Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-01-10
WANT LOWER RATE
FOR LOCAL GAS
Madden Bill Discussed at the
District Building.
PUBLIC HEARING TODAY
Attorney Goldsborough Presents State
ment in Behalf of Company.
INTERESTED CITIZENS RESPOND
Queries Propounded by the Commits
sioners Touching Finances and
Methods of Business.
Attorney Goldsborough Presents State
ment in Behalf of Company.
INTERESTED CITIZENS REsPONI

The Madden gas bill, which provides
for reducing the price of gas in the Dis
trict to 10 cents, was the subject or a
public hearing before the board of Com
missioners at the District building this
morning. More than fifty representative
business men and citizens of the District,
as well as representatives of the gas
company, We're present, and the subject
was discussed at length.
The first speaker was Attorney Colds
borough for the Washington Gas Light
Company, who stated that the notice
given of this hearing was too short for
the company to properly prepare and
present Its case, but an attempt will be
made, he said, to enlighten the Commits
sioners and citizens upon the question of
the cost of gas in the best way possible.
The gas business is a hazardous one"
Mr. Goldsborough said I'VE cannot get
insurance, and if reduction were made
it would mean the complete confiscatfon
of the enterprise. Our profits are already
very small. We could not reduce the gas
from it's present price of 81 per 1000
cubic feet. as it costs us more than 60
cents to manufacture and distribute gas.
We pay a higher rate to the District
upon our gross earnings and net receipts
than does any other public utility con-
Germ in the District of Columbia.
Gentlemen. could not possibly reduce
the price to 10 cents. Our books will show
that the high standard of gas furnished by
us cannot be produced and delivered to the
consumer at a less cost to us than 65 cents.
Therefore, you can see how little profit is
left. ! Will furnish detailed statement
to the Commissioners giving more Informal
ton and data than | can at present Off
hand
Rapid-Fire Queries.
During his address Mr.. Goldsborough was
subjected to rapid-fre questions by Com
missioners West and mcfarland pertaining
to the finances and the methods of business
of the company. In answer to some of these
questions he said that gross earning dur
ing a year is 81, SOO,0O and the total ex-
pense for producing and maintenance is
81 300 600. The surplus he said, Is used
for paying dividends and interest on out
standing debts Tie latter he said, amount
to s., G0O.0O0 which amount is out in bonds
and certificates.
well. how much is actually paid in div-
dends?" asked Mr.. West
1T is hard to state off-hand,' answered
the attorney but 1 believe it was about
$4,000.
Regarding this big outstanding indebted
ness you speak of, is any of that amount
watered?" asked Mr.. West.
"Of course not was the answer. 10
improve and extend our plant, and rather
than increase our capital stock we issued
these certificates of stock or bonds ana
are perfectly legitimate"
W. F. GUIDE, president of Petworth C1tl-
zens Association, the next speaker, in ad-
vocacy of the bill, stated that the gas COM
pany is not the only public utility corpora
ton In the District which should be subject
to strict investigation. All these companies
have mammoth salary lists, he said, land
it is an outrage that taxpayers have to
stand for them.
Il favor the bill and would like to see it
tod ha oil
I'VE should have justice from Congress-,
declared E. w. Oyster of the Petworth Ctt1-
zens' Association. The earnings Of this
company are sufficient for this proposed re-
duction Since the organization of this
company the earnings have been so great
that every improvement and extension OF
the plant, until its estimated value Is
$40 COG, COO was paid for without costing the
stockholders one cent. The citizens Of
Washington by paying excessive rates paid
for the building up of this big gas plant.
Alleged Violation Of Law.
This s., GOO, 600 Indebtedness is in violation
of the law and should be made null and
void 1t has destroyed old records of the
business and this was only done to cover
it's tracks. l doubt the statement made by
Mr.. Goldsborough that gas cannot be made
for less than sxty-tive cents. have asked
for information from foreign countries re-
garding the manufacture of gas, and so
far l have learned a private gas corpora
ton in Sheffield, England, is making stand
ard gas for thirty-five cents. However, we
don't expect any such reduction as this, but
do think reduction to seventy-five cents
very just, and you gentlemen should send
your approval to Congress.
I'VE don't know enough about the inside
of this company" he continued TT has
always worked in the dark and has taken
advantage of every point of law possible.
1t should be compelled to make reports and
show it's methods
E. H. Tucker, president of the North
east Citizens Association, said the reduc-
ton could easily be made, In his judgment,
and If a thorough investigation should be
made into the statements regarding the
cost of making the gas.
Several years ago. Mr.. Tucker said,
when the gas company was before Con-
gresS upon certain legislation, de-
clared then that to make gas for 81 was
impossible, and would result in the con-
fiscation of the plant, but we all know that
the Washington Gas Light Company is not
ruined yet, and its profits have been
enormous, and will be larger than you
imagine. 1 would suggest that the salary
roll Of the general officers of these COM
panies be investigated, as 1 believe they
exceed $4,000
At this point Commissioner West asked
Mr.. Goldsborough if he could state the
amount paid for the salaries of officers.
Il could not accurately say" said Mr..
Goldsborough, but l believe it is a little
more than $4,000. But if we should do
away with every salaried officer such an
action would not permit us to lower the
price more than 21s or 3 cents"
Advocates Rigid Investigation.
Thomas w. Smith of the East Washing
ton Citizens Association advocated a rigid
congressional investigation of the gas COM
pany and stated that he and his associates
were opposed to the Madden bill becoming
law until the public is fully enlightened.
He suggested that the Commissioners re-
port upon these lines.
]. F. Minnix of the Anacostia Citizens
Association the next sneaker smoke in ad-