss filed by Michigan * Gas Transmission _ ‘Corporation on August 21, 1941 in Dacket No. G-200-: 16773 7059 Order of Federal Power Commission@ienying Motions to ay Dismiss of Panhandle Eastern Pipe Line C ampariy and» > Michigan Gas Transmission Cc ‘orporation 16775 ° 7060 ° Order of Federal Powe “f Commission entered May 22, 1941 ; instituting Investigation in Dov ket No. G-207 € 16776. 7061 - Order’of Federal Power Commission entered Se ptember 2, Dats { 1941 ponsélidating Proceedings for Purposes of Heuring, : ‘i DiGrets Nos G-200 and ()-207 . 16779 7064 Petition of Panhaniile Eastern Pipe Line Company ae ; February 4, 142 for Continuance of Hearing —— - _ 16799 TOKS Objection of City of Detroit. and County of Wayne filed February 11, 1942 to petition for Continuance of Hearing = 16809 7076 Order of Federal Power Comunission entered February 17, - + 1942 denying Petition for’‘Continuance and Changing Place : . of Hearing, in Dockets Nos £5200 and G 207 ‘ «16811 7072 Petition for C ene of Hearing filed by Panhandle Fy ‘ast- ais ern Pipe Line Cotipany and Michigan Gas Transmission y Corporation on February 28, #942. ©. aS, ne » 16814: 7073. Exhibit A, Liinitation Order L-31 to curtail © onsutiption ‘ § of Natural Gas 168230 7079 oe . "Exhibit A, Areas subject te Prohits itions container in Paragraph ‘e) of Limitation Orde r 13) . I6n2s Order of Federal Power Commission entered March. 26, 1942 enlarging Investigation «ol m aking Ilinois Natural Gas * Company a Party Responde nt’ jn Proceeding De ‘signated ; Docket No: (,-207 . mS : 16834" 7088. . uMotion of Counsel for Federal Powe rc pewaniieatins filed April ‘27, 1942 praying that the Federal Power Comission enter . an imntediate Order fixing just and reasonable Rates...» 16839 7091 Motion filed ‘by Michiran Consolidated Ga Company ‘on April 27, 1942 praying that the Federal -Power Commission enter an immediate Order-reducing Rates. -: ‘fain frers cas Oe FOR r : - , ; ‘ ee, ate ; Original Print “Motion filed by City of Detroit and County of Wayne on April 27, 1942 praying that the Federal Power Commission enger - an immediate Order reducing Rates _ ‘ -.. 16853 7100 ‘* Amendment to Motion for Order reducing Rates filed by ae tee ie Michigan Consolidated Gas C ompany on April 28,1943. 16860) 7104-- - . : Statement relating to Exe O88 Return for vear 1941 and Re- : 4 duction of Grogs Reve nues req: tired to eliminate Excess. : Return... 16865 7107 Excess Return for year 1941, heforg Adjustment of Claim for Replacements. ee / 16866. 7107 Rate Base for year: | Se a nat 16867) 7100. Income Staten at — year 1941 re 16868 7111; | |. Amortization of Investment... ; ‘ J6871 7144 : - -Annual Accrual Kate for Amortization .of Property as of : i June 30,1041 ee a 16872 7115 ‘ Annuat Accrual for Amortization of Property at June 30, a : 1041 ' . 16873-7116 % Depletion | seeks 16874 -7116° + “Excess Return for year 1941 ; : tases ces SE FEE 4 Rate Base for year M1. Essien ese af Parihardle Eastern Pipe Line Company, Michigan - Gas Transmission © orporation and Jlli nos Natural Gas » Company ‘filed October 23, 1942 for stay of the Federal iy bane / Power Commission's order‘of September 23, 1042 2 | 16040 7138 si .. — of Panhandle Eastern Pipe Line Company, Michigan age i? ; Gas ‘Transinission Corperation . and Iiinois Natural Gas 3 ; Company filed October 23, 1942 requesting a rehearing | y. ae » t “Dockets Nos. .G+200 and G-207. ' 16044 7i41 Order of Federal Power Commission. of Octo ae 30, 1942 os j denying Petitions for Rehearing and for Stay in Dockets . aj Nos, Ga aad G-207.. : Saks mais - 16054 7150 © ee. pee YX | i — os . Cc crtificate to Transcript of Federal Power Commission. . . 16955 Order of United States Circuit Court of Appeals directing Respondents to Show Cause w hy Petition for Stay of Rate Order should nat be granted: 5 "16086 Order of United” States Circuit Court of Appeais denying Petition for Stay of Operation of Rate Order without prejudice, etc..... a . 16087 Oz ler of United States Cire “init Court of Appeals granting’ Stay-pending further hearing of application therefor 16988 _ Order of United States Circuit Court of ypeals granting . Stay of Order of Federal Power Commissioh dated Séptem-. ber 23, 1942, requiring reduction in rates and c harges for gas furnished by Petitioners, etc. . > 16089 - Order. of United States Circuit Court of Appeals appdinting John G. Hughes as Custodian of Funds to be impounded: under provisions of Stay Order... td 16991 Order of United States C ircui€ Court of Rapeads as to form— of record to be = and fixing time for filing desigaations ee a ee ae 16992 : - Order of United States Cireuit C ourt of Appeals lente ting Cc ustodian as to manner a — fundand securities in his possession , 16993 - Order of F nite States Ci ire uit Court of Appeals authorizing - Custodian to purchase certain securities as Inve stments ° 16005 Order of United States Circuit Court: of Appeals directing Petitioners to pay to Crstodian certain sums to cover Bond premium, ete. 2 16907 Order of United Statés Cireuit Court of Appeals reguiring wate - Custodian to sét up Aveoant No. 1 anil Ac count No. 2, ete. - 16909 > Order of United States Cireuit Court of - Appe als authorizing Custodian to purckgse Certain securitied, ete! : 1700) Stipulation that coloting matter appearing on certain Ex. hibits may be omitted — copies inserted in printed, record, ete. gene * 17003 a : 3 ni Opinion, Laaieeberrouit Court of Appeals . ‘ 7203 : * - * - . ‘ oe OO" > Judgment, U.S. Circuit Court af Sppeals + bc tin i ‘ : “tgs ~ DON Clerk's Certifieate #0 Transeript ; "°° tee a ee Pe : : Ae pe ie aay: tender allowing vertior “* pe ’ 54 te bad . “Original Print 7151 : 7179 7180 . 7185 7186 7187 - © \ 7 , ho ° ; « . : . ; Pri nate tog gs A. My estimate contemplates no direct industrial sales ‘by Panhandle Eastern. . Of course, that is a matter of dis- cretion to.the inatiagement in vears to come; but; as regards this particular estimate we are speaking of, and as far as [ have anything-to do wjth it, why, it has‘been prepated on ‘{fol. 8208] the basis of sales. just as they are Now being made. - ©. 'Q. Are all of those sales presently contraeted for and being made to persons who are being served? A:* T wonld sav that this estimate of mine, like ‘all of Any estimates that. T have: made hare, contemph: ites: Some new customers but 95 pe reent Of it is toe usfomers who aré how connected. Q. You cannot give us the cmaumes of the. new: customers ? *, A. I eannot. ; Q. By the term **customers’’; av you have used it, ‘are. you referring to. the industrial customers or to the dis- trilgiting company? ‘ ; A. I mean beth. I-think that there will be : an inerease in - the individual eustomers -purchasing from: distributing companies. over the years, and] think also my estimate ge ates possibly’ the addition of another: (listributor rtwo. | rege . q a iat | ’ : ‘You-see, vou ¢annet be too definite about these’ estimates ..Q. «1 do not.recall whether 1 asked: vou for the page numbers of vour working papers? = ¢ A. No, voualid not, on that particular estimate that Wwe? are discussing: an@ work sheet No.5 covers all of the details. that I have. : ’ ; . -Q. And you will submit work sheet No.5 along with the others? . - * “4 , [fol..3209] A. Yes, sir. 6512466" o 2 e a. \.