The Washington times., 1906-05-20
DIVIDENDS ENORMOUS,
10T0 65 PER CENT A YEAR
CcontInued from IS Page.l

statement the subcommittee asked the
company for facts concerning its bust
ness. but was denied them. The COM
pany claimed that eminent counsel sus-
tained the legality OF the issue OF GER
tificates, but these opinions were not
presented TO the committee
These certificates. 1t Is stated. We're
placed on the Washington stock ex-
change. and have been sold as high as
I22. 1t is suggested that they may be
falling into the hands Of innocent fur-
chasers. who could not force the cum
psny 10 redeem them II il should re-
fuse TO do so.
From ali the facts it could obtain he
subcommittee of the House District
Committee in the last session con-
cIuded:
/. That the company did not secure
from Congress authorization for an in
crease Of its stock
2. That Congress hid provided in what
manner. BY a judicial proceeding. the
company might increase its capital
5 That Congress had provided the
manner in which, by a judicial proceed
ing. the company might incur an in
debtedness.
(. That without resorting TO the law
or judicial proceedings governing it. the
company did issue these 100000 OF GER
tificates of Indebtedness. which are ultra
wires
8. That these are being sold IN the
same manner as the company's stock
6. That the issuance OF them and their
distribution is not only an attempt 10
evade the law. but is actually repug-
nant 20 such law.
For these reasons the subcommittee
recommended that the bill pass. II did
not do so. and in renewing the attack on
the certificates the assailants have this
time gent the matter to the judiciary in
stead OF the District Committee.
Increase of Capital Stock.
The gas company was organized in
1s4S with $50. 600 capital. OF which S42.5OO
was paid and the rest distributed to
subscribers as a bonus. In 1866 the cap
ital was increased to S50O.OO0 In 1872
il was again increased to S700.O00. From
1913 10 1883. inclusive, the stock was an
nuaIly increased iu some amount. MAX
ing it, by 1883, $4,000. In 1894 the COM
pany had 100000 OF certificates OF In
debtedness held by stockholders and
representing earnings OF dividends.
Stock was issued to holders of these
under the act Of 1896.
In the Fifty-seventh Congress a bill
was introduced to enable the company
to consolidate with itself the George-
town Gaslisht Company, and to increase
its capital. On this subject the COM
mittee reported a substitute bill; there
was also minority report, opposing
this substitute The bill as reported Oh.
r. 13405) authorized the company~to in
crease Its capital to SIS, 80 900. and the
minority took its night to the House
floor and there defeated the measure
IL was subsequent to this. and to the
adjournment Of that Congress. that the
company proceeded to issue the certih-
Gates of Indebtedness that are now
brought in question.
In the next Congress the effort was
started TO have the Legality of these
certificates determined, and the Dis
trict Commissioners were asked by the
Senate committee to make a report an
them. The Commissioners replied that
they had no power to send for persons.
books, and papers and compel testi-
mony. and, therefore, that they could
not make such an investigatin. It has
never been made, and Mr.. Adams and
his hackers propose TO have IL now, if
possible.