Evening star. [volume] (Washington, D.C.) 1854-1972, 1902-04-07
GAS CONSOLIDATION
Report of the House District
Committee.
ACTION RECOMMENDED
OBJECTS OF THE SUBSTITUTE
BILL SUBMITTED STATED.
TO Limit the Issue Of stock-Approved
by the District Commits
sioners.
ACTION RECOMMENDED

The report OF the House committee on the
| District Of Columbia on the bill allowing
| the consolidation Of the Washington and
Georgetown gas companies and allowing a
recapituIation OF the Washington company,
was made to the House today by Chairman
Babcock. in accordance with the instruc-
items Of the committee at its last session.
The report states that the substitute bill
reported by the committee differs only from
the original bill in the amendments sug-
gested by the Commissioners of the District
OF Columbia, as noted in their letter, which
appears hereafter as part of this report,
and the amendment added at the end of sec
ton four. adopted by the committee to
limit the issue Of the stock
Objects Of the Bill.
The object of this bill. first. is to reduce
the price Of gas in all that part Of the
District west Of Rock Creek known as
Georgetown, from 81 % for 1 900 feet, which
Is the present price charged by the George
town Gaslight Company. to 81 per 1000
feet, the same as is now charged by the
Washington Gaslight Company in the city
OF Washington and as fixed by an act of
Congress approved some five years since.
This reduction In the price of gas will meet
with the unqualified approval Of the citi-
zens of the District living west of Rock
creek, and will also prove economical to the
District government in the matter of pub
lie lighting.
The second object Of the proposed Iegsla-
tion Is to authorize the Washington Gas
light Company to buy the stock of the
Georgetown GaSlight Company so that the
business Of these two lighting companies
can be conducted under one management.
Your committee believes that it is to the
interest of the public that these two cor
porations, which are in no sense competi-
tors. should be consolidated. for the rea-
son that it will result in uniform price
for gas throughout the District In place
of $1.25 per LOCO feet in Georgetown, and
81 in the other portions of the District, as
at present.
The further provisions Of the bill author
ize the Washington Gaslight Company to
increase its capital stock to the market
value OF the same. but not to exceed S100
share for each $40 share now outstanding
The present stock OF the company was
issued many years ago, and the certificates
are of the par value of so each, instead Of
the customary and standard amount Of
500 par each
The outstanding stock of the Washington
GaSlight Company consists of 130. 900 shares
of the par value of $40 each. and the stock
of the Georgetown Company consists of
COCO shares of the par value of SIS each.
The affairs Of this company have been
conducted throughout its existence in a
business like manner, and no attempt has
ever been made to water the stock or to
increase It beyond the actual cash value,
and to meet the requirements of this act
the majority of your committee can see
no reasonable objection to permit the is
sue Of stock, as provided IN section 4 of
this bill, based upon the value of the
property Of the Washington Gaslight Com
pany.
Authority to Increase Stock.
Your committee believes, under the pro-
visions of section 766 of subchapter 13, and
section 6S3 to $40 inclusive of subchapter
4 Of the District Of Columbia code, ap-
proved March 3, 1901. that the Washington
Gaslight Company has authority under ex-
listing law to increase its capital stock as
provided In section of the reported bill.
The passage of this bill will, therefore ope-
rate as limitation upon the practically
unlimited powers Of capitalization con-
tanned in the code, and any increase of cap
itailZation in the future will be under the
absolute control Of Congress.
Your committee has thought proper how
ever to recommend an additional limitation
which will render it impossible for the COM
pany to hereafter issue, for any purpose,
including the purchase of the Georgetown
Gas Light Company, any greater number OF
shares OF stock of the par value of 800 a
share than are now outstanding of the par
value OF 80 per share under existing law.
Your committee Is informed that the stock
of the Washington Gaslight Company Is
distributed among and owned by over 1000
individual owners. as shown by the books
of the company. besides large numbers in
terested in the holdings Of banks, trust
companies and estates.
This legislation in it's present shape is
not only approved by the Commissioners Of
the District of Columbia. but has been
pending for nearly two months, and your
committee Is satisfied that 1t meets with
the almost universal approval of the public
This report is signed by the following
members of the committee: J. W. Babcock,
Sydney E. Mudd John J. Jenkins, David
II: Mercer, Samuel w. Smith, Amos L.
Allen. George A. Pearre, J. W. Wadsworth,
Edward Morrell, Spencer Blackburn Adolph
Meyer, A c. Latimer, Peter ]. Otey, James
A. Norton.