Evening star. [volume] (Washington, D.C.) 1854-1972, 1886-12-21

/ To the Editor of the EVENING STAR
| Ihoticed your editorial on the Georgetown Gas
company, in which you very properly say that ten
per cent net profit Is large interest in these DAYS
| OF cheap money, when capitalists are glad to get
from three to six per cent. But il ten per cent on
the capital actually invested Is too much, what
! shall be said Of the Washington Gas company
winch, as shown by the sworn statement of its
| treasurer, has for years taken from the public
orer tcenfy-fro per cent net its scotered sfoet!
IN tne investigation last winter, its president
sa1a lnes Gould not sell gas at LIS and make any
uoneS stnl- IN order to prevent the passage OF
the bill reported by Senator spooneT, the COM
pany curing the recess, reduced the price to 81
commands almost one hundred Der cent premium
In the market, its face value being 500 and the
ssinns price being $780, the asking price 500 or
NO citizen desires to injure the stockholders and
no one OBJECTS to the company receiving fair in
terest on the capital actually invested. Anything
over and above that is simply legalized robbery Of
the citUens and the government
Inc price at which gas has heretofore been sold
1efe Oh ELSEWHERE Is no criterion, for two reasons
nIS,, because 1t has paid unreasonable profits;
ana Scond. because recent Improvements enables
erly. For instance, as shown by paper read at
the annual meeting OF the Gas Light association
a, Cincinnati, October 22d, 1856, and at the an
nual meeting OF the Central NY. Gas Engineers
association, at Syracuse, May 21st, 1885. it is
shown that by actual operation for nine months
yield OF IL 61 feet OF gas per ton OF coal the gas
being 10 $40 candle power, This is equivalent to
IA, l6o ieet OF 10 candle power, which is what we
Mr.. McIlhenny, the president OF the company
here testified that they could get but 10000 feet
per ION Oh coal. ana that was 10 candle power See
his testimony, page 81. Here then, according to
the statements OF the gas men themselves is a
gain OF almost tify per ceat by this one improve
ment. ana That, too, in coal gas-nOt water gas
SO 1t Will readily be seen that former figures as to
the price OF selling, or the cost Of production Is no
criterion at the present time.
OF course a Small concern like that NJ C,eoroe
town. with but about 500 consumers cannot
furnish gas as eheaply as can the Washington
company. Win It's $1,000 consumers and the gov
eminent besides. Al the same time, it is unrea-
sonaeie and unjust to require people on one side
those on the other side This OF course grows ont
OF the TACT That separate gas works weSe estab-
lshed m the two places when they were entirely
separate ana distinct corporations. 1t is simply
ona of the results OF the former condition Of
affairs, Tor which no one is to be blamed. But
nOw that the conditions are changed and the two
places have virtually been merged into one the
cost of gas ought TO be made uniform. There are
TWO WAYS In which that can be done. The first is
Tor the TWO companies TO unite on some basis. by
the Georgetown selling out to the Washington
company IL they can agree on terms, and let the
one company furnish all the gas. The greater
the production, the cheaper IL can be produced, as
all agree. The second, and by far the better way
IS for Congress to authorize the condemnation and
purchase OF the works and rights OF both com.
panieS consolidate the works and let the national
OK DIS. r1ct government run them the same as 1t
sb nsrs o pnis6 or rent them to
llght ana purity at fixed and largely reduced
rate.
IL 1t be objected that works run BY the govern.
meht costs more than when run by private par
tles, there are plenty OF responsible parties who
would be glad to rent the works and furnish the
gas at a price that would enable it to be furn-
ished to consumers at IS cents per I,OOO and bet.
Ter gas than We are getting row.
The tendency all through Europe now is for the
municipalities TO buy out the private companies
and own and run the gas works. 1t is only a
question OF time when 1t Will be done everywhere:
ana where Is there q better place to begin than
here in the District, and now: We'd.