- - Now, will vou please e¢ plain the method used by you im arriving at thie estimate shown in Lines 13 and 14 for “Indiana and Ohiv-Other (Ine Juding Compuny Use)’?? “A. Yes, that estimate covers all of the sales that a] “estimate will he made in. Endiana and Ohio, outside of the industrial which we have just been discussing: . - ? . ‘ That sale comprises the domestic and commercial: sales, principally, of distributors throughout the State of Widiana — and @ very, very small sale in the State of Ohio; so small ‘as hot to merif any e xtende d discussion, © That ‘figure, as \ say, Is ‘sdeaont entirely a sale of domestic- commercial “to distributers in) Indianay namely, —Pabtte— Service Company oof Indiana, Nérthkern Tudiana Public Service Company, ‘Central Tndiana dias Company, -Indiana’ Gas. Distribution Corporation and Kokomo Gas & Fuel - Company. -..> - “eae ee Now, that estimate,vou will notice, increases, ve ry slowly P Lrom Vear to vear. At the _— Se nt time, it is running about —DHOO,000 Moe. fey pep 6 bere M. . as 7 ry /> ° = oo ° ; ® } ees : bd * ~ . : 3 - rs e ’ ” Ty UM OOO), l estimate : a. oy one pene : (). (Interpesing ) Just aiminutes Five bilhon— = : mi Acris Rive million, two hundred thousand, Ea! ¥ a, Aol te ae ie . a om, “hank vou. She ae re I estimated for 1942 .an mesa te vrai aa : 6,409,000 M. [ fol. S210). 6,800,000 Mo eef., 720000, ay Q. That is-aflat Increase of- ; : A. . (Interposing) 400,000 Moe. tf per-evear, a rather eradual, nominal increase. . That’ is based upon the. fact Ahat | do cnot.see any great expansion of natural-gas eon: Sauption Th Indiana for domestic commercial * Hse in the near future. : a, : Ido not contemplate any addition of any large number af customers, but just a slow, gradual growth of the pres- cently connected enstomers, and possibly avery. slight in c ve: Ase iy new custome rs. : Q. Are those sales all co ntem plated: to be made hy the 7 present distributing companies? + cs A. Almost in their entire ‘ty. The ‘patiiedite ‘prohi ibly. in- eludes, and undoubtedly does inelude, One or two, small a . Seeger meme ‘ 6. eee eee distributors not ‘now connected te the. line who will Sub. sesjuently be connected, Q). And will vou name those? . & I think now: peri of the’ Greentie id Gias Com pany. J Q. Any others ?: | A. At the time the estimate was naib J .had in mind also Richmoml Gas Company. Since the ‘estimate was od ° 5 ° made, Richmond Gas Company. has. come on te the: lines » and is now taking gas. No, L-cannot name, spec ‘ifically, any more, but, un » [fol 3211] doubtedly, there will be, as the years go by, some small distributors not now taking gas w ho will begin taking vas shortly. : 3 & tn other words, this estimate of “Other Indiana and Ohio’? shown in Lines 13 and 14 did not contemplate an very large new territory? A. That is correct, Trial Examiner: May l ask whither that: is, in part at, least; due to the fact that the States of Indiana and Ohio, - or these portions of those States, rathér, adjacent to vour lines and the line of the affiliate as well as Panhandle Fast / ern, are presently served from local fields ? The Witness: No, this did’ net contemplate that fact. This estimate contemplated the fact, T might say, that-most ~of the eustomers who are within econemic reach of our lines through those states are Now taking gas from us. I beiieve the. local areas te which vou refer are, in a iInstunces, too far away trom One lines to be se erved by us anvway., : : By Mr. L ittman: Q:> Before going to the next item, I would liké to. ge back. for a moment to the industrials in. Indiana and Ohio, ° - the: estimate for whieh i is “shown in Lines 11 and 12: What Ohio territory is embrace d by your estimate of thre rw al? ciate . ‘ There isn't hy of that outiaeate for industrial: ‘gas +f) 321 } contemplated ror: Ohio. .: > Q. Now, do vou have working papers in support of vour estimates shoes in Lines 13 and 14 for other than. indus- trial i in Indiana and, Ohjo? A. Yes. : ‘@ © 4x - a * ie x ee, : te haos ke 1028 © ae ee a > YY W hint ate the page Demberst: A. Work: ‘sheet No. 6 covers that. ).° Aud you will submit that pase along, with the others? | will he glad to do so. Q. -Now, will vou please txplain your estimate: ‘divin “in Lines 15 and 16 for Kentucky Natural Gas Company? AL We made a eontract with Kentucky | Natural Gas_ Company in the summer 6f 1941. The contract is dated ‘June 27. The minimum provisions of that cofitr act call for their taking 1, oy M. ¢. f. per vear for the first. three vears, 2,900,000 M. ©, ~ for the next two years, W hich takes us through 19da: iis ~ _¢ There was existe nt at the time of the exeention of this’ contract what we call a deficieney, a certain amount of gas ‘which they were supposed to have taken but had not Alone so under the minimum provisicms of ace rtain contraét. They oan in ‘othe 7 words, 140 — cubic feet short of. - thei ir contracted: takes, so, in arriving at the Ke utucky Nat- ural estimate, | was’able to follow what I thought was a most logical precedure. Timerely used the minimum stated in the existing contract, and ladded to it the shortage Ww hich [fol 8213] they had left over frou other vears, and spread if over a peasonable length of time of about two vears. —_" = ‘Phat if about all of the supporting data -that fhe esti-: ” tater h ‘for the estimat? oh Kentucky } Natural Gas Com. pany, and I nught add that I think that 1 is at that was . needed: oi ; re ; Q. What Was the basis, of your determination of the maximum day shown i Line AG for Renterky Natural Gas Company! ° oa . ats A. By Kernow ing, ‘as L deo, thijit. the \ have some ve ry good operators Who are atteriipting to take this gas on an even “basis, day to day basis, and after watching the deliveries ‘through our connection with them ard confirming: this, «I felt quite assured that they* would be able to maintain av “exeellent load factorthrough that connection; not LOO per- cent, beeausé that is“alnrost. impossible ‘of attainment due to fluctuations of pressure in the line, but | estimated that ’ _ they would be able to maintain. a 97 percent load factay, that, is to say, that their ma .immm day-would not exceed their average day by mere than 10 percent. ‘ Ny - _ indirect since April, 1939. -Our records -are. very coniplete.. ; 1029 "4 Q. Do yeu know w hether ‘the contract with. Kentucky, “Natural Gas calls for a uniform take? i ' A. The contract does not call for a uniform take, as I recall it. It says nothing about. their Yaking uniformly, Dhey are on.a two-part rate, so it is to their interest ‘to take ‘on_a uniform basis. Q. Do you have wrething papers to. support. your estimate? “ 7 ‘ {fol. 3214] A. Work sheet No: 7 supports this ev. ridence. Q. You will submit that along with the others? A... Yes,-sir. + © .°% Q.. Now, that takes us “to the group that. youj have— s? classified as ‘*‘West*of Dana.’’ First, under. this class, is industrial shown in Line .20. Wilk vou ‘please explain: the’ _ estimate for that class which | have just named and which appears in‘Lines 20 and 21 of your Exhibit-40? A. .The average figure over the years _ rather sub- ‘stantial, averaging about 14. million M. ec. f. under -this sips classification. -Much of the gas we sell west oi Dana, and when I say “we? this time, TI am really over in our own territory, in the Panhandle Eastern territory aiid Illinois’ Natural Gas oe, , ee . ‘Much of the/zas, as | was saying, that is sold over here is sold directly by. us to industries. . It comessright out of - our line and goes-right ty the brick plant or the industry, ‘whatever it may he, and we bill the customer directly for it. 9 About five-eigliths of. € is. sold to’ “Other Distributors wha, in turn, resell it to industries. The werk sheet which is, by the way, No. 8, indicates the ‘history, by months, of these sales to industries direct and We could have. carried: it back to "1936; but we thought that (fol. 3215] would be enough history upon which to base the future estimate, so the work sheet shows the details from — 1939, by months, — Tt indicates that for 1940, the sale was 1) billion; it indicates that for 1941 and we had‘six months actual and - we used Six. months estimated, will be wbout 14 billion. w e next xo to work sheet No. 9 , Which is also a part of this estimate, “showing the estimate’ for the future and oo / %. _—-- Sr ‘ ry there, + ‘hate shown “on that work sheet that the sales for. 1944 will bee 15 billion ; $942—14 pillion; 1943—-14 billion 300 yiillion, attd so on, with a very sgrallaal air ase over Se. the years. Cruse : “eo : I have not. ostinited any great increases in, that nye ‘tery, on the theofy that We are noW serving aldunal all the inarket that is available, to natural gas pipe line. -Q. 1 note that yout havi een increase of one million’ Me ef. iy. 1942 over your 1941 estimate, w hereas,. in sulise~ “quent oe ‘through to 1946; vour increases are approxi- “mately if tr five himdred ‘thousand M. c.f. Can you explain thi YF ' aeet “A. Dean. The rate of increase at present 7 sufficient . tuation? to jastify, in uiy-judgment,.an increase of one million M. , 2 ‘ . - \ . c.f. begveen 1941 and 1942. Past history supports that. Now, as for the future, I do not see anywhere in the .. territory’ justification for assaminghat the rate of ins crease Wil be as. rapid as it has been in the past. ‘The ‘refore, the ine rease ot 1943 ever 1942 will be con- viderab ly less than 1942 oyer 1941. Its just a matter of = | fot 216) having the business there. ~Q. Are. the, sales’ ‘shown in Lines 20 and 21 to the in- dustrialy west of Dana. for all of the vears shown.in- Ex- hibat 40, sales to presently cornected cabclises or, does your estimate. iia a sales to othergepstomers as well? | we ; ~ A. . Almost jn their, ‘ealivety, I would say us much as’ 5‘ percent ure ty he made to prese ‘tly connected custo- og mers. You can see that the imereases, as I have, shown. “down through the vears, are very modest: , . \ t Therefore,: vou would naturally judge from this that thore isn’t xoing to be a great increase Ne thie number at new customers. . EF suspect, sitting here studyinig this esti- ‘mate, that it ds foo conse rvative. We aaa Qo Will you baad the work papers ‘for this Intter estimate, please; which are, | believe, Nos, S.and 9? ae A. Y&s, T wall be glad: tv. \). "Now, that.leaves one more : ae that is the ide: “tie and cammercial sales west of Dana shown in Lines, 22 sand 23, Will you please explain the method followed by you’ in arriving at these estimates ? i ° -a OT ates. & - . : ace oe 1031 A. That isa sienmnalliea estimate. to the one that we have just Kscussed. We talked about the industrial west of Dana and now we come to ihe domesticand cominercial - sales west of Daya on the system, of Panhandie. Eastern | Wand Flinois Natural Gais Company, main line only. ' fol. 3217] ‘© have’ in ¥ votes and TI shew: here on the “work sheet, which is the salgs which we made te that class of bysiness os 189, and pado, and it is noted that the growth per year ® ‘about 500,009 M. ec. f. T ~ do nof see, ahead of us in that territoty any rapid. expan-. | sion of our facilities or any large cities to be added other than, I might mention, Bloomington and Normal and Galesburg, IHinois. 2 ° As I say, I do not see any gre: ut. expansion ‘ahead of us, its “so I have merely estimate x flat Merease of appyroxi- mately 500,000 M.c. f. per year. The supporting Statistics ‘are a little more in det dil than: they have been on some: -of those estimates: farther to the east, as you will note from’ the work sheet .No. 16, probabhy due te the ‘fact that we * have at oue finger tips there in the Kansas City. office considerably more data ot the characteristies ‘of these sales than we do-some of the sales farther east. My: work: sheet ° ibbws that I estithate thie éustorrere to increase from 145,000, which they are “approximately at this time— +. a a ie 3 Mr. Culton: - *( lnterposing) You mean the es . of the distributing company?" SSA 2 The Witness =: The éustpmers of the distributing cony a panies. From 140,000, instead of 145,000, from 140,006 as. they are at. present to 145,000,5 190,000, 155,000 ard SO ony ittereases of about 5,000 cfgtomers per, year which is. & --pargly “a judgment figure, and I beheve that is all that I . have to. offer unless. you have specific questions, on that.° : {fol. 32 D18] By Mr. Littman: Y). W hat are the work sheets for Lines 22 and 931 f ~Y A. That-is covered. by. work sheet. No. 10. Q Will you ple ‘aseesubmit that along with the others? ‘Yes, sir. ; ig a ge nee a Ref ring to the lin@s which are ‘ed Max- tn in Exhibit 40Hre. the: amounts shown in those lines the ac: : >. . . * 1032 aes Meee Sy eee tual maximum: - day “expected. for each class, ¢ or dee: it - merely represent the contribution expected by each class “on the expected peak day? Which is it? ayer cs A. The-record I am quite sure is clear on that aiid hecanse-of direct examination I testifjed, and I am re- peating again, the maximum days. shown on this estimate ure the contributions of the respegtive Toads to our sy stem. Q. Did you make any estimates of the actual peak loads to” be expecte ‘d for exch class? -¢ ° A. “No, I dealt strictly in ternis of the contributions on ‘our,maximum day. P : , 0. “Naw, do you have ‘any further working papers .in support of your estimate*shown in Exhibit 40 which we, have not called for, Mr. Morton? - A. I made none, These are the, only working papers which I-made, except, ot course, scratch sheets upon which l made additions and threw in the waste basket. {fol. 3219] T purposely. retained them all hecause I knew you ‘would want to have a good, clear record ot what was: done-and how it was done, QQ Now, Mr. Merton, in your judgment as rate en- vineer of Panhandle Eastern Pipe Line Company, do vou ° expect these Sales shown an your Exhibit 40 to he mide, in mre in the. y years 1941 to 1946, inclusive! Pas 9 A ° a es, ‘| do. — ‘ ; ec eae q. And, in your: judgment, this estimate is conserva- tive, is it? ; i, . A. No, am not going to tell you that. This is right on the nose, gs far as I know. It ts not conservative nor is it the opposite. 1 think these are exactly the quantities that with be sold. eee aa ned Of COUT EO, when I say ‘texactly,”’ you, understand what Tt mean: “That this, is exactly’ my estimate but that, of © course, that they may be wrong 5 percent one way or the -other or 10 percent. ~Q Up or down? A. Up or down. tee «): Me. ‘Morton, I believe you testified on direct exam- ‘ination “that vou: had prepared this estimate originally ‘for the purpose of ‘advising: the management of the sales thgt might reasonably be expected @p the next five years. Is that a correct statement? xX yi [fol S221] Q.