The Washington times., 1907-12-10
Does Capitalization Have Any Relation to
Gas Prices?

Mr.. Justice Gould at the hearing of the Georgetown
Gas Light Company last Saturday propounded to Corpora
ton Counsel Thomas this very pertinent question:
''What has the capitalization of this company to do
with the price of gas7'
Two days previously that question had been
asked by Attorney R. Ross Perry representing the gas
nopoy, before the District Commissioners 'The question
of capitalization has earthly relation to gas rates.
gued the learned counsel.
Some fifteen years Clarkson Bros. published the Des
Mones Register contest waged for municipal own
ershp of water works The plant offered by the
pany for $2,6OOOOO and the Register urged that the
offer be accepted saying it bargain at the price
named The capital stock of the company but $780,
00O and the plant only supposed to be worth
much less than the $100O00 bonds against it. citizen
addressed communication to the Register asking how it
figured the plant worth $26OOOOO and received the prompt
answer:
Because it pays reasonable interest that vaua-
ton"
1t is possibly not pertinent to remark here that it was
disclosed few days later that the Register owned CO
stock of the waered company, entered thus the books
of the company:
''To Iowa State Register, for SOAP $50 OOO'
1t is to the point, however to show that when, under
the law permitting the city council to regulate the rates
for water rates reduced about 40 per cent the
ngs of the company and the value of the plant
duced, and the property offered to the city for
$85OOO0
of gas stock and afford to weigh carefully his as
that Congress- by placing this matter in the courts
for judicial determination, has placed it where it will
be decided free from prejudice and with the thouyh5 of
justice for al.''
Attorney Perry argued: Congress knew that what
ever Judgment would be delivered bv the Auditor would
be a dsnteresed professional honest Judgment and
knew that the decision of the court if called upon to con
slider the Auditors report would not be the of man
who could be influenced by public clamor public
clamOr which from time immemoria the honest man has
set in contempt"
What was Auditor Paynes Fdisinterested profes-
siona, and honest judgment'7 Here it is taken verbatim
from his report:
81 find purpose which is consistent with all the
provisions of the act and which is equally consistent with
desire the part of Congress benefit the public and
particularly that PART OF THE PUBLIC FOR
WHICH 1T WAS THEN LEGISLATING 1 MEAN
THE PURPOSE OF AFFORDING PROTECTION TO
THE PUBLIC OR INDIVIDUALS DEALING IN OR
WITH THE STOCK OF THE CORPORATION"
There is what the public is up against Everyone is
being cared for except the who pays the gas bills
This what the public may expect should Congress fail TO
suspend the initiation act asked by the Commissioners
Let have the rates for gas reduced and get prac-
tica demonstration of what capitalization has to do with
prices
Attorney John Daish in his brief filed yesterday has
called the courts attention to the relations of capitaza-
tion of the price of the product, as follows:
1.-The amount of this net income bears relation to the
socaed capitalization of the company It is one if not
the sole element which proposed investors consider for
knowing the par value of share of stock the number of
shares issued the present net income per annum and bv
ing in mind the rate of interest which he desires TO
ceve he easily place his value upon the share of stock
which he proposes to purchase