The Washington times., 1907-10-07
PRICE OF GAS
IS MAIN POINT
IN CO. s SUIT
e. Il. TbomaS
Corporation c Guns Ell
Fights Attempt to Raise
Gas Companies
Capital.
e. II. Tbonas

That the price Of gas 10 the people OF
the District of Columbia is the vital
and important consideration involved in
the present application of the George
town Gas Light Company to increase its
capital stock was the principal conten-
ton OF Corporation Counsel E II.
Thomas In his argument against grant
Ing the petition, when the hearing be-
fore Auditor Payne was resumed this
morning.
In reviewing the legislation affecting
the two local gas companies, particular
Iy the act of 1896 under the provisions Of
which the present petition was brought,
Mr.. Thomas said:
The legislation respecting reduction
OF prices Of gas and amount Of capital
stock Is, therefore, inseparably con-
nected. and the manifest intent of Con-
gress tends to reduction in the price
OF gas, and not to its increase by al
lowance of increased capital stock, so as
TO require an earning capacity which
will forestan the reduction of the price
OF gas"
Higher Charges
In a word, his argument on this point
was that # the gas companies be al
lowed to increase their capital stock at
Will, without the proceeds OF such in
crease being devoted to extensions or
improvements. the price OF gas TO con-
sumers must necessarily be kept UP In
order to defray higher fixed charges In
the form Of dividends on large issues OF
stock.
The history OF gas legislation. he said.
had TO do with measures relating to the
reduction in the price Of gas. and pro-
fr,e fsF FfuF ct o1nr
by the two companies were always con-
sidered In their relation to the price of
gas in the District.
II submit" SAID he that Congress
never intended by this act 10 allow the
Georgetown Gas Light Company to in
crease its capital stock 50 as 10 pre-
vent Congress from making a reduction
in the Price OF gas.
In view Of the history of the legis-
laiion, Congress intended that the gas
light companies should not increase
their stock out Of individual earnings"
Records Cited.
Mr.. Thomas read from the Congress
sional Record and from reports of COM
mittees. showing that the reduction of
the price Of gas was the subject CT con-
sideration before Congress.
The main object and purpose of Con-
gress in passing the act under which
the gas company brought It's petition
was 20 reduce the price OF gas.
In the argument CT r. Ross Perry. for
the company, he sought to show that
The actual cost value Of the plant" as
basis for additional issue of stock,
meant the value of the plant as testified
10. Mr.. Thomas cOntended that this
WsS entirely wrong as far as this case
was concerned.
Plant Distinct.
He cited many cases and authorities
10 show that the plant was separate
and distinct from the rear estate, mains,
services. meters, and franchises. There
fore. in view Of this Interpretation, the
Georgetown company had failed to snow
that the plant was valued at as high
figure as the present face value OF
their stock, and there was no reason
or excuse for an increase in capital
stock, particularly as no extensions or
improvements are contemplated.
At 1880 a recess unSl l;50 was taken. |
Stuart Mcnamara, for the Government, |
began his argument after recess.