-. Have vou, at any time, made any estimate | ee ee oe! 1033" . {fol 3220f AV NM reeall very well, and I améglad that yon. _brought‘up that subject. eo et & The inference of the question, although it did: not show ithe record, the accent upon the words when the question was asked me, left the impressiou in my mind that the in- terfegatbr wishtd to know whether we had Warped, this estimate for the purpose of establishing some yoint before this Commission and 1 hastened to add that the estimate had been prepared—I ¢annet recall the exact words —but . I denied that there was anything special about it. _ Now, I-.would like to make a coniplete statement about this: This estimate is made in re sponse to a request from the management to me. ~'Phe management requested me to make this estimate: knowing: that this rate case Was coming ip.” ss ‘They wanted me to set the dures dew un in my own, Way and as honestly as, f could, those were my instructions, to make an honest, straight-forward estimate of the sales for ten years hesamac. they said, ‘* We think we are gorig ‘to need it in this rate ¢ ise* That was the we ay the assiguinent came to me, long - fore . we had made our plans as to what our defense would be in «this ease, at one of the early meetings, ° SO I sat down and. I stagted building up ei estimate for # ten-vear period for use in this rate case. | e of the revenues. expected to he derived from the sales ‘shown im, Exhibit 40? . A. 1 tad no OCCASION | tu, do : sO, and did hot- do so, Q. Have you made any estimate of sales on behalf of the management with respect to future vears. A. I have not had occasion te advise the management except in so, far as 1942 is concerned. I have, within the last few weeks, prepared-ount budget for 1942 of the sales that Weexpect fo make, with the revenues. (). In ether words, you have an estimate of the 1942 revennes? A. Yes,. 1 do have. @. You do not have suc h an estimate fer 1943? A. .- No, I do not. ae oe . —_ ™ 1034 e é . | presume your le estimate. of revenues is predi- 4 eated on your Column DSn Exhibit 465, is it not, or some- a thing cose to it? | A. It Sretty closely approximates Colina i= p. —owane © hibit 40. IWas a little surprised to find.out. how close it } did come, having been made four or five months after this - fol. 8222] one. You understand, don’t you, that if T would - ‘ake another pstimate today if would necessarily be dif- ferent from this one that we are looking at. Trial Examiner: Mr. Morton, may I ask whether the company has maintained an active sales premotion policy aM during receiit: vears throughout the territory served by ‘ Panhandle Eastern? - nae , : ae The Witness: Mr Examiner, that is a question that ; voes to management. Tight just tell you what I think of é it, though, sinee you have asked meé, but I wish you would - please understand that there is alw ays danger in a rate. aie i engineer's testifyyng for the manigement’s palicies, : We maintain, what I pMfsonally think is an active new: i. business policy, That is merefy personal opinion. [think — , that we work hard at getting new business. ee Trial vesbaas: Is.-that true throughout the uniliant i; In other words, do you try to pick up.industrial and eom-. riercial customers wher Ver possible throughout ‘the SVSs- tem ?. ee : The Wittens: Yes, we do. Wa. work at that thing, whether it is on Panhandle Eastern property or some. of ba the distributors? property. “Trial ;Examiner:. So, that, vour-answer to my question would be that vou have maintamed an active giles promo- tion policy in recent years ! The W itness : Yes, sit ir. ou ee w V ? Trial I Xi iminer:; Throughout the system ° | fol.- 3293 | The W ityess > That is iny Opinion. e * “Se « New Trial Examiner:s | was going to simply ask again the ; question that was pele yesterday, whether your estimate of future sales’ contemplates the continuance of an active sale ‘s promotion pee ¥ throughout your system, e - ri x 4F 2 Lissa The W ithess : Yih it certainly dloes. Now, when you tie that to my estimate, @vhy, 1- feel a little bit better than answering to these ‘poliei ies about the company. 8. Trial Examiner: And your estimate contem plates: Ww hat ? you - consider the maximum safe estimate of expansion based on‘a continuance of present policies? vg The Witness: | Yes, it does. Trial Examiner: And it takes into account ‘alae, the |. ability of your company to fill the demand if your estimate: is correct? . ; ‘ The Witness: Yes, it does. ie * .- * ae ae e e \ By Mr. ‘fittman: . U~ Q. Mr. Morton, I believe you said if you were making this estimate today you might Jhave a different result. “Would you expect ‘the: result to vary materially from thet which you show in Exhibit 407 ‘ 7 A. I would not. Some of those years would. be up and {fol. $224] some down, I suspect. IT know sopite of ‘the ac- counts ‘would be up and some, down. Q. But over-all, it would remain more or less the same?” - A. That is true. Q. Now, how did your most recent 1942 estimate com? pare wifh that which is shown in Colin D of Exhibit 402 Was there much variation up or downf' © : oA. There was not ovex.3 pereent variation up or down. “). Was it-up or down? x A, It wasdown. Some saies have not “‘materiatized tis rApidly as [anticipated last August and the r reason is quite apparent. Oar inability to get shipments? pipe is going to delay us bevond the period when I expected that we would he: able to start making these sales up there in M an shown’ on Linés 5, 6, 7, 8, 9, of this study. , \ é ° ’ That “Michigan ‘situation has moved back six aunlics. I , would say, due to out inability ‘to get pipe shipments. ee course, at the time [made this, things looked a good dea rosie r. As Tsay, it was e: irly August: Mr. ¢ ‘ulton: That is “30. faras getting pipe is conce ened! 4 The Witnéss: Yes, sir. 9 - . 3 wae Cae. ¢ aie oa, ge - Mr. Culton: That is what. you mean by *trosy’"? The Witness: Yes, sit, that is what I mean by ‘rosy? — 5 by Mr. Littman: 4). The picture, #1. so far as it concerns. the sales {fol. 3225 | yas still looks abo ft: as rosy today or more -so ” than it did before?. A, It does. Se Sawer ‘ * e -‘@ .* ‘ *. : e . * ; be : [fol. b2grt By Mr. Littnan: SS see Q. L.will ask you this; Mr. Morton: W he ther or not you _ “have at any time prepared any estimate: of revenues: for - the vears 1943, L944, 145 and 1946, or any one of those years? ‘ : A. 1 honestly do not bois whether L have done sp or not. Now, Mere are occasians, as you know, when “requested to makewup this kind of-estimate or that kind of estimate. "Phat is ‘my business, this estimating. e oS I want to say this te you, that ors I is note xistent in my office, nor lave Lmade aiestimate that you conld put along. side of this*one here and compare it with this one. ‘Tn other words, vour quéstion, and I have heard it before, sounds like you would like to know if T have made estimates asa regular routine thing for the management to keep ‘them advised, ita form about like thas, for three or four” Vears— . - , (). (Interpositg )- ‘Setorcine to Exhibit 40? A. Ye s, referring to x shibit 40, for three or four years it ay advance ‘. We de not TALTY sucha thing. We. only work one vear in advance. That is all weneed to work, one year inadvanee. es \- Q. Well, T was not nevessarily re ferring,. Mr. Morton, . te an estimate that you could hay side by side with exhibit No. 40 and. say this is the revenue for this, that or the ae toa a bait 5 has le AICS ih ERE OD AA ARIUS SERN AO . \ a ee - ne Sy ae other class’ Lhad-reference, when I refe rred to the years 1943 to 1946, inclusive, whether you had submitted ANY = estimates to your company of revenues to be expected in those vears from sales to, for ‘exatuple,. Consumers; Power Company or this, that, or the ether company. ~Have you week subinitted such estimates? A. 1 lave submitted estimates to. them covering Green-. field and Bloonsangton and, Galesburg—for-three or four years in advanee,tittte, individual projects like thaf. eee, on this Consumers P ower, I did not make up any other estimate myself on Consunfers. Power, but an estimate certainly was made-up on C onsumers Power and, as you see here; from omens Ww ork sheets in my file. '-T have looked at it. I do not know how. many vears in advance it is. * *.