The Washington herald., 1907-11-06

Herald to reduce the price of gas from
the present exorbitant rate will be sue
cessful, was evidenced yesterday. when
the company formally applied TO the Su-
preme Court Of the District OF Columbia
TO increase its capital stock from s.. 800. 90
10 such an amount as shall be equal to
the present cash value of the plant and
its proposed enlargements."
In order 10 secure the sanction of the
court to thus increase its stock. the com
pany Will be compelled to lay bare its
holdings in the District the amount Of
its expenditures and what is more inn
portant, its earnings. In these figures.
Corporation Counsel Thomas. on behalf
Of the District, and District Attorney
Stuart Mcnamara. on behalf of the gov
ernment, will insist on the Washington
company furnishing the same informa-
tion that the Georgetown Gaslight Com
pany was forced to furnish, and thus, for
the first time in the history Of the Wash
ington Gaslight Company. the consumers
who have been paying the bills Will be
able to learn the extent to which they
have been for years mulcted.
The increase, it is calculated, Will be
anywhere from $5.OOO.OoO to SlOOOOO0e.
Division of Profits.
1t was thought in some quarters that
the officers Of the company, anxious as
they were to divide the profits. would
not care to take the public into its con-
ndence 20 the extent as required by the
act Of Congress TO increase its stock
But as the profit melon was ripe, and the
sentiment started by The Washington
Herald has been assuming large proper
tions il has been thought best 10 cut il
before the reduction: that will In all
probability. be ordered by Congress. de-
prives it Of some Of its Iusciousness.
The Washington Gaslight Company
last winter, in response 10 request for
information relative 10 the production Of
gas, furnished the Commissioners with a
couple Of sheets Of typewritten paper
containing matter which the Commission
ers' office boy could have easily secured
The Commissioners desired this infor1na-
ton in connection with their recommenda-
tion that gas be reduced 70 eighty cents
per thousand feet
In concrete form. the proposition Of the
company submitted 10 the court yester-
day. is to consolidate in the form of
capital stock the amount Of money, which
the people OF Washington have paid in
excess Of what their gas should have
cost them. and to continue in the future
TO pay dividends upon such consolida-
ton.
The wording of the application filed
Will leave open 10 experts to be sum
moned, the value OF the property. this
wording being that the court shall take
such steps "as shall be necessary for
the ascertainment by this court of the
actual cash value Of your petitioners said
plant. and such actual cash value having
been so ascertained, authorized, and ad-
judged, will, thereupon. authorize the IS
sue OF your petitioner of such additional
number Of shares Of its capital stock. OF
the par value Of $50 each. as shall, to-
gether with the S2,6O0OOO Of capital stock
now outstanding. be equal in the aggre-
gate to such ascertalned actual cash
value"
Paying High Dividends.
The Washington Gaslight Company
has paid dividends as high as 80 per cent.
and its present dividends are 70 per cent
per annum on its authorized stock of
S2.60O.OOO. On certificates OF Indebtedness
issued in 1903 amounting TO S2.sOO.OOO. #
pays dividends Of per cent per annum.
These certificates OF Indebtedness to all
intents and purposes are really stock.
and were issued without legislative or
judicial sanction, and the interest thereon
constitutes a fixed charge on the com
pany's earnings. Therefore. the company
has been paying not only 10 per cent in
terest on a capital stock OF s.. 100000. but
per cent on a debt OF S2,6O0,O00 Accord
ing TO figures compiled by a committee
of Congress. the company has paid some
OF the largest dividends of any public
utility corporation in the country. In
1874 the company paid dividends as high
as 80 per cent; in 1879, 20 per cent: in
1876, s. per cent; in 1873, Is per cent: in
1873. 10 per cent; in 1880. u per cent: in
1895, q per cent, and at the present time
in excess of 10 per cent
According TO the petition filed yester-
day, the company was organized in 1913
with a capital stock of $4,000. divided
into $500 shares Of so each. Up to the
present time 1t has increased its plant 10
an extent proportionate with the Increase
of population, paid enormous dividends,
increased its stock fifty times the amount
Of It's original issue-all out of surplus
earnings.
Sfgners of Petition.
The petition is filed by President John
Il Mclean. and was fled by Attorneys
r. Ross Perry & Son, r H. Goldsbor-
Ough. Wilton J. Lambert. and Edward
Mclean, the latter a son Of President
Mclean. 1t recites the petition is filed
by authority of an act Of Congress Of
June 6. 1896 and that the company was in
corporated by an act Of Congress of July
S. 1S4S, and its business is that of furnish
ing gas TO residents Of the District east
of Rock Greek. Continuing. the petition
recites the different acts of Congress au-
thoriZing the increase of its capital stock.
and recites the amount Of its capital
stock, 81, 600 900. outstanding bonds Of $500
600. and certificate of Indebtedness, 81
600.0O0
After these recitals, comes the Joke OF
the petition. as follows:
That the needs Of your petitioners
business require that in the immediate
future it shall construct extensions or en-
largements Of its said plant. by adding
thereto gasholders. by extending its work
at the east station and by laying such
additional mains as will meet the require
ments OF the District Commissioners and
the necessities Of the companys business
at necessary cost OF at least $3.50. .00O0."
As conservative estimates place the
value Of the franchise pts most valuable