The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-07-15
Commissioners and smear Gas.

Editor The Washington Herald:
As published IN your issue of Wednes
day last, the Board of Commissioners
of the District have answered my in
quiry as to what they propose to do
when Congress convenes. in regard 10 the
question of a reduction in the price Of
gas, and calling their attention TO the
recent voluntary reduction by the Boston
Gas Company to so cents per thousand.
They advise me that they propose 10
repeat their recommendation made In
January last, that the price be decreased
70 the lowest point consistent with a
fair profit TO the gaslight companies;
that they ARE Ia favor OF making the
price IS cents, If that win afford a fair
return" They add that they have not
the means of determining what would
be a fair return 10 the gaslight COM
panies: that Congress has the means.
This is as I feared when I made the
inquiry. There is 10 be a string to the
recommendation of the board. Who
doubts that the gas companies will be
able to show that Is cents Is an made
quate price? And what is likely to be
the result of the boards suggestion and
Invitation for another tedious and costly
investigation by one Of the District COM
mittees?
Here are some concrete facts that prove
the absence Of necessity for such an in
quiry:
First-The enormous dividends 10 the
stockholders of the companies.
SecOnd-The offer by responsible parties
years ago to, furnish gas for IS cents, if
given a charter.
Third-The price of gas in some other
cities where conditions are not unlike
those obtaining here The Boston com
pany voluntarily reduced the price to so
cents. CThink Of It! Voluntarily The
price in Cincinnati is 70 cents when the
gas is used as an illuminant, and 80
cents when used for fuel, That company
was glad to accept these prices years
ago, when its charter was about expir-
Ing. in return for twenty-hve-year ex-
tension.
However, it's no use to multiply words.
The fact s that the Washington Gas
Company is the absolute creature of Con-
gress, and is the most profitable monopoly
in the District of Columbia, or in the
United States for that matter, when the
relatively small capital invested is con-
sidered. The intention of the Commission.
erS 10 qualify their recommendation 70 the
committee by asking that the price be
reduced to 70 cents, if. and only If. that
figure viii afford a fair return for the
money invested. and inviting Congress to
assume the burden OF finding out whether
it viii, is not in the public interest It
looks fair, but is not appropriate under
the facts and circumstances of this case.
It would be all right in the case Of a
public-utility corporation which had dealt
fairly with the public and only charged
for its service or commodity a price
which gave a fair return for the money.
time, and talent invested. It is sadly out
Of place IN this instance and in my
opinion this public so believes, even if
they refrain from saying So
My conclusion then, is that the past
outrageous profits made by this eorpo-
ration, many times In excess Of the value
of its plant. and which outrageous profits
even Congress is without power to re-
cover, justifies short, sharp. and decisive
action by the creator Of the monopoly.
Let Congress decree 75-cent gas and
await the result. If this company cannot
furnish gas at that rate at a profit
another one can. No court would hold
the reduction unconstitutional when mil
lions of capital stood ready to take the
place Of the present company at the
new rate. And. too. the court would Ger
tainiy take cOgnizance of the past unfair
profits Of the old company. And even
II, by q miracle, ii should be found.
after couple Of years, that 75-cent gas
had not induced such largely increased
consumption as to enable the corporation
by wise management TO make or per
cent annual dividends. would il not be
easy for Congress to restore some of the
reduction? And even if the stockholders
should not get more than 4 OF 2 per cent
for these couple of years, would that be
confiscati0n Of their property?
" J. MORRIS.
Washington D. G.