* Te answer your question, [ knew of no estimates that Ihave made around that office for future years for any project except the smaller towns like those I have mentioned. aie : [fol 3229] Q. Mr. Morton, vou could estimate, could you ‘not, the revenues expected to be derived, by Panhandle -Kastern and subsidiary company trom the sales shown in Exhibit 40 based on’ present rate sche dules, could you? A. I could. ° le . * ° *° «€ * {fol. 3230]. Trial Examiner: ‘The Trial Examiner has-sev-, eral times wondered exactly: the \field’ the Defendant. has ° opened up by asking for inclusion in the future rate base the estimated cost of future: vonstruc tion and future hetter- ments. : -sS [fot 3231 }-Mr. ¢ ikon a teedinns r, at the proper time © ‘the Defendans, will not insist that the’ future construction - which will bet required to produce additional volumes of sas is necessary for consideration in determining whether or not the present rates are exe essiy Ja It will insist that the addi sonal, costs required to — duce and transport the same volumes of gas now being produced and -transported ase matters that should be. taken into consideration in detefmining whether .or not the. rates are excessive. . a ce nae PAE Sh te lt es Q. I am asking you just the plain faet whether or not | : that constitutes a double | ‘charge, or arte on: gas con- . sumers for sales promotion. - 3 0s : ee YY 66 12,466 es = : * 10g2- 4 e. Sf - a Z ® 2 ” e . ° cs A. Lhavee xplioned my position ait 1 think’ } mind my “unswer clear tothat question, > : . . . . ® « ° e ** o | fol, 3281 | By Ar. Chamberlain: “S un Now, referring io your Exhibit: 38, you spoke of at- iting to ascertain the Gost of the unaséd capatity in the. main lin® What‘did you mean be that?! - : * AS EL theant. by that, that if my judgment, there was a period during the operating of this pipe line when it, was operating at considerably less than its designed capacity or . the capacity for whieh its [designops] had built it; and that . it cost the eqmpany some out-of pocket money to carry this unused capacity ever. what | hage termed ‘the lean years. _° and ghat these costs; consisting of actual out-of. poeket in- terest, ad valorem taxes and certain operating expenses, i re incurred hecause of sueh unused capacity and I at- culation on five: different methods ag-to What’ those attributable to unused capacity should he. Q. Igt me’ put it this way, or Jet me put a questian this ° way. é the letter which yon directed to Mr. -Nenner and “ hieh you read into ev idence vesterdgt, vow suggested that, in arriving at going value, recognifion should: be givento. the fact that the company had, during its early vears, idle’: capacity, and: now JI quote :4 **which-has been made in ad, tempted in this study, of course, to make ‘a mathe uation oF “3 sts vance of the’ time when it was.to he used because it. was eee BP) ° , + * * ° S.\~ 2 * . bad t ar q. Well, ts it fair’ to say that. you -are approaching it we fromthe standpoint of a distributing electric utility which — is building a large power plant and over-building. for. the present time ‘to take cate of what would be. reasonably an- . ticipated for its future needs? 7 A. Well now, there are somp points of similarity. in the two thongs, but there i is mor¢ flexibility in the ease of. the power plant than, there is* 4 the case of the- thing we -. “are talking about. J «They can expand graduaily as the load comes on. They , tio not have te install all the capac ity needed to carry their ) final load at the outset.’ There is some ‘similarity, ves, but i | fol. 3284].the degree is considerably different, as Tsay. __ ‘ @- - o *. a ‘@ a es @ 7 . " a ° [ fol. 3291 | (): “He: Morton,. what is “the relative capaerty of a pipe line,. let Us SiY- One twice the diameter of the | * other? “4s . ; o” ‘ iy. ty e ° a e © _ * . .* «6 [ fol. 8292 | The Witness: -I think Mr. Chamberlain means: what is the carr ying capac ity at certain pressures or at any given pressure ina pipe line, let us say 2 inches as com- * pared with one having a diamete -r of 4 inches. bad ‘ ‘ Pea aw ries } are AL Yes, there is economy: in building ‘the larger pipe line, of course. eae 2 °.. 3 PY ‘ Q. “You were cussing a rule-ot thumb hase yeiterday, Xow, von know. the rale-of thane by which these .naturdd _ pipe lines have héen projected and. talked abont. What haé been used in the industry as | a} example of the cot of * building apipe line per inch of diameter per mile? A. Tain sure vou are oye raking of the $1,000 per inch of diameter { fol. 3094 | Phat is right. » Then a line ‘ line’ lee * that rule-ef dhamab would cost about $10,000 a ) mite, is s that er « eS “Yes, under fat rule, that is right. & Whereas .a 20- inch Hine: would — about $20,000—a- mile? A.:. Yes. Sete Ss Q. And _ the one would sine, to be very careful, ‘three to igur times the capacity ot the other one, wonld it not? A. Ye es, sIr, correct. © - mee “a . ° a7 py e * oe * *. a e 5 et Oo ’ ; ‘ \ i] Fee i 7 o (tol. 32 95] Q. if you had’: a ‘Sami of 40 million feet of po a day and you w anted. to-build a pipe line with a capacity / Xcess capacity? A., It would depend entirely on what you Gseten to . : muke it, whe ther you wanted to approach it on a straight proportivial basis or on the inerement' cost hasis. There _ dre-arguments both Ways. ° * a a _* Se ae * A. Now, that Tecannot Say because I did not go, as: 1 say, ‘into the individual accounts that/go to thake up this story. | [°just tackled if;from an over-all standpoint. Q. “Don't they have a standalrd: right- of- way for tliese “witural gas pipe lines? A. IT guess Tsound dumb, “bu i dow't know that. ~°.'Q. You do not know that, buf, supposing I put this to vou and see if you know this. w ould it require a wider .Yight-of-way fo lay a 24eine h main than a 16- end main? Ac I do not know. - . “ ~ - ®). © You know you have paralleled your lines in many ; cages On thé same right-of-way that you had to start with? A. I know we:have paralle ‘led the’ ling, all right, but I. ito" not vi cche about. ‘the right- of-way- arrangeme nts. @ ° 4 * a * ihe. 3 oe 7] - . ¢ | fol. 3303] Q.. Now,.1 understood your. testimoriy yéster- | day that vou were attributing-te untised gapacity, let us say just abstractly, a5) percent of the veneral and administra- tive expénse cove ring the lo year r riod.’ Is that in gen- eral right?) = ° > : [fol. 3304]. Tn a cal that j is true, ).° Now, cate “thai state what IT utidérsteed, will vou - State’ again your ‘reason for alloeating that proportion of. “city? is) the gene) ral and adqinistrative expenses to, unused capa- is That ¢ goes back to the entire conception of what the Study. is for. © | “ -, (. You are talking about your study ? of 80 million, what, heirs of the vost would, be for ‘this i fol. 3302] Q. All right. Now,/land rights and land, did: you buy any greater right-of-way than you would have, hed you hid a line of half the capacity? of ‘runming this’ big project could be alloc ated reasonably” [ fol. 3305] to this unused capacity, ‘ Of course, we did ‘not take 50 percent of all of the oper- ating expenses because. we realized Yhat some of them would cause asgood deal of argument if we put ther in here and it would be a little difficult to justify something that,- right on the face of it, had no connection with unused ea pacity, sy We tI pew out Some of b@m bat, in general, that mac fe *s what we did. | Since we had O07 ggreent unused capacity during those. years, PT took oG pervent of certain operating expenses as having been ine ugred on “aevount of keeping in running shape this pr oject. Ee \ (). - Weill, vou ‘took the 50. percents of veneral cand adinin: istrative expe nses, d-vou not? ; ‘ a -—. ae 506) S ae aeat : : (J.,.And that was on the theory that you were staffed with sufficient ‘employees: to operate a plant transporting its full capacity, is that right? A. [-denot know whether that exactly applies or not. I think about all we ‘could say about that is, that since it ap- /. peared that 50 percent of our capacity during those years § =e ‘that score throughout es ; , a « ; 1047 was not being used, then 50 percent of our expense during .. those years was there because of unused capacity. Q. Well now, let’s apply that a little more. concretely. That includes the salary of the president, does it net? A. a undoubtedly that did. " e 7 eo .. ° * *. - * e. ; [fol 83104 Mr. Littman: Mr. Txcéudaie, in accordance ‘with our usual policy of endeavoring to clear up the situa- tion with respect to-exhibits as each witness completes: - his’ testimony, I would like to make a‘statement with re- “spect to the exhibits of Mr. Morton. W e have no astocdina: to Mr. Morten’s Exhibit, No. 40, ‘Estimated Main Line Sales, Years 1941- 1946, Inclusive. We have .no objection to Mr. Morton’s Exhibit No. 41, Which is a chart entitled, ‘*‘Panhandle Eastern Pipe Line Company-and Subsidiary Companies-Sales and Gas Plant ‘by Years’’. ~~ , + We do, however, renew our objection to EKhibit 38, which was submitted by Mr. Morton. I have stated on this- record the basis of our obje ctions to Exhibit 38. Briefly, to. reiterate our position, it is sitmply this.: a We -objeet to any evidence in this proceeding relating to ‘a separate allowance for going concern value. We believe that such a separate allowance will not need to be made in this case se, in the’ —— we reserve our objection on 1e entire proceeding. | :; Secondly, the evidence submitted by ‘Mr. Morton cannot congelvably furnish a proper basis for going coneern value. As we have already stated, the exhibit simply un- dertakes to allgeate a portion of past operating expenses, [fel S311] and past taxes and past interest to a so-called ‘total which ‘this witness calls. ‘‘attributable to mnused ca- pacity.’? ° ° ifi¢ 2 This so-called capacity has -no relation, in our opinion, and T believe in this witness’ opinion, to. the. physical eapa- —etty of this pipe line system. Et includes expenses which | are obviously unconnected with any “unused capacity’ of. the pipe line, system, \Somie of those, as your Honor will recall, are distribu. . tion system expenses ineurred in connection with the opera: tion of distribution systems whieh are not even now ow ned by Panhandle Eastern” Panhandle Pipe Line Company. © . They include the cost.of reading meters in eommmnities in Kansas and Missouri, the-cost of repairing services and mains, the cost of advertising; the’ cost ofgsoliciting cus-_ tomers. It includés an anascertained. amount’ of interest paid by a number of subsidiary companies whose opera-— tions had. nothing to do whatever with the.operation ‘of the main pipe line system which is the subject of this pro- ceeding, re of ° But assuming that all of those expenses were proper and could be capitalized into a rate base under the guise of go- ing concern value, we believe that the evidence fails to sup- . port the method weed ky thi& witness fo arrive atthe amounts, properly applicable or attributable to’ unused ‘apac ity. ’ ; ae Those, brietly stated, are the°groutds for our objection. Weobeleve that this exhibit, namely, Exhibit 38, should be_ (tok 3312] excluded. if Trial Examiner: Some reference was made yesterday to further data that had been requested of-Mz. Morton and I would like to know whether-the data, which, I assume have not been furnished, will have reference to Exhibit 38? Se e e Mr. -Lattman > -Those data will not. affect Exhibit 38: Those data relate to Mr. Morton’s Exhibit No, 40 and pos- siblv to No. 41, ‘but particularly to Exhibit Ne. 40. In other words, we merely want the underlying working papers for Exhibit 40. T believe that counsel on the other side_of the table will agree that Mr. Morton’s. working papers to be furnished, and additional data, such as esti-» mates of revenues, dc not have any relation td. Exhibit oe. but relate particularity to Exhibit 40, Trial Iixaminer: Referring to- Exhibit 38, 1 will ask counsel for Panhandle. Eastern : Pipe, Line Company whether the sums shown in Line 26 comprise merely a part of the sums. which have heretofore been charged: to the aperating expenses of fhe company and its subsidiaries? : ¢ % * .* " ° r ; ay 2 ONT t ees Aen “1049 . Mr. Culton: They include ‘i thaltiee- hek gak oie the excepted-items yelating to A Argus, the Loca? Area’ and the transportation of gas. ~Trial Examiner: But they do constitute a part of opera- ting expenses whicli have. heen charged, as such, on the books of the company? . [fok: 331 3] Mr. Culton: That is correct. Trial Examiner : And the segregation of a part is only. . for the’ purpose of allocation to estimate what you term ‘the cost. of cee. the business’’ ee Mr. Culton: That is right, the vost of carrying the unused eapdacity. Trial Examiner: Exhibits 40 and 41,:so marked for identification, will be received without objection. : ° eo: . co oe a) . e- @ Trial Examiner: The objeetions of Commission Coun- 4 sel to the reception of Exhibit 38, will be overruled and — this exhibit will be received for what it nay be worth, although there is, #® the view of the Trial Exaininer, con- side rable merit in the objection.. The. fundamental hain stated in the objection will, of cofirse, he given consideration when the. evidence is re- viewed. ° {fol 3316] P. Me Dos D Bippison, a Witness, having pre- {fol. 3317] viously beef duly sworn, resumed the stand and testified further -ag follows: ‘ *- ie ee ae Redirect Examination (Continued).. . o .. -) = “¢ . e rte Mr. Littman: (Interposing) Pardon me, Mr. Culton. é a ran . Do you mind i! I ask.one porercon to clear up some thing? “ Mr. Culton: Go ; ahes ad. ; “Mr. Isittman: Mr: Biddison, with respect to the break- down by vou just referred to in ‘Exhibit 89 from Page 156 to 350, did you use that breakdown in connection with mak- g lag vour de te rmination of de ‘preciation? The Witness: Yes, sir, [ did. Mr. Littman: To what extent? Would you mind telling. us to what@xtent you used that ‘breakdown? oa Ra F ; The Witwess : This ‘equipment in’ Exhibit Mo. 39 is.: summarized (py classes af use and eeeaon on Page 155 of xhibit NOESY. Seay “ | : That Summary is a summary of the data on the. sué eooding. pages which details the installations and that sum-_ Mary. on Pas? 155 is the data shown in Coltmn B and. Column Avon Page 19 of Exhibit 62, apd it iS the data to which, in my working papers, I made application of the figures of | bianca ies to be dediteted for Hepreciation.. Rie a ne atin Os mins onset --we eer * ’ , ° . 