The Washington times., 1907-12-07
Citizens of Tenleytown
Adopt Resolution for
Action by Congress.
Colonel MacVicar Tells
of Conditions in Other
American Cities.

That the citizens OF the District re-
quest hearing before the District
Commissioners, in order to present a
Plea for better and cheaper gas to be
considered by them I'm their Teoommen-
dations To Congress, was the motion
made and unanimously adopted at a
meeting of the Citizens Northwest
Suburban Association. in Tenleytown,
d. c., last night
Capt. J. Jay Morrow. Engineer Com
missioner one of the guests of the
evening, assured the association that
such hearing Will be given at a cate
convenient to the parties interested.
Quality Of Gas.
The discussion Of Tho quality and
price OF gas. and the attempts of the
gas companies % increase their capital
stock occupied the greater part of the
session.
DR.. John w. Chapel offered a resoIu-
ton advocating a reduction in the price
Of gas provided that II can be shown
that a lesser rate would produce and
yield fair return upon the actual val
ue OF the property Of the gas COM
panies. and that this showing be asCeT-
tained by proceedings n cour- as pro-
vided by law, or before an impartial
commission"
Col. John MacVicar, secretary OF the
League Of American Municipalities, who
Is conducting the fight against the
gas companies for The Times. pointed
out thai tie Commissioners are en-
deavoring 20 have the law placing the
responsibility upon the court repealed,
and are the urging that Congress take
the necessary action.
Want 75-Cent Gas.
The resolution was. therefore, amend
ed 50 as 10 favor a reduction In the
price Of gas from 81 to 20 cents.i and
to commend the Commissioners for
their night against the companies.
Mr.. MacVicar presented a number OF
facts and figures tending TO show that
the local gas companies are receiving
an exorbitant rate for their product as
compared with the price Of gas in other
cities.
The people Of Washington" said
Colonel MacVicar, cannot too closely
study the decision In the preliminary
courts in the suit OF the gas companies
OF New York city TO prevent the en-
forcement of a law providing tEat gas
should be sold In that city for so cents
per 1000 feet. for there is much IN the
! Gaze that has a bearing upon the gas
situation here.
New York Gas Fight.
THE gas companies OF the city OF
New York had for many years been
permitted TO charge sxOrbitant rates,
and they from time to time. without
let or hindrance, proceeded to issue
stocks and bonds far in excess OF the
tangible value Of the plants. though
the excessive rates permitted TO be
charged provided revenues for the pay
ment Of liberal dividends. so that the
securities Of the company found a ready
market and most Of the time were
above par. In due course Of time
movement was lnaugurated for a re-
I duction in rates, and though the at
torneys for the people found that 49,
000.OtO Of capitalization represented an
original investment Of S1l,25o,OOo, and
that the tangible assets OF the company
! did not exceed $4,000, 900, the court held
the company was entitled to a profit
upon its full capitalization.
The value Of public franchise Is
determined by its ability TO earn diVi-
dends The value OF che good VIII of
a public service corporation IS de-
termined by it's capacity to earn large
profits. Issuing stocks against such
values is merely playing both ends
unjust profits derived from the COM
pany's ability TO exact unjust rates for
gas Congress must be shown that the
monstrous injustices OF such procedure,
and the people OF Washington must
undertake to do the showing
Mr.. MacVIcar said also that the ques-
tion Of the pressure and quality Of gas