The Washington herald., 1907-02-01
ARGUE 75-CENT GAS
First Hearing on Madden Bill
by House Committee.
ANOTHER HEARING NExTwEEK
Representative Madden shows How
In Other Cities Gas Is Much Cheaper
Than In WashingtOn-ChicRg Com
paay Furnishing It at Practically
90 Cents-A Statement by Company.

The hearing before the House District
Committee yesterday on the Madden bills
for 75-cent gas and universal transfers on
the street railways Of Washington
brought out a full exposition of the condi-
tons Of gas-making.
The hearing was primarily called 20 dis
cuss the subject OF cheaper gas The ad-
dition OF the matter of railway transfers
resulted in random discussion of both
matters, without any determinate effect
on either question.
There was a full attendance Of the
members Of the committee. Mr.. George
T. Dunlop. representing the Capital Trac-
ton Company; Gen. HarUies Of the
Washington Traction Company; Mr.
Goldsborough and Mr. Hart. the attor-
neys for the Washington Gaslight Com
pany. and a number OF citizens were pres
emit
Mr.. Madden was the principal speaker
on the gas question and opened the dis
cuss!on. speaking for the most part from
prepared statement. He said
The washington Gaslight Company
was organized in 1S4s with capital Of
$4,000. August ?, 1852. this capital was
increased by authority OF law TO $4,000,
January 3, 1855. the oapital was increased
to 500 OO0 May "A. 500 to d.y)00o0. and
May %. 1872. to $4,000. From time to
time since then to 1888 the stock was in
creased in curiously irregular amounts.
as follows. 1873 So, 666; 1874, $50
l42: 1875. S6.376, 1876. S275.15S: 1877.
Sio5. 900: 1878. Sl23,3o5; 1879, $780,
1850. sl28. ESQ; 1851. &2gl5 1852. S236oo; 1853,
81 400 These total 100000 bringing the
capital up TO S2o)0-oo.
1T has been stated IN reports 20 Con
gress that the first 10000 was paid in In
cash, but upon examination Of the officers
Of the company It was developed that
their Information was based on inference
and hearsay.
Books Were Burned.
THE books OF the company showing the
money paid into the company and by
whom paid. including stockholders and
the disposition OF tin other words,
showing the financial transactions Of the
comnanv for eighteen years, 1855 to lS75-
were sold to a Philadelphia paper house
| for 500. 10 be used in the manufacture q
nant-. and thus the records Of the COM
many ve-. destroyed. II is admitted that
/ $4,000 Of stock was issued AT one time
without any payment Of money into the
/ treasury Of the company How much
moro no one has been able 70 discover. II
/ is admitted By the officers Of the company
/ that from its organization TO 1855 tt paid
] IN dividends to stockholders S6.2ol.al-.
/ list Of the enormously high dividends
/ paid was given In 1874 the dlNloeho was
/ 80 per cent -.....,
! '1The treasurer Of the company stated
/ in n letter to Mr. Samuel J. Randall, IN
I February. 1851. that FOR thirty-enss and
/ a half years the average cash ana STOCK
dividends has been l6.S per cent.
/ 1T was said IN the letter referred to in
/ 1851 that the probable near approach OF
! the advent OF the electric light for street
and house illumination has seriously al
fectpd the value Of gas works property,
and its final success must cause the own
1 ers some still further injury, should Il
/ not render their property almost value
I less. Under these circumstances the
/ board Of directors OF this company have
/ deemed IL a duty 20 the stockholders they
/ represent 10 prepare for this contingency,
and they have retained and invested
/ cash balance OF $3.50 000. 10 be held In re-
/ serve. TO enable the company 70 make
such additions to their works as will al
! lov. them TO reduce the price Of gas 10
! ia lowest point. both for Illuminating
and fuel purposes. in the hope that q
very large increase Of consumption may
/ compensate them for the outlay.
THE fear Of the electric light company
| evidently vanished In 1889. as had also
| the intention TO eXpend such money in
/ additions, so as to allow a reduction Of
/ the price OF gas TO the lowest point. for
! in 1883 this $4,000 and much more besides
/ was divided among the stockholders
/ Rates of interest everywhere through
/ out the country have gone down in the
/ last few years Dividends on capital In
vested IN every kind Of business have
/ been Tedu7ed. and II seems TO me that
/ this company should not expect or de-
/ mand that II should be permitted to
! charge forever the people of Washington
/ and the government Of the United States
a price for gas and gas service which
/ shall enable them to earn dividends so
/ much in excess Of other investments.
1T was believed in 1856. when the Sen
/ ate committee Of which Mr.. Spooner was
/ chairman reported on this subject. that
/ W0NlN
/ be a fair remuneration for those who
! we're interested in the gas business here.
/ The price Of gas has been reduced from
4 $50 10 81. The company has seemed to
/ prosper quite as well since the latter
/ price has obtained as it did before.
Lower Gas Everywhere.
The price of gas in large centers all
over the country Is being reduced below
] a dollar. The reasonable price at which
| it can be made and delivered, not taking
into account large bonded Indebtedness
is about 81 cents. If that be true. there
| is no reason why 1t should not be profita-
| able to furnish It TO the consumer at "a
cents
( Mr.. Madden pointed out the statement
Of the Spooner committee that the gas
| officials in making statements to Con-
| gress duplicated items of cost. as. for
| instance, the charge OF Is cents a ton for
handling coal which also appeared in
the wages account The SpOOner com
mittee, he said. had expressed the fear
that an examination Of the books of the
company would show the same facts as
to other items. Reference was made to
the testimony Of Mr.. Patton, of the Pat
ent Office, who had been once the man
ager Of the Harrisburg gas works, and
who said that gas was there made for
45 cents per Ices feet and sold for 81
The SpOoner committee placed distinct
value on this testimony, because Patton
had ceased to oe a gas man and could
tell the truth.
Mr.. Madden gave prices charged for
gas In other cities. At Birmingham
England, an average price of "a cents a
| thousand cubic feet is charged; at Brad
! ford. 50 cents; at Bristol. So cents; Dub