Evening star., 1896-02-12
A GAS HEARING
Municipal Control Of the Plant Ad-
vocated by Citizens.
FIGURES TO SUPPORT TIE CONTENTION
Officers of the Gas Company De-
fend the Present Price.
Mr.. LEACH'S STATEMENT

MR.. LEACH'S STATEMENT
The House District committee gave a
hearing today on the bill known as the
dollar gas BILL Representatives of the
two local gas companies of the city, OF the
East Washington and the Northeast Wash
ington Citizens Associations were in at
tendance to give their views upon the pend
ing measure. Representa- tives of the Civic
Center were also present.
Mr.. Dodge the First Speaker.
Mr.. w. c. Dodge of the East Washing
ton Citizens Association was the first
speaker. He said the people Of this city
are in the positions of orphans with
guardian, and the guardian Is holding the
orphans by the throat, while the gas COM
panies despoil them. This situation is
brought about by the action of Congress
having jurisdiction of the law regulating
the price of gas. Mr.. Dodge reviewed the
operations of the gas company for many
years past, showing the large dividends
paid by the company and the increasing
value Of the plant.
The question is, What Is the remedy? The
proper one Is to give the city municipal
ownership of gas and electric lighting
plants. He read statistics showing the diff
ference between the cost of contract lights
and municipal control thereof for number
of cities. These statistics were published
at the hearings III the last Congress.
He said there are twenty or more cities
in the country owning their own gas plants,
and in every instance where municipal
ownership has been substituted for private
ownership it has been to the benefit Of the
citizens and the municipality. A conspicu-
Gus instance was the case of Philadelphia.
Even the little city of Alexandria, Va,
owns Its own lighting plant and puts
profit into the city treasury.
Mr.. Leach of the Washington Gas Com
pany interrupted Mr.. Dodge with the state
ment that Alexandria, with municipal own
ership. charges $1:4O for gas.
Mr.. Dodge, continuing, cited the city OF
Toledo. where the contractors get 81 gas for
five years and 95-cent gas thereafter, with
small amount to be furnished free to the
engine houses Mr.. Dodge said the cost OF
gas has cheapened in recent years. and
modern improvements constantly tend to
reduce the cost of making.
There is not a shadow of doubt" said
Mr.. Dodge, that we can make gas at Us
to 90 cents a thousand and lay aside q
profit of 100000 year for sinking fund
to pay for the plant"
He said Congress should at least reduce
II 1t does not want to give municipal own
ersliip. The candle-power should be In
creased, too.
Some Questions Answered.
(Which gas is better-that made from
coal. or water gas?" asked Mr.. Huling Of
West Virginia.
"Oh, coal gas is better, but it costs
more" answered Mr.. Dodge.
do you think the municipality could con-
duct plant as economically as the pri-
vata corporation? asked Mr.. Richardson.
by all MEANS" answered Mr.. Dodge.
There is no reason why 1t should not"
To prove his assertion, Mr.. Dodge quoted
the statistics for the city of Richmond,
where profit of % per cent was made on
the amount estimated by the city superin-
| tendent for duplicating the works.
In such cities are the gas companies not
| controlled by municipal politics?" asked
| Mr.. Richardson. =ss-------
| Not at all. There has never been any
difficulty about that. The superintendent
| of the works is usually continued through
| changing administrations. In cities like
| New York, where corruption exists, who Is
| it that perpetrates frauds? 1t is not the
| citizens, but the corporations seeking char
| ters.',
| Mr.. Dodge said the reason for reporting
| adversely the bills for rival gas companies
| in the past was because Congress was
| averse to tearing up the streets. Moreover,
| it would be absolutely impossible to prevent
| the new company from combining with the
| old one, and for that reason alone he would
| oppose chartering any new company.
| Mr. Leach asked Mr.. Dodge about the
| Philadelphia statistics, and, in default OF
| answer, stated that the gross profits of the
| Philadelphia works last year were only
| s19231O, while the candle power of the gas
| furnished was 10.41.
| Mr.. Sands. for the proposed new gas com
pany, controverted Mr.. Dodges assertions
| about the possible absorption Of new com
| panies by old ones.
| Mr. McIlhenny of the Washington Gas
| Company said there is not today a com
peting gas company in any city in the
| United States. Although many have beer
| incorporated, they have all been absorbed
| and combined.
Mr.. SiddOns IndOrses Mr.. Dodge.
Mr. F. L. Siddons spoke in behalf of the
| Civic Center, an organization Of citizens
with a membership of fifty or sixty. HI
indorsed what Mr.. Dodge had said abou
municipal ownership of gas and electric
| lighting plants. He thought the quality O.
gas should be improved. The gas now fur
nished has greatly deteriorated Of late, ant
he thought 1t was due to the use of watel
| gas He favored an amendment to tn,
pending bill, which would prevent the pos
sibility Of the company avoiding compli
ance with the requirements for maintain
ing the standard. He did not view favora
bly, the chartering of a new company, fo
fear it would combine with the old one. H,
submitted to the committee the report O
the board of trade on gas,recently published
in The Star. He said the dividends Of th
gas company have approached nearer fift!
per cent than the sixteen per cent quotet
by Mr.. Dodge. Mr.. Siddons was Questionet
about the alleged watering Of stock Of tn
| Washington Gas Company, and insistet
| that the stock had been watered.
Mr.. Babcock construed the term watere,
stock to mean where increased paper stool
had been issued without true value. TIL
gas company contends that its Increases
stock represents an increased plant.
What Mr.. McIlhenny Said.
Mr.. McIlherny said:
Mr.. Chairman and gentlemen, owing t
the shortness of the time left, 1t will be I'm
possible for me to go into this as I expect
| cd to, and to answer all these argument
| that we have heard here over and owe
again; but would just like to state to tn
committee that have been in the gas bus
ness all my life, and am acquainted wit
nearly every prominent gas man in thi
/ country, and have never known e set G
men who are so anxious to sell their pre-
duct cheaply as the gas people. There
a limit of course, beyond which the pric
cannot go to make profitable returns to tn
stockholders. That limit, by legislation an
by public opinion, has been very nearl
reached throughout the entire country; an