The Washington herald., 1907-07-31

pert Considers Valuation Moderate
The Georgetown Gaslight company, pc
titioning for authority TO increase its cap
ital stock from $4,000 to $500. OO0 closed
its case yesterday afternoon before Audi
tor Payne, in the court of Justice Gould.
The case is now adjourned until to-mor-
row, when the people, represented by the
corporation counsel and Assistant United
States Attorney Mcnamara, viii present
the other side of the case and will pre-
sent the law TO the auditor.
The sum Of the testimony offered by the
Georgetown Gasllght Company is to the
effect that the plant physical features,
and good will of the company-not in
GLIDING a franchise, which cannot be con-
sldeTed as exclusives worth consider
ably more than the 10000. to which
amount the company desires to increase
its capital stock. Indeed. the testimony
would go 10 show that the valuation is
somewhere about 100000: one witness
placing it at $4,000 and saying that If he
had chance 70 purchase it for $650. 90 he
would be glad 10 do so.
The best witness for the petitioners was
Alden S. Miller, of New York. an expert
gas engineer, who declared that the
Georgetown GasIight Company ought to
be making and selling 100000 cubic feet
Of gas a year. which, at 81 per 1000 cubic
feet, should show a net profit OF $40O60.
This net profit, capitalized at per cent,
would represent capitalization Of $780,
900.
Sale of Stock Recorded.
The first witness yesterday morning
was Benjamin Woodruff, secretary Of
the Washington Stock Exchange. He tes-
tilted that at the request Of the George
town Gasllght Company he had made a
record of the sales Of that company's
stock. He read list of all transactions
IN the stock, and his list was accepted
as authoritative.
Mr.. Woodruff after showing the sales
OF stock for period of five years. testi-
fed that the total issue Of stock was
$l50.000, and that its par value is SIS a
share The surprise of Mr.. Woodruff 5
testimony was the showing it made Of
the small number Of shares which have
changed hands In five years The total
shown was only 376 shares
The next witness was w. B. Upton.
consulting engineer for seventeen years
IN Washington. He testified that no had
a general knowledge Of real estate values
in Washington He thought that the
plant Of the Georgetown Gaslight Com
pany was very favorably located. He
testified that on account Of the location
Of the plant adjacent TO waterways it
saved at least 50 cents on every ton OF
coal used
On discrimination by Mr.. Thomas
the witness was not allowed to testify
as 10 how many tons Of Goa. was re-
quired to manufacture the &,000.000 cubic
feet of gas sold annually to the George
town Gaslight Company. Counsel for the
company admitted. however, that the
company used 5000 tons a year
on redirect examination the witness
declared. Il think the location OF the
Georgetown plant Is simply ideal"
Not Valued Too High.
Alden S Miller. gas engineer, was the
next witness. It took him half an hour to
tell all that he had done as an engineer,
and how many kinds Of presidents and
directors he was. He was provided with
a schedule of valuation, similar 70 that
which had been used by Engineer W. w.
Randolph. According to his estimate, the
value of the Georgetown Gaslight Com
pany's plant is $625, 900.
His figures in detail were In practical
agreement with those testified to on the
previous day by Engineer Randolph. Il
should be very glad to buy the plant at
that figure" he said.
On cross-examination, he testified that
the present earnings Of the company
were a bad test OF its value. as they
could easily be increased . per cent BY
skillful management.
Why" he said, even II the real estate
Of the company was not worth a cent. the
going concern would still be worth
$625.000 The real estate is not material. "
He had, in his estimates, treated the
Georgetown Gaslight Company as If II
occupied the territory alone If another
company We're TO be started It would. OF
course, affect the value Of the property.
He figured the earnings of this company
for the present year as $4,000. The re-
ductiOn Of the price of gas from Sl25 70
81 had greatly increased the consumption
of gas. II the company went on as It
was now going the reduction in price
would result in selling 10 per cent more
gas. If broader methods were adopted
the increase in consumption could easily
be raised % per cent year.
Before he left the stand Mr. Miller was
induced to state that the capacity Of the
present plant of the Georgetown Gas
Company was 100,0o0,OOO cubic feet of gas
a year, which, at 81 per thousand.
showed a net profit of $4,000. This net
earning. capitalized at per cent, repre-
scented a capital of S7O0000.
When asked why, if the plant is worth
100000 he had valued 1t at S625, 900. the
witness said that that figure represented
the mean difference between the COM
pany's fullest capacity and the physical
value Of the actual plant.
Value of Buildings.
G. A. Langley, master builder, testified
as to the value of the Georgetown Gas
Company's buildings, the division house
stable, pump house, Office building. and
50 on; all of which he valued at S4S.774
William Burnell, accountant, testified as
to the cost of laying gas mains, verifying
in the main the testimony given by En-
gineer Miller
Henry Donovan, draughtsman ef the
sewer department OF the District, testified
to the accuracy of a map. drawn by him.
self. showing the Georgetown Gaslight
Company's gas mains.
w. w. Randolph was recalled by the
petitioners TO go more into detail as 10
the figures he gave the day previously,
especially with regard to the cost Of gas
mains and their laying.
He testified that his estimate as to
the total value of the Georgetown gas
plant was a reasonable one, and that the
District governments estimates of the
value were. in many cases, 60 per cent