3 : o Se te qudttiagsitp et antes 1051" a © Mr. Littman: Do I understand that you arrived at a ‘pereent of deprecjgtion for each and every item of equip- [fol. 3580] ment fsted on Pages 156 to 350, inelusive, of . Exhibit. 39% mes we * -'Ehe Witness: I.do not know whether you understand ctdat or not, but I want you to qistinetly understand that-you “should not understand it that way, because I have ex: plained it otherwise. ; I determined an amount-in percentage to be deducted for depreciation for each class and location of property in” the tecapitulation sheet on Page19 of Exhibit 62. Mr. Littman: In other words, you workéd from the re- capitulation sheet. shown on Page 19 of Kxhibit 62, rather than from the details shown’ from Pages 156 to 350? The Witness: That is right. The things which I saw are the details which are shown in the various pages of Exhibit No. 39, ; The things to which ‘I apptied my percentage, resulting froma those observations, are the ijems appearing if Col-. win Boon Page ‘19, E:hibit 62: | ib a « ° . * + es ® ? (fol. 3638] By Mr. Wheat: *. * * ° ° ° * -% [ fol. 836391 Q. Now, Mr. siddison, when approximately did [fol. 5640) you make the inspection to which you have fes- “tifidd with respect. to the company’s pipe line. . A. “This inspection began, starting from Amarillo on August 17,1941. | continued over the-system to its cast- ern end, reyirning to Kansas City upon August 26, 1941. 3 7 e - . : ¢. (). Who were » they? . _ A. Mr. Shattaék and Mr. ‘Bodner, pane they aid. not: accompany me up” iny inspection of Louisburg station | and Olpe statian. > (). Now, prior to the commencement of this inspection ‘trip’on August 17, 1941; at Awarillo, Te ‘Xas, had- there © been any diseussions of such an-‘imspection and, if so; what. "were the ‘y, and please detail for the reeord what the situa-- tiod Was in that respect? —- ‘ A. 1 began work on this Panhandle isantien situation in preparation for this hearing on July 22. at. which time I attended a conference in Kansas UC ity. r" a * . ‘* . *. ‘“ ¢@ ee : fist | { fol. 3641] Q. Gene rally, W ho 1 was present ang what was the nature of the conferente? © © Es A. ‘I eannot give a list of. those present: beeause I do, not have such a list. _ Do you remember, in general, who were there? A. Well, I know, of course, that-I was there, and that Mr. Burnham was there, Mr. Creveling, the president -of the ¢ ‘onpany ; Mr. Paxton. Q. .Who is Mr. Paxton? - A. He he ads their’aeeounting foree from ‘Kasear™ City. Tle is sectigtary wars big ae believe, is his title. Mr. Neuner, the operating vice-president, was there. I. believe Mr. Glenn Clark,- the company’s . attorney, was present at the conference, and'I believe Mr. Carl I: Wheat and Mr. Dom Culton were present at that conference. . - ‘ an *. > * . -* 7 . > -* Q. Yes. What was the general nature of. the conference? [fol 3642). A. The general nature of thig} conference was to discuss the/question of how to prepare for- this hearing on ‘which a date had been, at leastetentativ ely, set: -Q: And was anythingdispussed at that conferenge with reference to the inspection of the company’s, physical | properties for the purpose of determinitg the amount of depreciation or loss of value which had occurred there- in? - - A. Yes, that matter was discussed, ‘and it was under- stood, as a result of that conference, that I’ would make the inspection and that the representatives of ‘the Federal s ¥ : f. vy , sunt NE GAS SIA i aioe ern a oe ae | Prod ip latnhn® Fh, ley 1053 ° during that inspection,yliatever I saw. , Q. Do you know,.Mr. Biddison, whether a communica- tion was addressed by the Panhandle Easter, Pipe Line Company to the Federal Power Commission in connection with or inviting representatives of the Commission. to ac- company. you on this tour of inspection! ° ‘A. I know it was understood at that *conference that that would be: done. and that. stibsequent events indiated the invitation had been extended. 9. > - Mr. Wheat: I would: like, Mr. Examiner, to read this short-letter into the record and I will hand the copy to the reporter,and it is understood with the Commission that | -if, on examination, it does not check with the copy they received, we will discuss the matter. and make the check. 3 [fol., 3643] Trial“Examiner: Very well. Mr. Wheat : All fight, sir:. ae This i is dated Jaly 23, 1941. — * | | “Federal Powér Commission, W ashington, N. €. Attention: Mr. Leon M., Fuquay ae ae Re: City of Detroit. and County of W avne Vs, P: —s Eastern Pipe Line Company - and Michigan - Gas Transmission Corporation—Docket No, ‘G-200. “Gentlemen: sn y j — ea. { ; -_ | A ‘In connection with the above proceeding, Mr.*P. Me- Donald Biddigen, Consulting Engineer, Dallas Gas Build- ing, Dallas, Texas, is making a valuation of our phy sieal properties. Commencing on or about August- 4, he will make an inspectioe tour for the purpose of determining, the present conditie' of these properties, and during this tour he Wilk inspeci portions of our pipe lines which are “to be’ utcov ered at Variows locations designated by him. “Thinking that the, Commission, through one of its en- gifeers, night wish to observe the condition of these prop- - erties in connection with ‘this case, or in conneetion with its own investigation under Docket :No. G-! 207, we invite you to designate some member of your staff to accompany — Mr. Biddison on this tour. His transportation over our ® & . “4 Power Commission would be given an opportunity to see, — _dated July 23, inviting ‘a thember of the Co 54 rear Be ibs coon © sy stem. w oald be provided hy .thiis company and pore he desire to inspect portions of our pipe lines: not ‘uncovered for the. purposes of this inspection tour, we will be glad ' [fol. 3644] to cause such other. pertiome to be uncovered ; for his inspection. . . “Tf vou desire to avait yourselves of this épportunity to~ inspect the physical properties of this company, please give us the name and address of the one vou designate to — “make this trip and we will have Mr. Biddison ¢ contact him as soon as possible. ; ‘ _ Mery truly yours,’ I believe it was signed by J. D. " Creveling, as president of the company. > By. Mr. Wheat oa ; ' Q. Now, Mr. Biddison, ie you know whether the Pan- ai _handle Eaktern Pipe Line Zindér present} — : ; A. . Yes, sir. » . (fol. 3647] Q. When 4 was that held? A. On August 2nd. « - ‘Who van reve there, so far as you can remember ? Mr. Neuter, Vice ‘President of Panhandle Eastern 4, ipe Line Conmpany, | Mr. Glenn Clark, attorney for Pan-~* handle Eastern Pipe Line Company, | believe Mr. Don Culton,- counsel for Panhandle Eastern Pipe Line Company iu this case, was = at that meet- 5 ing. ‘ee . ss « >T was presemt, aud Mr. Zinder and Mr. Mcallister of the ; Federal Power Commission were present. {): Members ‘ot that Commission’s ‘staff? = Yes, sir. Now, will vou relate briefly your recolleétion of what, W as eee With respect to the inspection in question? i A. 1 outlined about the. number 6f inspections that 1° antiéipated making and | had a map somew hat°similar to thewmap that hangs on thew f.. ; ()... Exhibit 15? * s A.” Exhibit 15 in this case, on which, on the main.line | avstem, I had. indice ‘ated, generally, the locations of some.of the points at’ which J wished to make inspection. d \expisined that I was making. provision for that nuniber of inspections which | thought it. woufa be*desirable to make of such a property. in case of a purehase énd sale and did not piopose a large number of test holes. (fol. 3648] L advised thad I had indicated, generally, cer- tain locations upon this map and suggested that it would be advisable for representatives of the Federal Powe Com- inission make additional locations equal to. half *’.e loea- tions whieh T had selected. _ . ' ; They asked for w Copy Laaa' © , (). (Inferposing) When ‘vou -say-‘‘they,’’*who do you mean? J rahe A. Mr, Zinder:and Mr. McAllister. Which one made the request specifically, I do not know. It was sort of a ‘joint request that they be furnished: with a copy of that map and ~ ~~ ge A, .That is correct. SNe , Q.. In the meantime, Mr. B: ddison, aid’ vou send on nto Mr. Zinder or Mr. MeAllister in Washington this copy of this inap you have mentioned and alsosa list of the points where you proposed to dig test. holes?. a “AL dearranged for that. map. to be sc nt. 1 did not send it myself. sons (). Well, it was sent, was it es Ae lle Balas ; A. Tam sure it Was. Later infornmption i indicated that it had “been properly received. ; ‘Q.. Now, did anyone re presenting the Commission At _any time. actually suggest to you any ad fitional places for making x test. holes? % . ey patra A. No, air. —~ x ak Re ee Q. And did you, yourself, on Zour own -Velition ‘in- erease the number of test hole¢ by around 50 percent? A. I did at a later date-and after’conference with Mr. jfok: sol] Shattuck and Mr. Budne ry after their arrival at Kansas City. Q. When did they “arrive in Kansas City’ ae A. Ido not have a record of that with ie ee (). Sometimes : after the 2nd of August? . A. I think 1 ean, give an approxiinate an te on thai. I think it was about August 4. Q. At any rate, it was after this confe rence of August 2nd, was it naj? . 7 A? Yee a eae Oe, ° “=, 1059 Q.- And prior to your start on August 17 from Amaril- i lo % . abe : Pande , oa ae é .> A, Yes. 3 ima have been eee date T have - # viven. “Ay fe Q = Did you request nie of these gentlemen to make a designation . of additional. fest’ holes? : » A. I did. Z ~ Qo. And are we to understand tine they aid uot Jo so? A. They did not do so. © Q. Now, as-a result, of that, did you make these addi. tional designations? ‘or, eis A. I did and, in doing so, | marked them vpon. a map trom which the. station and plus number could ke identi. fied in the presénee of Mr. Shattuck and. Mr. Bodner. - ~@.. You meah, yeu marked them on 1 the nyAp in the pfes- enee of those gentle men? ee *A.-. Yes, oir. ‘ ? 1a e ay © * e~ ver F ifol- 3655 | P. McDoxavp Bippison a witness, having been previously sworn, resuméd the stand and. testified: firrther as follows: : . ; i a ae Redirect Examination (Continued) ated ee ee Wheat ; : } Qy Mr. Biddison, at the dae ol the. ance yesterday, you were discussing the program which you had de vefoped for* the Pweg? of the pipe lines of the Panhandle. Eastern Pipe Line Company in, conjunction with certain’, members. ofthe staft of the Fede ral Power Gommission. Now, I wish’ sou woulk proceed with your discussion 6f “what voit did sand particularly with respect to.the digging . of various test holes for -the examination of the line and ‘its condition. ue . ay A. When it developed that the cies for thedederal Power Commission, Mr..Shattuck and Mr. Bodner, would not select additional locations for inspection on lines above, the number whiel? E had, already’ located, I myself made. the | additional locations in their presence?’ - Q. How. did vou go about doing that? . A. I generally divided the districts, between loc: tions Which T had already selected, into. substantially equal, dis- oe es 4 , tances and-put these locatious as intermediate locations: | fol. 3656] ®. Where did you put them? | A. Intermediate: locations between the Jocations - which Thad previously selected. _Q. When you say yeu put them, did you - pat hens eras “map or something like that? | I marked them. on a map and marked them saliae to its location and plus number on the alignment sheets. Q. This you sav was dene in the presence of the mem- bers of the Federal. Power rr mmission staff? . AS 30, ae ; © (). All right, proceed. A. The inspectioy was by P. McDonald Biddison- ~Q. Was anybody else’ there at ‘the tinie who, looked at that pipe? A. Yes, sir. . ‘ A. Who'was there? . °° A. Representatives of the Federal: Power Cominission, Mr. Shattuck and, Mr: Bodner. . Now, in general, Mr. Bodner made the-ac ‘tual: inspec- tions of pipe and Mr. Shattuck made’ tlie notations di. ¢ 2 1064 ° rected re Mr. Bodner to be made.” In other words, Mr- Shattuck generally kept the records ahd Mr. Bodner gen: erally made the direct inspections of the pipe. ? . * eo s > 7 * 8 e ~ 85 ‘ - 5 7, ’ { fol: 3664] Q. Now, “Mr. Biddison, before’ you proceed. in conection ith ‘this photograph, did you take photo- [fal 3665]. graphs at ” or coeparage | all .of ‘Rieke: to waar locations? - ° ‘I did. Thére were one or two locations where I did a attempt to take pictures because of darkness, but, -except for that, I attempted to take ‘pictures at each location and I.do‘have such pictures, with a few excep- tions. I.did not have a perfect s score on ft, but. a pretty ood batting average. : * * Nese * Saco ; “* [fol. 3666] &. All right. . ‘ Now, how many inspections: ‘did you make of the pipe of this: company ! : A. -teee Mr. Littman: “May I dhguire if that represents the to-, ‘tal, number of inspections made by you on all types and kinds of pipet Mr. Whéat: That is what I meant by my question. T° wanted that answer. . : : The. Witness: You, sir. : 7 @ , ° . a . CP By Mr. Wheat: & : oe ().. How many was that? A. 116, * * * * @ * oe * —- . [ fol: 3667] Q. Were the representatives. of the Federal Power Cominission staff present af all of 3 vour ree tions? A. Yes, sir, at every one. . Q. Did they also make notations, to your knowledge, at each one of these locations? A. Yes, sir. ee Q.” Did either one of them Retually inspect the pipe i at those: locations? A, Yes, sir, there, was an ‘inspection mae by cone or athe other, or both, at every. location. _Q. One acted ‘as inspector and the other ax secretary, is ) that true? 1065 ,* - A. That was the general rule. As the general rule, .— se Mr. [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386404_0134%3A03. Public record. Not legal advice.