The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1907-07-30
GAS CO. EXPERT
OFFERS TO BUY
FOR $65O,O0O
A. S. Miller, of Baltimore,
Makes Thomas Propo-
SitiOn.
He viii Purchase If Cor
poration Counsel Can
Deliver.

IF you can deliver the property to
me. I shall be glad 10 pay S650.OOO for the
Georgetown Gas Light Company"
This was the offer made 10 Corporation
Counsel Thomas by Alton S. Miller. OF
Baltimore. while on the witness stand
this morning, IN the second days ses-
sion of the hearing Of the petition Of
the Georgetown company to increase its
capitalization from $4,000 to 100000.
Mr.. Miller was the second star wit
ness for the company. While the offer
just mentioned was made in cross-eX-
animation BY Mr.. Thomas and Stuart
Mcnamara, for the Government. the
witness estimated ''the actual cash
value" Of the property at S625. 900 while
the cost TO reproduce would be $51s, 200.
Mr.. Miller testified to having large and
Intimate experience IN gas production
and affairs, at present being vice presi-
dent OF the Baltimore Gas and Electric
Light Company. He said he had made
a careful estimate Of the property OF
the Georgetown company, and explained
his conclusions to the Auditor by going
into the detailed figures OF his estimates.
Questioned on Values.
Attorneys Thomas and Mcnamara
tried to find how the difference between
the physical valuation and actual cash
value" was arrived at This brought
out the statement that the actual cash
value OF S625. 600 was arrived at inde-
pendently Of the physical valuation. that
the witness had made that estimate
simply as a matter Of interest he con-
q n
its possibilities OF expansion OF business.
which he estimated could easily be 259b
yearly. the gross earnings OF the COM
panv should be about 500. 900 on which
The net earnings should be $4,000. Capt.
talking this net ifISJme he had esI-
mated the amount which he thought
would be a fair purchase price
BENJAMIN WoOdT n, secretary OF the
Washington Stock Exchange, was
the hrst witness called by p Ross
Perry, at the hearing this morning Mr.
Woodruff had made an Investigation OF
the dealings in the stock OF the George
town Gas Light Company covering the
period from July ]. 1872. to July 1, 1907.
He showed the course OF prices and
the number OF shares traded in
While the volume OF trading had been
small uD to the latter part OF the spring
OF 1907, the prices were shown 70 range
from 62 to 50. the highest prices being
registered in the last months covered
by the report The par value was tes-
titled 70 be .. Corporation Counsel
Thomas asked the witness whether he
knew how much OF the capital stock OF
the company had been issued, 70 which
Mr.. Perry objected, stating that he
would produce Witnesses on this point
William b. Upton, a consulting en-
gineer of Washington, was then called
His testimony. which was conducted bv
r II. Goldsborough, bore upon the
value OF the real estate holdings OF the
company. he thought the site was the
best available for the gas plant and
worth fully the $4,000 set down IN the
estimate.
Stuart Mcnamara and Mr.. Thomas
brought out the statement that 8o0O tons
of coal per annum were used bv the
gas company and that the proximity 10
the canal meant a saving OF so cents a
ton, representing the practical value OF
the land so situated.
1t was also shown that the availability
Of an abundance Of water meant a great
saving OF coal in the manufacture Of
gas.
This Afternoons Session.
After recess Mr.. Randolph again took
the stand. The line Of questioning by
Mr.. Perry was to further show the wit
ness competency by putting on the rec
ord more facts about his experience. He
also showed that the Districts estimates
were S. per cent higher than his own in
the items covering cost Of gas pipes
In response to a question by Mr.. Perry,
Mr. Randolph said that his estimates
had been made Up practically from his
own experience although he had re-
ceiYed certain Information from officials
Of the gas company, which however,
he had verified for himself
His Method of Calculation.
An interesting feature Of the tesu-
mony Of Mr.. Miller was the method by
which he arrived at the value Of the
real estate of the company As In
William B. Uptons case, he estimated
that the annual saving in coal bills due
to the proximity Of the canal was sufh-
cient, when capitalized at 5 per cent. to
make valuation Of 500 although he
put 1t in his estimate at only $4,000.
Even though this item were entirely left
out Of consideration, he said in cross
examination, he would still consider the
property TO be worth $50, 900.
The price of gas was also touched upon
In the examination of Mr.. Miller. He
stated that the reduction in price had
! stimulated. and would naturally stimu-
late, its consumption, but would not ad-
nit that this increased consumption en-
tirely made up for the loss incident to
reduction in price He had based his
estimates. however, on a continuation
| OF Sl.00 gas, but also on the possibilities
OF the business greatly increasing
Other witnesses called 10 testify to the
accuracy Of the estimates made by MIR.
Randolph. as submitted yesterday, were
| Charles A. Langley, local builder, who
! had made the estimates on the COM
| pany's buildings; William Burnell. of the
| District government, to show the cost
| of gas main laying by the District as
being greater than those included in the
company's estimate; and Henry Dono-
van. a craftsman in the Sewer Depart
ment, who had made a map of the dis
tributing system of the company and
estimated its length.
A recess was taken at 12:30 o'clock un-
Ill ] O'Clock.
Stuart Mcnamara, attorney for the
Government. brought out the admission