The Sunday herald. [volume] (Washington [D.C.]) 1866-1887, 1886-06-20
TUE GAS QUESTION.
The Right OF q Corporation TO no business at a
Profit

To The Editor or The sunday Herald:
SIR: know am trcspassing on your space, hut
cannot forbcar TO ask leave to reply to the commu
nlcation signed NV. G. Dodge" In your last issue
For one who poses rs friend and guardian OF the
public, Mr. Dodge seems TO have rather loose ideas
OF his duties to the public. MysterIously intlmang
that he has private Information that law will soon
be passed deprvng gas stock OF nearly all It's value,
he confdcntaily advises you aud your fiicnds ITO
stand from under' that Is to say, to sell the stock
which he knows TO he almost worthless TO some one
who has not the same means OF Information.
Now, Mr. Dodge and probably dlTcr as to the
moral question involved In this proposition, but, ac-
cording to my notions, such transaction would be
almost on a par with passing counterfeit money
which had been taken In good faith.
In answer To his question, ."What are gas compa-
MES chartered for7" say frankly that the object OF
the incorporators AMI shareholders OF gas compa-
MES is the same as that of the incorporators and
shareholders of banks, Insurance, hotel, railroad
and other companies, namely, to make money. II
the shareholders did not expect to make money
there would be no such companies.
charter Is a contract between the public and tho
lncorporators. The public agrees to give certain
privileges to the corporation: the corporation agrees
to perform certain services for the public for con-
sdcralon lit Is Intended to limit the profits to he
realized such provision ought to be inserted In the
charter at the outset. II no such provision is in
for years realizing profits SO large as TO make the
shares valuable and to induce prudent people to buy
them at premium, common honesty dictates that
any change should relate entirely to the interests Of
purchasers In good faith.
The legislation proposed In the present case Ia oh.
jeconable not only because It would result In de-
prving certain citizens OF their property without
compensation, but also because special class Ia
selected for the application Of principle, which, II
applied at ALL ought to be applied to all classes alike
Cheap gas Is no doubt desirable, but 30 are cheap
rents, cheap Insurance, cheap advertising, and low
rates OF interest Even an original subscriber to the
gas company has as much right to the Increase In
the value OF his property resulting from the growth
the city ss an Investor In real estate, In bank. an
Insurance company, or other enterprise.
Hit Is Just, In order to give tie public cheap gas to
limit the dividends OF the company TO interest on the
| small amount Of property which II owned forty
years ago, It would be equally Just to give them
| cheap rents by limiting the income from real estate
to Interest on Its value forty years cheap interest
cheap Insurance, and cheap advertising, by limiting
the dividends OF banks, insurance, and newspa-
per companies TO interest on the amount originally
invested In the various enterprises.
MIR. Dodge wants the United States either to take
my property att price equal to about one fourth
what paid for It, or by special legislation to reduce
| Its value to what q small portion of 1t was worth
forty years ago, before was born; hut short time
| ago, when the United States wanted some of Mr.
| Dodge's land for a library building, he thought
he ought to be pail, not what It was wO rtf
forty years ago, not what 1t cost him, hut grea,
deal more than any other purchaser would ever have
dreamed OF giving. jew.
JUNE 10, 1886.