The Washington times., 1902-04-15
DissentlngConnitteemen
File Report OppoS-
ing Proposition.
RIGHTS TO BE GUARDED
Assert That Object Is to Increase Cap
ital So That Dividends Are Small and
Reduction of Price OF Gas Will Be
Prevented.


Reduction of Price of Gas Will Be
Prevented.
Representative Sims of the House Dis
trict Committee yesterday filed minori-
ty report upon the bill providing for the
consolidation of the Washington and the
Georgetown Gaslight Companies.
The report, while favoring the idea Of
consolidation. takes exception to The
method of capitalizing the former cum-
pany. Mr.. Cowherd and Mr.. Stewart,
of New York, join with MIR. Sims IN the
report.
The majority report was submitted by
Chairman Babcock early last week. 1t is
signed by the remaining fourteen mem-
bers of the District Committee.
A Contest Anticipated.
1t is probable that there will be con-
test ca the floor of the House when the
measure comes up. although both the ma
jority and minority of the committee are
committed TO consolidation
The friends of the measure believe that
the bill will pass despite opposition 1t
will reduce the cost of gas in Georgetown
from sl.25 per l,001 to Sl.oO.
The minority report in part says:
We wish it understood at the outset
we have no objection to the consolidation
of the Washington and Georgetown Gas
light Companies nor do We object TO the
Washington Company increasing its STOCK
by an amount equal TO the present capital
stock CT the Georgetown company. nor Is
there any objection to authority being
given to the Washington Gaslight Com
pany to increase its manufacturing and
distributing plants as the needs of the
District may render necessary, but we do
most earnestly protest against the propo-
sition to increase the capital stock of the
consolidated company from Geo TO
SIS, $50, 000, an increase of S11 900, 000 un-
represented by a single additional dollar
in cash or property.
To Keep Down Dividends
I'VE assert that the proposed consolida-
ton is subterfuge and that the primary
object the company has in view is to get
cut so large an amount of stock that the
dividends on 1t viii be comparatively
small and Congress may thereby be pre-
vented from reducing the price of gas or
purchasing the works, should it at any
time hereafter SO desire to do.
"And we further assert upon the testi-
mony taken in former Congressional in
yestigations. that should this bill become
q law and the Washington Gaslight Com
pany be permitted TO increase its capital
stock to s13, $50. 900. as is provided for
therein, at least so per cent of such stock
will be water, represented only by the
franchise Congress has granted the ON
pany.
Rights to Be Guarded.
1--WE contend that in dealing with public
utility corporations. Congress should con-
tinually keep in mind the right Of the
people to obtain the service at the lowest
cost commensurate with a fair return
''f''--- nd Investment.
Investment in str,,-----no,,;o, sor- ~,
stand upon the same footing as the ordi-
nary business investment of capital in
private enterprises. The investor must
obtain from the publ ----s---,
use the property of the public and =
very nature of the business rs.osso,'
practically monopoly. For i9 I'll, 60
- . sho,,,s ho ii PUBIC serNic
,r,.,-,rili enable it TO put Il
-. j., ,,cb condition that 1t either car
sor rroner service or render 1t at
fair cost. ,o,,,,.r,, ;,s,,o To-,
-.uvah. of stock under the authority Q
Legislative enactment, and this stoc
int he iG IF bn1d
the company will demand the right to pa
dividends upon all such stock, and an
attempt to reduce the price of the com
modify will he met with the claim of ba
faith TO the investor.
Opposed by Commissioners.
I'm reporting upon a similar bill las
year, the Commissioners of the Distric
said: The Commissioners would stat,
that in a corporation occupying srch re
lations to the ~.-''it a. rha 'ra ~. ..--as.
4Ea .ar JGe public Htreop
.h+r rlE-4.-ats becomes 70 o. re-. -a3f
-rt r-. VI yll. .r conr~-c and as
sas -.t TO see
-..u..r .as COMMITS
- .a-. -be .r-. 5u1ald b..
rdsf Shoe ... --.sHgtn of the
"a. ne maintained We regret
the memory of the Commissioners is so
short they have already forgotten this
very wise suggestion.
"In the light of the history of the Wash
ington Gaslight Company printed in Con-
gressional reports, it seems somewhat re-
markable that the majority of the com
mittee should assert in their report that
no attempt has ever been made to water
the stock of the company. The company
now has outstanding 2,600, 900 of capital
stock. No officer Of the company has
ever contended that more than 81, 49,, $50
was ever paid in. We believe IL the truth
were known, it would be found that only
S42, 500 was paid into the company's treas
ury and all the balance of its stock repre-
sents profits drawn from the citizens Of
the District in addition to the large divi-
bends this stock has always paid"
History of the Company.
The report then goes on at considerable
length to give history of the company
and statement of its financial condition
In conclusion it says:
This bill has been pending before the |
committee since the beginning of this
Congress. Neither during the life OF this
Congress or the preceding one was any |
investigation made by the Committee or |
the District of Columbia as to what was |
the reasonable and fair price of gas in the |
District or as to what are the nresent |
profits OF the company at the price they |
are charging, or as TO what is the actual |
value of the property of the company on |
which they are authorizing an issue Of |
sl3. 750, 900 OF stock
THE statement OF the committee that
the company has authority under tba co3a |