The Washington herald., 1907-08-03
GIVES GAS Big BOOM
GeOrgetown's Hearing Sends
Up Price Of Stock.
JUMPS TO $500 PER SHARE
Figures Before June Is Ruled
steadily Around $S5-LeSaI Battle
over Light COmpany's Petition TO
he Resumed Tuesday Before Au-
ditOr Payne-Law Not Clear.

one effect Of the testimony brought out
in the hearing before Auditor Payne In re-
gard to the petition of the Georgetown
Gaslight Company for authority to in
crease its capital stock TO 100000 has
been to give the stock a boom. 1t has
gone up SIS a share.
During the hearing before the auditor,
expert testimony as to the value of the
Georgetown Gas Company's plant and
good will was introduced, and this seemed
to indicate that fair valuation was
about 100000 The secretary OF the
Washington Stock Exchange, Mr. Wood
ruff. testified that within period OF five
years only $40 shares of Georgetown Gas
light stock had changed hands.
This testimony was given July 30. On
that date 100 shares of the stock were sold
on the Washington Stock Exchange for
500 share. July %, twenty-five shares
were sold at $50. and twenty-five shares
at $50. Then. July 80 the price rose TO
500, and July 81. the last known transac-
ton In the stock. five shares were sold at
$50. There had been no previous sales of
the stock since June Is, when a few
shares were sold at So and $50 Before
that time the stock ruled pretty steadily
az SIS.
Hearing to BE Resumed.
The legal battle over the Georgetown
GaslIght Company's petition Will be re-
stunned before Auditor Payne. Tuesday
next. 1T that time an effort will be made
10 have the gas company furnish a state
ment Of its receipts and disbursements,
its running expenses, the cost of making
gas. and SO on. Whether this information
desired by the corporation counsel comes
within the scope Of this inquiry Is for
Auditor Payne to determine
1t is probable that so far as the legal
battle is concerned it viii be narrowed
down TO a construction Of the language OF
section . Of the biz passed by the first
session Of the Fifty-fourth Congress,
known as House bin 1894 This bill
was introduced by Representative Bah
cock. chairman OF the Committee on the
District Of Columbia As called up by
Mr.. Babcock. March 9. 1896. the present
section 3 Of the bill was not included,
and the bill passed the House without
debate. II was referred 10 the Senate
committee, and section containing mat
ter relating 20 increase Of issuance Of
bonds was added by the Senate commit
tee. This was section ..
May Mortgage Plant.
April Is. 1886. the bill was explained
by Senator Mcmillan. At that confer
ence Senator Allen said:
Il want TO call the attention Of the
Senator from Michigan Senator McMn-
lam 10 the bin for a moment I observe
in one section of the bill provision that
the company may mortgage their plant
upon obtaining ruling from the Supreme
Court Of the District"
Senator Mcmillan. THAT is to enable
the company 10 increase their capital
stock when their plant is increased
Section 5 Of the bill rs It finally passed
reads as follows:
That neither the Washington Gaslight Company
nor the Georgetown Gashght Company shall here
after Issue ans greater number Of shares Of STOCK
than shall be equal % the actual cash value Of SAID
plants and necessary cost q construction Of future
extensions OF future enlargement Of the plants
which cash value and cost q extensions shall hrss
be a5ceIaucd and authorized upon petition therefor
% the supreGs Court # the District Of Columbia
under such regulations as the chief Justice and the
justices thereof shall prescribe; also. il either %
said corporations shall desire hereafter % issue
bonds upon their property, secured by mortgage or
otherwise, ucn petition therefor % said court
ting forth necessity therefor and the amount Of
stock issucd and outstanding it mag be. and shall
be, lawful for such court. the chief justice or
justices thereof. the case may be. OF one q
I them. upon public notice. 90 BE- prescribed by the
rules Of said court. o. permit the issuance OF such
bonds and mortgages az desired.
Provided. That the amount Of stock and bonds L.
sued shall not exceed the actual cash value o. said
plants and the cost Of such extensions or enlarge
meuts Of plants
Section Not Clear.
It is in this section that the crux Of
the whole matter lies. In the petition Of
the Georgetown Gaslight Company there
is no statement or indication that the
pctitoned-for increase Of stock is for
the purpose Of extending the plant of
the company.
When the section in question was first
proposed by the Senate Committee its
language was clear. 1t read then: pro
vided that the amount of stock and bonds
50 issued shall not exceed the actual cost
Of such extension or enlargement Of
plant" thus making any INCREASE Of stock
contingent On actual work Of extension
AS the section came from conference it
read: Provided, That the amount Of stock
and bonds issued shall not exceed the
actual cash value of said plants and the
/ cost of such extensions or enlargement
of plant"
II is here that ambiguity lies which will
require legal Interpretation to make
clear.