The Washington herald., 1907-01-11

value OF the outstanding stock?
Mr.. GOldsborough-Twent dollars.
Commissioner West-I mean in gross
Mr.. GoIdsborough-Two million six hum
dred thousand dollars.
Commissioner West-Does that include
stock certificates?
Mr. Goldsborough-No sir; there are no
stock certificates. but the total Indebted
ness is about g, 100000
Commissioner Macfarland-How is the
remainder of the indebtedness repre-
sented?
Mr.. Goldsborough-That is all repre-
sented by bonds.
Commissioner Macfarhnd-Are there
two or only one?
Mr.. GoIdsborough-Ther are $4,000 Of
bonds and $2.6OO.0O0 of certificates Of in
debtedness which IN effect are bonds.
Commissioner Macfarland-You are not
speaking for the Georgetown Gasltght
Company?
Mr.. Goldsborough-No. sir.
Commissioner West-The gross receipts
are 81 100000 and the gross expenses eX-
ceed 81. 10000. What is done with the
difference between the two?
Used to Pay Interest.
Mr.. Goldsborough-It will be less than
that ] was speaking in round numbers.
The difference is applied to the payment
of interest, dividends on the stock, and
making good any losses sustained during
the year.
Commissioner west-what is the
amount being paid by the gas company
in dividends?
Mr.. Goldsoorough-They pay 81 per
share.
Commissioner Weston the gross
amount?
Mr.. Goldsborough-They pay between
$4,000 and $4,000 in dividends and inter
est.
Commissioner west-Are these certifi-
Gates of indebtedness held by stockhold-
ers?
Mr.. GoIdsborough-They are held by
public consumers. the stockholders have
some: il is held mostly by the public.
Commissioner West-What was the rea-
son for issuing these certificates Of IN
debtedness2
Used stockholders Money.
Mr.. Goldsborough-Because the COM
pany has used from time TO time the
money Of the stockholders In betterments'
and il has increased capital
Commissioner West-Were they sold for
cash or given away?
Mr.. Goldsborough-They were issued to
stockholders in lieu Of moneys that had
been paid for betterments from time to
time.
Commissioner West-Did not the issue
Of those certificates Of indebtedness prac-
tically amount TO a watering Of the capt.
tai stock without financially merging into
the company
Mr. Goldsborough-No sir; the value
Of the property Of the company was very
largely in excess Of the capitalization
which was made many years ago, as
shown by the value Of the securities, al
though upon the face Of the stock the par
value is $50 The market value OF the
stock is and has been about $50
Commissioner West-What is the divi-
dend on the stock
MT. Goldsborough-Two dollars per
share.
ter on each share.
Mr.. GoIdsborough-Yes sir.
Commissioner BiddIe-Ten per cent on
the par yalue2
Mr.. Goldsborough-Yes sir.
Evan II. Tucker. president Of the
Northeast Washington Citizens Assocla-
tion. said that be had endeavored 10 Sc
cure information as 20 the cost of MAX
ing gas when the question was brought
before Congress ten years ago, but was
unable TO secure the right kind of infor-
nation from the gas company.
Same Old Argument.
when the gas bin passed in 1885, said
Mr. Tucker. 1T was upon "a compromise
adoprad which gave US p $40 rate for
I'VE wears. so that We really got 81 gas in
1901. At that time they advanced The
argument that 81 gas would be a coniisca-
tton Of their. business. but from the state
rents made to-day il would seem the
rnmpany IS stnl in @ Iourishing condition
whenever the reduction question is agi-
ta;ed tho company IS always prepared
with its 'condscauon' statement"
r. ". oyster. OF the Petworth Citizens
Association. said that he also had en-
deavored 70 secure some information
from the gas company relative TO the cost
cf making. &c. but was informed by or
hcials OF the company that such interma-
tion could not be supplied
according to the statements OF Mr.
Coldsbarough." said Mr.. Oyster, th'
present plant Cf the gas company couie
NOT ba duplicated for Slo.gO00l II was
b,lt from the earnings Of the company
b.sfdps the enormous dividend they haV,
mid to stockholders With regard to the
fact. "a AIr Goldsb1roUgh has stated. tha'
tho s. 100000 certificates of Indebtedness
were declared after consultation VIII th'
best legal talent it can be said thal
opiuions of this character can be OBTAINED
bv corporatious If they have the price, anc
the Washington Gaslight Company Ger
tainly seems to be well supplied viii
money.
Fear Cut in Wages.
/ II. Brinkman. president cf the Central
Labor Union. declared that while th'
organization he represented was In favor
of -5-cent gas. the question of a cui IN
wages. if such reduction was made, must
bc considered. The matter, Mr. Brinkmar
said. will be discussed at the meeting OF
the Central Labor Union Monday next
Attorney Wilton J. Lambert and Chapir
Brown also spoke I'm favor of await
ing further information from the gas com
many before irdorsing the proposed bill.
Among those who spoke on the bll
wore W. +. GUIDE, secretary OF the Pet
worth Citizens Association and secretary
of the Business Mems Association; W. 2
Armstrong. of the North Washington
citizens Association; W. A. II. Church
of the south Washington Citizens Asso-
citation; Z. J. +. MinniX, Of the Anacosua
citizens Association: a. +. Kinnan. OF
the Brookland Citizens Association, ane
". J. Howard. of the Petworth Citizens
Association.
At the conclusion of the hearing Com
missioner Macfarland said that any fur
tber information relating TO the matter II
tho form Of communications would be