Evening star. [volume] (Washington, D.C.) 1854-1972, 1886-07-10
ONE DOLLAR A THOUSAND,
The Senate District Committees ReDor
ON the Washing ion Gas Company.

THE COMMITTEE OPPOSED TO CHARrERISG
NEW CoMPASIEs, BUT IN FAVOR OF RE-
Streaming THE EXISTING ONE BY Law
| COMMENTS on THE DIVIDENDS OF THE COM
PANY, THE SALE OF ITS BOOKS, &c.
Mr.. Spooner, from the Senate District com
| mittee, on the 9Th inst. submitted to the Senate
| the report OF the committee OF the investigation
made under the Senate resolution OF March "a
1886, directing the committee ito inquire into
the eXpediency OF reporting a bill providing
that the price of gas furnished by the Washia p
| Ton Gas Light company shall not exceed 81 per
| thousand cubic ieet." This report was accom-
| panied by bill providing for reduction In the
Charges for gas and an investigation, by board
appointed for the purpose, OF the whole subject
| Oh gas manufacture. The provisions of this bill
are rinted in full elsewhere in The STAR. The
| report gives brief history of the Washington
| Gas Light company, to- which tie manufacture
| ana sale OF gas i'll Washington is eXclusi vely
committed By law.
ZINE COMMITTEE the report says. deems il
uAWISe To Incorporate Other gas companies for
Operation within the city of Washington i'm
! competition with the existing company. II adj
eIuate means OF protecting the public a. 'ainst
eHtortioh;,te charges tor gas and gas serV ce in
the city exists other than by the competition OF
other companies 10 toe created by Congress, it
seems 700 clear Tor debate that such means
should tie first exhausted; ior ii is repugnant to
| the natural and general sentiment OF the COM
HIunIty that the streets OF the city made at vast
expense exceptionally beautiful. should be torn
| up III order to- furnish to other gas companies
| means oil competition. Moreover. it Is quite
| certain thit, reasoning from the general eXpe-
| fieice o; municipalities in the United States,
| com .ttitlol among gas companies is Il very I'M
| certain ana inefficient method OF reducing per-
| hahently the price ufgts 10 consumers
| HE history of the Washington Gas Light
company Is, the report says, f;lr 1t is
| Ehh'DIt, one OF uninterrupted and marvellous
| huanCia! success.
TIE SALE OF THE COMPANYS BOOKS.
| Referring 10 the inability of the committee
To OBTAIN a statement of the amount paid into
| the capital by stockholders up to 1856, the re-
port comments upon the sale OF the books of
| the company as Waste paper at that time, and
| says: he only explanation which is offered of
TIE sale OF these books is that some of them
| We're noluy and damp, and some OF them had
| been somewhat irrcguIary kept. 1t is a sig
nificant fact tnat the destruction of these books
blOtted out from the public and from inyeStigY-
| tIon the detailed transactions of this corpora
| ton up To the Time in 1866 when the company
| distributed among lis then stockholders, sis
| representing corporate earnings NeretOtOre put
| INTO AN eAten>lOn of the plant, S5UJ,OOO of
stock, making altogether 81 900, 900 of capital
iZatiOn. 1t Is stated by way of defense OF this
| transaction, which ut The time at least had no
| warrant in law, that tine company had with
| held dividends ioriour years or prior to S66
ANA iiid used the money III extensions. Ii this
would constitute any defense oi the transaction,
whether the facts 50 alleged are true, is placed
beyond reach OF accurate .iscertainment by the
safe of the books, unless the treasurer oi the
company, in his letter OF February 20, 1881, to
| the lion. samuel }. Randall stating the yearly
I
pany, had the benefit the books, or a COPY OF
! the books, Notwithstanding said sale.
| DIVIDENDS PAID BY THE COMPANY.
