The Washington herald., 1907-02-07
Warm Discussion Before the
House District Committee.
STILL ANOTHER NEXT WEEK
Comparison Between Chicago and
Washington Gas Companies - Mr..
DunIsp speaks for the Capital
Traction Company and Opposes
Bin for Universal Transfers.

universal transfers failed TO exhaust dis
cussiOn, and the committee decided 10
give a third hearing next Wednesday
morning at 10 O'Clock. 1t was the inten-
ton 10 give al the time yesterday TO the
opposition to cheaper gas and universal
transfers, but Mr.. Z. W. oyster, who
desired to speak for the Petworth Citi-
zens' Association on both of these qUes-
tions, raised the point that the hearing
last week had been only in part occupied
by the friends of the two Madden bills.
and the opposition had half of that hear
ing and all of yesterdays time. The
committee, therefore decided to give half
the time next week 20 each side.
The first speaker was II. II. Darnelle,
former District assessor. who said he was
opposed to cheaper gas because prices
of supplies had gone uD, and. also, that
TO reduce it would cut the revenues OF
the District government Representative
Sims asked him what he knew about the
making Of gas, and Mr. Darneille said he
knew nothing
Then YOU are here opposing lower gas
because some people in business in Wash
iugton will not reduce the price Of eggs?"
asked Mr.. Sims.
Not just eggs" replied Darneille
y. S. Kinsman, president of the Brook
in the further course OF the hearing Mr..
Darneille had 20 admit that he had no
expert knowledge about gas or the cost
Of it,
land Citizens Association, said his assoc
citation had no information on making
gas, but there was "a desire that Congress
authorize an investigation that would get
the facts Representative Morreu said
that he should Try, when his resolution
for such an investigation was taken up,
to amend it so as TO put the inquiry into
the hands Of the Bureau of Corporations.
R. II. Goldsborough. representing the
Washington Gaslight Company, ad-
dressed the committee I'm direct reply TO
the statements made last night by Rep
resentative Madden. He $ id the sworn
statement furnished the committee by his
company gave everything about the cost
of making gas, and figured the cost down
TO a thOusandth of 81 cent and the cost
was 65 cents per 10lu feet. Differing only
as 20 facts, Mr.. GoldsbOTOugh said he
agreed with Mr.. Madden on general prin-
correct his position was unassiiabIe.
Price Independent of Capital.
All through his argument Mr.. Colds
borough held to the belief that capitalize
ton had nothing to do with the cost of
making gas. He took up the statement
that although the Chicago company had
S69@o903 bonded debt, it sold gas cheaper
than it was i'm Washington. and as the
Washington company had but S3.0l0.vl
debt gas should therefore be lower in
Washington. This had no bearing. as
there were companies shown in census
reports that had no debt. and vet their
cost Of making gas was as high as in
other places where there was large
debt. The prosperity of the Washington
company in the past had no application
TO the cost of gas at this time. The ques-
ton now. he thought. was what was ii
fair valuation of the company's property.
and what was fair rate of return. and.
finally, would the price proposed be fair.
Mr. Sims asked IL Mr. GoldsborougE
thought a District franchise had no value
according 10 The statement made by Gen.
HaTTies last week. Mr. GOldsborOugh
said be did not agree with Gen. Harries
misinterpreted- He thought that constant
attacks on District corporations had ia,
effect of frightening of finanCicrs. Mr.
BahcOcE called attention to the fact that
IL WAS not the clause IN charters giving
Congress the right TO alter. repeal OF
amend, as the courts had held that this
could be done even If the clause did no,
appear I'm charters Mr.. GOldsbor0ugh
said that taking the average market value
Of the stock of the company, the plant OF
tho Washington Gaslight Company was
worth az least Sl0,00J,1J0.
AIR Sims here asked a number OF ques-
lions ia regard 10 the issue OF certificates
of Indebtedness, and finally drew out tn,
admission that they We're in effect stock
dividends. They had been issued uueI
the legal right of the company to do so
and We're for the purpose of capitalizinl
tho plant of the company i'm bcttcrmcuts
Representative Meyer asked IF the certif-
Gates had not been issued in the way
they were because Congress had refused
10 authorize the doubling of the stock OF
the company Mr.. GoldsboroUgh replied
that an effort had been made before the
issue of the certificates to recapitalize the
company.
But the certificates were issued. wer,
they not, 90 circumvent the Congress ~
persisted MI Meyer.
mo, the company believed the money
belonged to the stockholders. We dom
hold that this issue affects the price Of
gas. II we had no capitalization at all We
would want a fair return for gas" replied
Mr.. GoIdsborough
Well asked Mr.. Sims, what is youl
purpose in keeping the certificates out
twenty years. 7 think. Does the com
pauy want to be i'm debt all that time
Doesn't it add TO the dividends without
having added anything 90 your capital?
Interest and dividends do not figure il
the cost of making gas replied Mr.
Goldsboroush
Mr.. Goidsborough went on to say thai
if there were "a thousand millions of Ger
tihcatcs out it would not add a mill u
the price of gas. Speaking Of difference.
between selling gas in Chicago and
Washington. following the comparison
by Mr. Madden. De said that the streets
Of Chicago We're easier 10 work I'm and
there was a demand for gas for manu-
featuring during the day. as well as the
night, and the summer demand was not
so low as here. Mr.. Madden had saiC
the capitalization ordinarily was from
s. 10 81 per loo feet produced Mr.
Goldsborough quoted census report.
showing the capitalization I'm gas com
panleS haG increased steadily Tor years
and was now at an average OF $3.50 pei
Loco feet
To Mr.. Sims question. Mr.. Goldsbor
ough said that 10 reproduce the plan
with its 10000 patrons and 400 miles o.
mains would cost probably $1,000 600 Mr.
Sims asked why the company had. &C
cOrding 90 census reports, consumed A.
co. eco gallons of water in 1900 and in $50
100000 gallons. The purpose of thi!
inquiry was evidently TO hint that tn,
company has of late largely Increase,
the manufacture of water gas. which il
Tar cheanar than coal eas NJ GnILs