The Washington herald., 1907-01-31
FAIRNESS TO GAS COMPANY.
Has IL Been Fair I'm It's Treatment of
the Community

Editor The Washington Herald:
The Board OF District Commissioners
have made report to the House District
Committee OF the Madden 75-cent gas
bill They express themselves in favor
OF reduction in the price OF gas to the
lowest possible point consistent with
fair profit 10 the gaslight company. They
are in favor of making that price IS cents
If that VIII afford a fair profit 20 the
company. They state that from express
sions Of citizens at the hearing on the
subject before them, they are satisfied
this is the general sentiment Of the com
munity
The undersigned asks space TO say that
there are q few Of US who do not agree
70 this proposition.
II sounds very nice, OF course TO say:
We want the gas company 10 have a
fair profit for its commodity We want 70
treat il justly"
Why should this community be so
tender Of the interests OF the gas com
pany? How mas It treated the consum-
ers Of its product for a generation past?
Has 1t treated them fairly and justly,
furnishing gas at only fair and reason
able profit?
Had It done so. the position Of the Com
missioners and OF certain citizens and
labor organizations, who want TO be
shown would be approved By every right
thinking person.
II the gas company when il found that
! 81 gas TO say nothing Of the greater
I prices charged before the reduction to
/ 81 not only enabled reasonable regular
annual dividends or and 10 per cent 10
be paid its stockholders. but that 81 gas
also accumulated every few years an
enormous surplus (Which amounted 10
S-.50J.c00 three years ago)-lf. 1 say, when
1 the company was confronted with this
situation and before this surplus had ac-
cumulated. il had voluntarily reduced the
price. instead Of resisting all suggestions
I Of reduction and distributing the enorm-
+ Gus earnings 10 its stockholders, then. IN
/ that case. the attitude Of those who only
wan, 15-cent gas on condition that il viii
afford a fair profit 10 the corporation,
would be correct. and only ia that case.
Why should Congress want 10 he
sh0wn2 The owners of this. the most
valuable municipal monopoly IN the Dis
trict. have made By the high price ex-
acted for their commodity. not reason
able, fair, and just profits but outrageous
and unreasonable profits.
In view Of the premises my position is
that this corporation has no rights that
( Congress is especially bound 20 respect
and Congress should decree 15-cent gas
II within the next few years il can be
made TO appear that q cents Is not
sufficient price TO give the stockholders
a fair return. the price can be increased.
In the meantime, the stockholders have
already received their enormous dividends
and could well afford 10 furnish their
commodity for few years at loss.
However. ! have no fear that - cents
viii be found an unreasonably low price.
+ Conditions here and at Cincinnati are
nearly alike, and that community pays
/ but - cents per thousand for gas when
used for Illuminating purposes and %
cents per thousand when used for heat or
I power. / think this community would
+ be satisfied with the rates Of 80 and %
cents respectively. If Congress should de-
f cree different rates according to the use
10 be made When different rates are
/ charged for different uses, two meters
are required for each consumer, and for
this reason small consumers do not often
avail themselves Of the lowest rate.
/ IN conclusion. the company cannot be
I forced in a direct way u disg0rge its
/ ill-gotten gains. but Congress can take
cognizance Of the past and can decree
I 75-cent gas as an experiment. without
I waiting TO be shown.
I W. J. NORRIS