Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-12-05
GAS ISSUE HEARING
Recommendation by Corpora
ton Counsel Discussed.
OPPOSED BY COMPANIES
Attorneys Take Exception to Action
by Commissioners.
DECLARED TO BE C0NFIsCATIoN
Statement by Commissioner Mac
farland, Explaining the Position
Of the District Authorities.
DECLARED TO BE CoNFIsCATIoN

The recommendation Of Corporation
Counsel Thomas that the Commissioners
request Congress to suspend section of
the act regulating the sale Of gas, thus
preventing the local gas companies from
obtaining a valuation of their properties
In any court, and from increasing their
capital stock was the subject Of a hear
ing this morning in the board room at the
District building.
The gas companies were represented by
r. Ross Perry, r. H. Goldsborough. Will
ton ]. Lambert and G. T. Dunlop. Cor
poration Counsel Thomas was present as
the representative Of the citizens of the
District.
Mr.. Perry's Argument.
Mr.. Perry commenced his argument by
referring to the efforts made last year to
urge Congress to enact legislation provid-
ing for cheaper gas. He said the Com
missioners reported favorably upon that
proposed legislation, and in doing so said
that they favored reducing the price OF
gas II the reduction could bring q reason
able return to the gas companies; that
they also said they had not sufficient
data at that time to say what the reduc-
ton price should be.
If the Commissioners have that data
now" NJ. Perry said, which they EVIL
IDENTIFY have or they would not be taking
this step, they must have obtained it In a
secret manner, as we have never been
questioned or considered in the matter
We have been given no chance to pro-
duce any evidence in our behalf
He then referred to the act of Congress
compelling the gas companies to furnish
annual reports containing every possible
N IN Nf1t,n o-r1fn hall t,,,,
and business. In enacting the law, Mr.
Perry said. which gives these companies
the liberty to petition the Supreme Court
of the District for a true valuation of
their properties with a view of increasing
their capitalization. Congress knew that
this method would be another means of
acquiring Information as to the true val
uation of these public utilities.
THE act was a sort of invitation to the
gas companies to petition the court, and
the companies have. within the past three
months. taken advantage Of this congress
stonal invitation and now you gentlemen
step in to interfere
Alleges Reason for "Clamor."
Mr.. Perry said the principal reason for
this "clamor,'' as he put it. for cheaper
gas. is the claim that the two local gas
companies have made too much money In
the past.
II this be the case" he said, II can
safely say these companies have made the
money legally and only under the rates
ss sen 1S ss fSot ;,s The popular view
entitled to any surplus and that the stock.
holders OF today should be punished for
prospecting and for the prosperity of the
stockholders Of half a century ago. This
Is not fair or reasonable and no reasonable
man should consider It for one moment. !"
Regarding the proposed suspension of
this act, which gives the gas companies
power to petition the court to increase
its capitalization, Mr.. Perry said: II sub
nit that there is no good reason therefor.
The Commissioners should. on the con-
trary. encourage judicial determination OF
| the valuation of these companies Counse.
for the United States and for yourselves
Gas Light Company that the valuation
was JUS, and no evidence was offered in
rebuttal. Why should you stop the de-
termination of the value Of the other gas
company, when 1t must come sooner or
later?'
District officials Respond.
Commissioner mcfarland. in replying
| to Mr.. Perry, said that the Commissioners
! have not recommended confiscatory legis-
/ lation as intimated by Mr.. Perry. and
that they have not fixed or recommended
any specific rate. I'VE have no means at
the present time said Mr.. mcfarland,
of determining what this rate should
| De.
Corporation Counsel Thomas, replying
briefly to Mr.. Perry. said the Commission
ers had no money with which to hire ex-
pert witnesses In the case, and that he
himself was not allowed sufficient time In
which to handle the matter properly when
It was being heard in court. Mr. Thomas
said he was of the belief that his presence
was not wanted at the hearing.
1T would be fair to the gas company
and the public" said Mr. Thomas. ito
postpone this matter Of determining the
valuation of the Washington Gas Light
Company's property. to see whether some
fairer manner Of evolving legislation can
be secured"
Mr.. Perry severely scored Mr. Thomas
for saying that he was not wanted at the
hearing in court.
| The arguments presented at this hearing
will be taken under consideration by the
Commissioner
Mr.. Macfarland's Statement.
At the close Of Mr.. Perry's argument
Mr. Mcfarland made a statement to the
effect that:
1.-The Commissioners will give full con-
sideration to the views expressed by at
| torneys for the companies.
AT your request" he said, I'VE did not