The morning times., 1895-11-12
GAS AND ELECTRIC LIGHTING.
Exhaustive Report Favoring Govern.
ment Ownership OF P!nnts.

Exhaustive Report Favoring Govern.
ment Ownership OF P!nnfs.
The committee on gas and electric light
reported as follows:
The undersigned committee was ap-
pointed, pursuant To a resolution adopted
by your body on January %, 1895, and
| which reads as follows:
! Resolved, That there be appointed by
| the president of the Board OF Trade, a
| special committee of seven members, no
| one of whom shall he connected with or IL
nancially Interested I'm any company or
! corporation for lighting purposes in the
J District OF Columbia, whose duty it shall
| be 10 report TO this board, as soon as prac-
! tlcable, what In its Judgment is a fair and
suitable price for gas VI suitable quality
! In said District, and what action should be
! taken by this board to the end that gas
| hereafter shall be furnished at such price;
and also report whether gas can be fur
nished more advantageously by the Dis
| tTict of Columbia or by private corpora
| ton"
The foregoing resolution was amended
before adoption by including therein the
| subject of electric light.
Immediately upon entering upnn its duties
| this committee caused Ia be published a
notice asking all persons interested 10
furnish it with data relative to the question
under consid Grafton, at the same time
sending tC the corporations most directly
interested. special letters calling for par
tIcular information. The answers OF these
corporations will be considered here
after.
There are these corporations in this Dis
trict engaged In the business OF furnish
Ing light, namely, the Washington Gas
Light Company, the Georgetown Gas Light
Company, and the United States Electric
Lighting Company. We Will first consider
the Washington Gas Light Company.
GAS COMPANY PROPER.
This company was chartered by Congress
in the year 1S4S, with its capital stock
fixed at 500 900. OF this amount Si2,5U0
was paid in cash and the rest probably
given to subscribers as bonus. by sub
sequent acts or Congress the capitalization
was increased to $500 900. Whether the
difference between the original capitailZa-
ton and the latter sum was ever paid in
cash, does not satisfactorily appear, and
the books relating To this matter nave been
destroyed.
In 1866 the capitalization was increased
to 81 900 900. 1t is conceded by the coin
pauy that this increase OF n half million
dollars was pure gift to the stockholders,
no money having been paid therefor by any
of them. In 1872 the capital stock was
by an act of Congress increased to ST.
200, 900, with the privilege of an additional
Increase, making the aggregate 81 2.ouO,ooo.
Between 1872 and 1888 advantage was
taKen OF the act last referred to and the
capital increased to the larger sum.
1t is coptanded by the company that
the last increases, aggregating Sl.OUO,OO0,
We're based upon actual stock paid IN by
the Stockholders for the stock received
by them, but a careful examination of al
the facts does not appear to sustain this
position, inasinuch as it appears that at
times, substantially cOincidcDt with new
issues of stock, enormous cash dividends
were made, far in excess of the amounts
received from stockholders iu payment OF
new stock, the dividends in one year aS-
gregating 50 per cent, in another 90 per
cent, and in a third 90 per cent.
Since SS3 the stock Of the company has
pot been increased but within short period
by means of a new device, all the effects
of further watering OF stock has been
secured. The company has recently issued
to stockholders certificates OF indebted
ness aggregating S6OO,OOO
These certificates represent no money
paid in by the stockholders and the excuse
for issuing them is that from the surplus
funds of the company 100000, of stock
holders money have been expended in eX-
tending and developing their own plant.
Upon these certificates thus presented to
the stockholders 6 per cent interest is paid,
anu bN tuls lIitslhs AoNC
their cake and eat 1t.
ITS DIVIDENDS.
Within the past year stockholders have
received as individuals 20 per cent on
S2,OOO,O0O. or 100000, and also q per
cent interest on 100000, or $4,000,
ma king a total Of SI36,O0e. When one
bears in mind the fact that this amount
is paid upon the actual cash investment
of not exceeding $500, 900, upon which
II represents n dividend of 81 per cent, an
idea of the profits OF the gas business may
be formed.
The regular dividend of the company
of late years has been 10 per cent. on its
capt. alizatioD of $1,000, 900, but the |
amounts carried to the surplus fund indi-
cate that the profits Of the company justify !
an average dividend at least . per cent. |
greater or 80 per cent, per annum upon |
the amounts supposed to have been paid !
in on capital account, the company at
the same time being able out of its profits |
to pay for extensions ill many cases of |
doubtful necessity.
Ii is not possible TO give more tnan an |
answer TO the Questl. as TO
the actual cost OF the production Of a |
thousand cubic feet of gas. The factors |
vary with the season nd with the market |
price of material. According to tie best |
modern authorities. the cost of production |
Is placed at from 20 TO AZ cents q thou |
sand, approved methods being used. The |
same authorities estimate that to these |
figures must be added about 40 per cent, |
or 10 10 16 cents, as the cost of delivery |
al the burner. Tethis amount must when |
gas is furnished by private company,
be added tasss, interest and profits. and
by whomever furnished. repairs. The lat
Ter item, as shown by the reports of the
Gas Light Company. amounts
10 but PER cent of the claimed value of
its plant, or cents per thousand cubic |
feet of gas manufa ctured.
The ra W materials entering into the cost
of the production of gas are for the most
part coal and oil. In 1889 these cost the
under consid or alton S254.-
326.s1. and in 1898 S233, ,329.19. TAX
Ing into consideration the fact that in
1889 691. 3SS .5%l chic feet of gas were
sold and in 4 - &C, ,2Sl GOO were SIM
larily disposed We find so far as
cost of mater-ai --ss concerned sc cents
per thousand would cover it in 1889 while
N 1898 the expense was only % cents
per thousand.
GENERAL EXPENSES.
In 1889 wages and salaries, street lamps
distribution office and general expenses
80 cents per thousand cubic
feet OF gas produced, and in 1898 the