The Washington herald., 1907-07-29
MONDAY. JULY %. 1907.
Gaslight and Capitalization.

The Georgetown Gaslight Company last
winter voluntarily reduced the price of
gas to consumers on the other side OF
Rock Creek from Sl.25 TO 81 per thousand
cubic feet. Hon. Joseph Weeks Bah
cock, chairman of the House District
Committee, claimed credit for this .e-
duction. He could see no valid reason
for a distinction in the price OF gas as
between Georgetown and the city proper.
Tie late W. Riley Decide. then president
OF the company. in discussing the reduc-
ton, said il was made in spite Of the fact
that it cost more to manufacture and
distribute gas IN Georgetown than in
Washington. The Logical conclusion in
the public mind, therefore. was that if
the Georgetown company could make a
20 per cent reduction and sIi get
good returns on its capital. the Wash
ington GasliEht Company-in view Of
statements made t0 Congress. year after
year, as 70 the relative cost OF manufac-
turing and distributing gas by the two
corporati9ns-t0uldw wei afford To make q
corresponding cut in price, thus giving
the people of Washington 75-cent gas. No
such corresponding cut however. came
about-voluntarily or invoIuntarily,
Perhaps the price of gas has nothing
10 do with the pending petition Of the
Georgetown Caslight Company TO Increase
its capital. The reduction Of a few
months ago considered in conjunction
with the move of to-day. may have no sig
nifcance at all The two things may
not be as irreconcilable as they appear.
Possibly it was a part of a well-devel-
oped business plan first 10 reduce the
revenue by % per cent and then in
crease the capital Frankly. we do not
know, though we await the hearing with
more than passing interest in the hope
that this singular point will be cleared
Up.
Mr.. Baker and NIr Mcnamara, we un-
derstand, are to represent the District
and the government at the hearing.
beginning to-day, before Auditor Payne
and we may expect on their part
the keenest vigilance to see that public
interest is safeguarded. Should the
Georgetown company succeed in increas-
Ing its capital. the Washington Gasught
Company-the parent concern-immedi-
ately VIII ask a similar authorization
The House. a few years ago. by over
whelming vote expressly forbade such
increased capitalization and peremptorily
ordered a reduction in the price of gas
Reasons may exist now which did not
exist then This is 10 be determined
Equitable treatment should be meted out
10 these and al other public utilities
always. but il should be borne in mind
in dealing with them that it is the peo-
ple-the many thousands Of gas consum-
ers-who have most at stake, and not the
holders Of gas stock.
The gas c0mpany's record is a most
unenviable one. There are chapters in
its history which at once explain why the
public invariably looks askance and be
trays lack of faith in the company's
good intention.
Of course It goes without the saying
that whatever the result Of the proceed
ings in court Congress VIII deal with the
gas problem again at the coming. session.
and deal with it efectuaHy. The idea Is
prepOsterous that Washington will go on
paying dollar for gas when other cities
are getting it for much less, and when
weIl-regulated public-service corporations
notably the Consolidated Gas Company
OF Boston-are voluntarily reducing the
price TO as low as so cents, and still earn
ing good dividends on large capital