The Washington times., 1902-05-13

By vote OF 80 to 30 the House, in
Committee of the Whole yesterday agreed
to strike out the enacting clause in the
gas consolidation bill. This action ac
complished the defeat of the measure af-
ter it had been under consideration Tor
nearly four hours. and IL is thought that
it will end the movement to consolidate
the Washington Gaslight Company and
the Georgetown Gaslight Company, SO far
as the present session CT Congress is con-
cerned.
Vote 4 Surprise.
The result vas a big surprise to the
friends of the measure, particularly as 1t
was favorably reported by fourteen of the
seventeen members of the District Com
mittee. and had the Endorsement of the
District Commissioners and the City So
licitcr.
While the opponents to the bill had de-
clsred their intention of fighting it TO the
last, or particularly the capitalization
feature, the vote by which the bill was
killed was far in excess of what they
had ever expected. The measure con-
suned sc much OF the time of the House
that no other District bills were taken
up. although there are seven or eight on
the calendar ready for consideration.
Chairman Babcock of the District
Committee. took charge of the bill when
the fight was opened, but owing TO his
illness he was Obliged TO leave the House,
and Mr.. Jenkins undertook the response
bility for the measure. The opposition to
the bill was led by Mr.. Cowherd Of Mis-
souri,. who was aided. however, by Messrs.
Stewart and Driscoll of New York. Mr..
Sims OF Tennessee. and others.
The opponents of the measure occupied
the greater portion of the time in dis
cussing it. The cnly point attacked was
the capitalization feature, ali agreeing
that the consolidation of the two COM
panics WAS advisable.
The purpose of the bill was to permit
the Washington Gaslight Company to pur-
chase the plant and franchise OF the
Georgetown company. and thereafter to
increase its capital stock from It's present
capitalization at s2, 500 000 par value $50
a share, to its actual market value as
determined by its selling price for three
months after the transaction.
Meant Cheaper Gas.
The chief argument advanced in behalf
OF the measure was that il would give the
residents of Georgetown gas ut 81 per
LOCO instead OF Sl.25. as they are now
paying. and that ii would enable the COM
pRny TO capitalize its stock at its value
According to The statements made yes
ierday IL would have increased the stock
OF the company from $2,6od.ocG To slS.75O.-
600.
Before the House went into Committee
of the Whole to consider the bill Mr..
Cowherd. one of the members Of the Dis
trict Committee. who signed the minority
report opposing the plan of capitaliza-
tion prol ided for in the bill. asked that
the consideration of The measure be post
poned until next Monday in order that Mr..
Cannon might be present Mr. Cowherd
said Mr.. Cannon had taken a great inter
est in the question and wished TO be here
when Il was taken up, but was unavoid-
ably absent.
Mr. Babcock declined to yield TO the
request. He said he had been absent for
three months. and his duty to the people
now demandti that he press the bill for
consideration.
Company in No Haste.
M. Cowherd stated that the officers of
the company were in no haste regarding
the matter.
Mr.. Babcock's motion to go into Com
mittee of the Whole was carried, and Mr..
Haskins of Vermont took the chair.
Mr. Batcock explained the bill briefly.
He saiG it's objects were twofold, first 1t
reduced the cost Of gas in Georgetown
from s125 to sLO0 per thousand ieet: IT
authorized the Washington Company to !
buy the property and franchises of the |
Georgetown Company. II further author 1
ized, he said, the Washington Company to
increase its capital stock from s.. 500. 900 |
to the market value of the stock or the |
property Of both companies.
Capital Stock of the Companies.
The capital stock Of the Washington |
Caslight Company is $4,000. 900. and the |
Georgetown Company is $4,000, and the |
provision in the bill. Mr.. Babcock added. |
limited the capitalization to the actual !!
value Of the stock. This. he said, was all !
the bill proposed TO do.
Mr.. Crumpacker asked how the actual
value was to be ascertained.
Mr.. Babcock said il was to be ascer-
tained by the average market value for
three months.
Mr.. Ray asked IL the present value OF
the stock was not based upon the earn
fngs Of the company. Mr.. Babcock said
II YVES. Mr.. Ray wanted to know If the
price OF gas was not in excess OF what
II ought TO be. Mr. Babcock in reu1y. de-
clared that Washington had the best gas
made In any OF the Eastern cities. at a
cost. and that he had heard
Of 10 complaint.
Organized Years Ago.
"T.is company was organized in Isis."
continued Mr.. Babeock Since that timo
il has earned money and accumulated
money that has never been represented in
stock. Today its stock amounts to only
s., COO. coo. ] ask the gentlemen TO COM {
pare these figures with corresponding ,
stock in his own State, and in the cities ,
of his own State. and the capitalization
of the stock OF companies there. This ,
has been legitimateI conducted business !
corporation from the time that il was or ,
ganizcd, and the price Of gas here in the !
ity Of Washington has gone down from
$50 per thousand TO 81 per thousand"
Mr.. Ray contended that the bill simply
iroposed 20 create a gas monopoly and
o water the present stock in the ratio 4
4 TO without the company adding any !.
hing TO the plant.
Mr. S,..crt. a member OF the District
Committee, made vigorous attack upon
he bill. He said he was In favor of con- =
but opposed to the capitaliza-
Ion feature. He declared that the com
nittee had never had a hearing on the
MEASURE. and had not given II more than =,
orty-1ye minutes consideration.
No one had ever given good reason.
II.