! The following is believed To be a reasonably
accurate summary OF the dividends paid by the
company since its organization. 1t paid = per
| cent in 1850. In IS5i and 1872 no dividends
! were paid. In 1896 1t pald ohs per cent on
s;i3o.Ooo capital; IN 1885 ii paid 10 per cent
! 1o5., 10 per cent; 1S5S. 10 per cent; 1853. 10
| per cent; 1860. ~ per cent; 1861 10 per cent;
| Io1-. 10 per cehl, ana 1868, 10 per cent. 1t is
alleged that no dividends were paid in 1854 or
| 1ooo. v neither tnI> Is true or not cannot
| tell. in cbrudry, 1866 . per cent was paid on
$780, and IN August D per cent Was paid on
/ 81 .3DU,"GO. In 1867, 10 per cent was paid; in
lo6S, loper cent: III 1869, 20 per cent was
p.,!d on ; .ooo,ooo; in 1870, 40 per cent; in
| 1875, IL per cent; ill 1874, 90 per cent in
| $50, - per cent, i'll 1876, to per cent; in
/ 1877, 10 per cent; i'll 1873 I5 per cent; in
| 1919, 10 per cent; and III 1850, 10 per cent
] The treasurer oI tie company stated in a letter
| to the Hon. samuel j. Randall, February 70
| 1881, that 'ior the thirty-one aud one-halI
| years the average vi Cash and stock dividends
| mas been sixteen and eisht-tentEs per cent
! la ISL, 10 per cent was paid; in 1882, 10 per
cent; oS3 30 per cent on 81 900, UUU CAPT
tai; In lool, 40 per cent; ana in 1855, 121a per
cCat although the company earned l11o per
| consumers. In 1885 IL appear, the dividends
WeIe largely increased by the distribution oil
| ny 10 extend 1t, work and meet tie threatened
| electric light competition.
| EXTRAORDINARY PROFITS.
| without spending further time,' continues
| the report, upon the capitalization and earn
! ings OF this company, it seems very clear that
! its profits have been extraordinary and very
! far beyond any profits which u corporation
gwen by law u ntonlpoty, or exclusive privilege
| III a great and growing city, including among
/ its customers the United states government
should be permitted TO earn from the sale OF a
cOtamOdGy tH SEcis general as to be consid-
! cred Il necessity 10 the popular comfort.
FROM al! that the committee has been able to
learn OF the cost gas i'll this city, ii believes
it safe 10 say that one dollar per thousand cubic
| ieet :" i'll afford To this company u dividend ON
It's capital stock which will at time tail be-
low per cent per annun.
| TIE QUALITY OF THE GAS.
| After d review of FACTS. documents and evil
| dence placed before the committee, which, the
\ report says, not able ''to make the most
| searching investis ation of tine subject possible
10y the aid OF gas experts and accountants" tie
rel orr says: The committee doubts whether
| tine gas how furnished Is such should tic fur
| Ii>heu, either i'll point Ot purify, illuminating
| power or healtilulne>s 1t is claimed t,y some
experts that the mixture OF coti-Sts ana water
| gas now furnished 10 the people of Washington
| Is deieterlCus to the public health. ana Lat
pure cOal-girs would be essentially better. This
| Is the Expressed opinion oi the pre-ent govern
men: Inspector oI gas. Other experts assert the
/ contrary. Bctween the Two the committee is
/ uuaDie to- decide. Wnetuer il would be better
! To- furnish al coai-2as or all water-gas, and
whether tine burners now in Use are proper
| burners ior the gas furnished, are matters
! waicn should be ;tscertaiued through Careful
/ Investigation by experts. 1t is claimed by
| some that the coaI-gIs aud the wttei-gas as
now manufactured III TINS city, being OF differ
ent SPECIFIC gravity do not dl1usc, out stra;iIy
! and that herein i, 10 DE found The explanation
oil the alleged TACT That the gas smokes. and
! that the burners becOine cnokcd and sticky
l The committee Is advised, ON tine other nlpd
/ by experts, that the diffusion is complete, and
/ That sucn stratiTIc,tIiOn occurs. Mne Their
this be true not this committee not able at
present 10 dtcIue. 1t Is also claimed, with some
4 snow OF foundation, that reduction IA price
| Goes not produce a proportlonate reduction in
4 bits.
! Inc committee is OF the opinion from all these
suggestions that II more complete system oI IN
s,Jectlon should be provided, and that DO W.r
should he lodged some where, with prov sion for
| its summary exercise, to protect the people
4 from impure ana unhealthy SaS,auu from fraud
| in meters and the like.
THE QUESTION OF CONDENSATION.
1t is not certain to the committee that
| the time may not come, il indeed ii
! has moi already arrived, when the best
! interests OF the government 4 gas consumer
and OF the people Oi the District require that
the United States should acquire, by purchase
or condemnation. l. III may lawfully do the lat
ter, the plant OF the asIIngton Gas ut COM
] pany, and supply gas To- the Inhabitants OF the
! city and Tor government uses, AS IL now con-
! to4s the water supply. Inc people are certainly
entitled To have put III to operation Ia this CITY
| Tor their reneht the best ana most approved
/ a. iistnces anu methods for making gas Cheap
ami pure, wnateSe CT revolution that may require
I ia tuc methods now here i'll Use. Icon
/ OIny and the public health alike demand it,
| Inc committee HAS not lett Justified in recon-