The Washington times., 1907-12-15
Monopoly's Argument
Shown to Be Faulty

To the Editor OF The Washington Times.
What business Is It Of anybody, OK
cept the stockholders or the Gas Light
Company. how much stock is issued2
The public be d
This applies to the present position Of
these who desire to increase the caDi-
tai OF the Gas Light Company Of this
city, and avoid the reduction OF the
present price Of SI.OO p LOO for gas
The statement has recently been made
by those in favor of the corporations
and their present methods, that the
amount OF stock, which arc but pieces
OF PAPER OF no intrinsic value, has no
relation 10 the price Of gas, the real
question being. what is the value: II
makes no difference what the amount
Of stock IS.
II this IS true. then why issue ad-
ditionaI stock. If il makes no differ
ence. then why this effort on the part
OF the gas company 10 double the pres
ent amount Of stock II r makes no
difference. then the additional issue OF
stock would be vaIueless, yet II the
present excessive price Of gas could be
assured. does any one doubt that the
proposed additional 6 o0O shares Of stock
=
the par value Of IS per share. could be
sold for or er $4,000 cash the day they
are placed IN open market, even assun-
ing that tlere was no other capital
and that the present plant did not exist?
a single individual in the absence OF
statutory or treaty prohibition. an alien
enemy. owning one share Of the pres
ent $500 shares OF the Georgetown Gas
Light Company could. by purchasing
the entire additional 5000 shares. com
mand a majority vote at a stockholders
meeting, Gust the present president and
board Of directors and reduce the pres
ent price OF gas against the protest ana
votes Of the other 5.9g9 shares.
The right 70 issue stock IS a valuable
franchise granted and specified in the
charter, and is always a subject in
which the people, in whom primarily
rests the power which IS conferred by
the granting IF a charter, are always
interested.
Any corporation lawyer would n1tur-
ally advise = private corporation TO in
crease its issue Of shares OF stock,
as in general legal parlance. increase
its capital stock, as one Of the best
methods OF avoiding being defined, limit
ed. or restricted in any OF its vaIuable
franchises. or az in the present case, 10
avoid reduction OF the price Of service
rendered to the General Government and
and The Washington public.
II the amount Of stock issued makes
no difference, then it IS no offense TO
water stock" and any private cor
pOrauOn, Ike the gas companies. could
issue q million shares Of stock. Of a par
value OF 500 each. on 81 worth Of capt.
tai, AMI all laws that the capital stock
should not exceed the actual value. or
a specified number or amount are use
less.
II il makes no difference" why is
the amount Of outstanding certificates
Of stock always urged as a reason why
rates or charges cannot, in justice 10
innocent stockholders. be reduced. as the
corporation would then be unable to pay
dividends to the stockholders?
II IL makes no difference" why the
enactment of section g. OF the act of
June 6. 1886, Statutes at Large. PAGE 90
granting the Washington Gas Light
Company the risht to issue $500. OOJi
worth Of additional capital stock2
CITIZEN.
To the Editor OF The washington Times:
Help the cause along and give the
Washington Gas Company h Yours
truly.
ONO, c,r-r77-r-r>r,--, ,-,7-rr--,-,--