The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1907-11-25

Ec service is progress ne, but somewhat
slowly. The tendency OF the courts ia
constituting the laws aimed at the TGgu-
le tioH- Of public service companies seems
to be 10 consider the consumer only
after all other interests have been cared
for
Report Not Commented On.
This practice IS so common that no
special comment appears TO have been
attracted 10 the conclusions Of Auditor
Payne, who, under authority Of the Sd
preme Court Of the District, recently
heard the testimony in the petitions Of
the Georgetown Gas-Light Company for
authority to increase its capital stock
In the report Of his findings. the audi
tor quotes the act Of Congress. prevent
ing the 6as companies from issuing any
greater number OF shares than shall be
equal TO the actual cash value OF their
plants, and the necessary cost OF The
eXtentiOns or future engagements OF the
plants. he ind the term plant IN
ClUdes fixtures. machinery, tools, appa-
ratus and appliances necessary TO carry
on a mechanical trade or busineEs or a
mechanical operation or process ana,
reasonably enough. nnds that this should
include the land used by the company
IN It's business, and the pipes through
which the gas is delivered, even though
authorities are found 20 support me
corporation COunseIs contention. that
only the apparatus used IN the manufRc-
tITe of the products and the buildings,
should, under a strict construction OF
the law, be included.
Protection to Public.
when we find in the early portion
Of the auditors findings that he holds
It 10 be the intent OF the Legislature to
use the term plant as synonymous with
property OF a tangible nature and
promises TO include in his findings as
elements OF value the physical and
tangible property OF the petitiCning
company, we are led for a moment
20 hope, but these intentions appear to
be lost sight Of later aad the cOnclu-
sive findings are that Congress, n its
attempts 10 restrict the Issue Of stocks
against gas plants, had IN mind only
'anording protection to tbs public or in
dividUals dealing In or with the stock
OF the 1orpOrauOn-'
The auditor. therefore, concludes to
permit the company 20 capitalize the
franchises. good Will. and excessive
profits earned from excessive rates for
gas
Value Endangered.
The present tendency to prevent the
continuation Of excessive rates for pub
lie service Of all kinds, naturally en-
dangers the value of those securities
WHICH nave DceN S0iQ 10 the pubic IN
excess Of the real investments, and we
are confronted with the proposition OF
whether justice TO the holders of such
securities demands continuation Of ex-
tortionate rates for service, or whether
such securities shall be re9udlated in
the interest Of reasonable rates TO con-
sumers.
Quite recently we hav,s listened to the
CRY of those in danger c. losses because
Of intelligent attempts to correct abuses
Of vercapitalization. We are told
that the wrongs heretofore committed
must be overlooked, and we must con-
tent ourselves with preventing them in
TIE fUrTe.
I'VE have in Washington an excel
lent opportunity to prevent the issu-
ance Of many millions Of dollars Of gas
stocks, that have no cause for exist
ence other than the fact that the gas
companies have been permitted for many
years TO charge exorbitant rates for
gas. II the gas companies Of the Dis
trict Of Columbia be permitted 10 capt.
taiize their excessive earnings, as pro-
posed, wrong viii have been zone the
users OF gas, not Of this generation