Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-04-29
MADE ADVERSE REPORT
BILL PROPOSING REDUCTION IN
PRICE OF GAS.
Only Three Persons Favored It at
Public Hearing Given by Dis
trict commissioners.

In the closing hours of the session yester-
day Senator Gallinger, from the committee
on the District OF Columbia, submitted In
the Senate an adverse report on the BILL
Senate 3042, proposing a reduction In the
price Of gas and an inquiry into the alleged
issue recently Of certificates of indebted
ness to the extent of 81 COO 600 by the Wash
ington Gas Light Company, in supposed
violation of the charter privileges.
Little Dissatisfaction Revealed.
1.-THE BILL" says the report, was referred
to the Commissioners of the District OF
Columbia for examination and report. and
in due time it was returned, the report up
on the same being hereto annexed. A care
full examination of this report discloses the
fact that the Commissioners, Immediately
upon the receipt of the bill, issued to the
people of Washington full and timely
notice that they had ordered hearing to
be had on the bill at a public meeting
called expressly for that purpose. at which
the company and all the consumers OF
gas in the District were respectfully in
vited to be heard for or against the
measure The Commissioners further say
that the meeting was duly held and only
three consumers appeared to recommend
the passage of the bill, and that neither the
Washington Board of Trade nor the Busl-
ure nor has 1t been commended by any OF
the Washington newspapers. The commit
tee are therefore constrained to believe
that those who use gas in the District OF
Columbia consider the price reasonable ana
the service satisfactory. The truth seems
to be that in no city in the country Is a
better quality of gas manufactured than IN
Washington, while the existing price is
certainly as low, If not lower, than in most
other cities. The candlepower is fixed by
the appropriation act at %, while in Boston
1t is but 16, and the average throughout the
country is 20. In England 1t is much below
20, notably in the city of London.
your committee further report that an
inquiry satisfies them that the so-called
stock bonus was in reality an issue OF GER
tifcates of Indebtedness, which issue was
made upon the advice of eminent counsel,
including such firms as Hornblower. Byrne
Miller & Patten, Guthrie, Henderson &
Steel. and Sullivan & Cromwell of New
York city, who were certainly removed
from the sphere of local influence, and
whose legal conclusions must have been
unbiased.
THE officers of the company state that
It's capitalization Including this issue OF
certificates) is not more than 80 per cent OF
the actual value of its property, as shown
by the amount of taxes levied, by the mar
ket value of it's securities, and by an I'M
partial appraisement made by the experts
who were totally disinterested in the result.
But, however that may be, 1t is clear that
there is public demand for an investiga-
tion and hence no necessity for keeping the
matter longer before the committee
Report of Commissioners.
The remainder of the committee report Is
given over to a copy Of the report of the
District Commissioners on the proposed
measure. In this report the local authori-
ties say:
THE Commissioners have the honor to
report that they favor the lowest price for
gas in the District of Columbia that will
afford a reasonable profit to it's producers.
but that they are unable, without entering
upon an extensive investigation, to say
whether the reduction in price proposed by
Senate bill 3042 is reasonable and just.
THE Commissioners feel that an investi-
cation of this character should be made by
Congress rather than by the Commission
ers. If the conditions under which the So
called stock bonus of 100000 mentioned
in the preamble of Senate bill 3042 was is
sued are to be made the subject of thor
ough inquiry it will necessitate sending
for persons, books and papers; while to
elicit the facts to the present cost Of
making gas, the amount furnished to con-
sumers and the profits resulting therefrom
will require expert judgment on the one
hand and full and frank statements from
the officers of the gas companies on the
other. The Commissioners have no power
to compel the testimony of the necessary
witnesses or the production of the neces-
sary papers. Some information has al
ready been obtained by the Commissioners,
but it is not sufficient to warrant them In
giving a definite report on this particular
bill
The Public Hearing.
"At a public hearing held by them on
January 20, 1904, after due preliminary an
nouncement in the daily newspapers in
Washington land afterward fully reported
in them), only nine persons appeared, and
of this number six were officers or stock
holders of the Washington Gaslight Com
pany or the Georgetown Gaslight Com
pany, protesting against the legislation.
The others presented individual arguments
i'm favor of some such legislation as the
bill proposed. Since then six communica-
tions have been received from individuals
in favor of such legislation, and protest
has come from the president Of the George
town Gaslight Company and one from the
secretary and treasurer Of that company
against it, together with one communica-
ton from an individual unfavorable to IT.
Neither the Washington Board of Trade
nor the Business Mems Association has ad-
yocated the measure nor has 1t been COM
mended by any Of the Washington daily
newspapers. One of the citizens associa-
lions has passed resolution asking that
the proposed bill be enacted into law and
submitted copy Of the resolution to the
Commissioners.
THE statements made by some Of the
advocates and some of the opponents of
Senate bill 3042, as to the cost of making
gas are so contradictory that they cannot
be reconciled, and it is impossible to draw
satisfactory conclusions from them with
out a prolonged examination, with the as
sistance of experts. for whose employment
the Commissioners lack the necessary
funds"