Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-10-31
Georgetown Gas Plant
Valued at S47O,777.3O

| The Georgetown Gaslight Company
might triple instead of merely doubling.
it's issue of capital stock if the valuation
of $40. III 30 placed on its pant by Au-
dtor Payne in his report filed today. is
accepted by Justice Gould. presiding in
Equity Court No Q The company Will,
however. be bound. 1t is stated. by the
terms of It's application to increase Its
issue of stock from sljO.0oo to $500, 600
only The additional S1T0.1i1.3D may be
allowed to stand as a cred on any fu-
ture application for an additional Issue.
Exceptions to the auditors findings
were made by Corporation Counsel
Thomas in behalf of the District Com
missioners Objections to Ger ain deduc-
tions were made by Attorneys r. Ross
Perry & Son. G. Thomas Dunlop and
r II. Goidsboroueh for the gas COM
pany Assistant United States Attorney
Mcnamara fled no exceptions with the
auditor to the report.
The line of argument adopted by the
auditor met with the approval of the gas
companys attorneys, it is stated, but
they objected that he did not follow IT
as far as to them seemed advisable They
claimed that his finding should have
shown the plant to be worth 100000 and
that he should have decided the title to
the consumers service pipes to be In the
company and not in the individual prop
erty owners served.
This latter claim has been made before
the District Commissioners in a brief fled
by the gas companys counsel attacking
the recent additional assessment of
SS9.396 for these services.
The Auditors Report.
Auditor Payne completed his report
several days ago and furnished draft
to counsel for the government. District
and the petitioner. After considering the
exceptions he today filed his report, which
he concludes as follows:
After careful consideration of these ex-
ceptions by the petitioner I see no rea-
son to change my fndings-on the con-
trary, I adhere to those set forth in my
draft report which l now adopt as my
final report"
Auditor Payne in his repora. which.
" tn the summaries appended. covers
Il irty-seven typewriter pages reviews
the history of the company since its in
corporation. July 20 1854 with :, capital
of S15n,03o, and details the pcadings filed
with the application to increase the stock
and the statements furnished by counsel.
An account of these appeared in The Star
during the taking of testimony in the
case. He adopts as the controlling theory
of his report Jhat Congress intended the
word plant in the act of June 30 1896
under which the proceedings are insti-
tuted, in its broad sense as synonymous
with property OF tansif nature.
Il find purpose says Auditor Payne,
speaking of the intent OF Congress. which
is consistent with a.! of the provisions Of
the act, and which is equally consistent
with desire on the part Of Congress to
benefit the public for which it was then
lesislating. | mean the purpose of afford
ing protection to the pub ic or individuals
dealing in or with the stock of the cor
poraton by establishing. underlying such
stock security in tha form Of property,
physical or tangible possessions of value
equal TO the par value of the stock issued.
IF this is accepted as the purpose of
Congress. it seems unreasonable to at
tribute to that body an iateTtion to ex-
cllIde as an cement of security the land
to which the buildings and machinery are
affixed. and which gives to them the
permanence and stability of hold prop
erty. So also as to gas ho,ders which
are affixed to the land. and the mains.
which are firmly planted IN the soil and
constitute the machinery or Conduits con-
Meeting the manufacture OF gas with the
point of use. The mechanical processes of
the company are not complete untli the
product is delivered Wlillla the reaCn oI
the consumer.
Consumers Services Excluded.
The consumers services. which COM
prise the pipes leading from the mains
in the streets or avenues to the meter
located in the house or property OF llle
consumer are dfsaIIowed ythe auditor.
These were claimed by the company as
an element of value of its holdings and
xara recently assessed by the District
for taxes to be computed on valuation
of $50 396. Referring to the action OF
the board of assessors, Mr.. i'dSne states
that assuming the board 10 represent the
while its act may estop
the gas light company from hereafter con-
testing the validity of the assessment and
Il NiIlsr t1Fa.lr0
title it should be remembered that the
marty directly interested Is the property
owner. who has paid for the entire cost OF
Dor and material employed in the con-
struction and installation of the service.
These property holders are not in
court and haye had no opportunity to
present their Claims he declares, and
however the District may be estopped
from denying the claim of the petitioner
to ownership of these services, 1t is with
out authority to admit away the rights
of the Individual"
The auditor proceeds to show that the
ownership of these services is in the in
dividual property holder, h" has paid
for the material and its installation, the
services are attached to his property and
cannot be touched by the company with
out his permission. From this he finds
that 1t IS more than doubtful if the cost
or value of these services can be treated
as security for either stock or indebted
ress of the company, which does not own
land in which these pipes are laid. Il
find. heretofore" he concludes. that such
Continued on Ninth Page)