The Washington herald., 1907-01-11


ton performed upon him at the Garfield Hospital
month ago and is az present oar d lne CITY
reclpcTating hut has far recovered thereiron as
10 De expected to return 90 his duties here next
SANFORD y WHITwELL,
Assistant Secretary.
Mr.. Goidsborough stated that notwith-
standing Mr. Ormes illness, 1t was
thought that in order TO determine the
issues as to whether or not Decent gas Is
d reasonable proposition, the Commission
ers should know what it costs 20 make
gas.
Statement by Company.
He then submitted the following state
ment:
In response to your invitation on the
Sth instant 20 attend a hearing upon the
Madden bill to reduce the price Of gas IN
this city to 70 cents per 1000 cubic feet
please permit me TO say that the notice
is too short for the company properly to
present its case against the proposition.
The following facts. however, are respect
fully submitted: The Washington Gas
light Company is one Of the largest
manufacturing concerns in the District
OF Columbia. and makes and sells, under
strict government regulations a product
that is universally conceded TO be as
good as the best manufactured In this
country The price charged for 1t under
the existing law Is 81 per 1000 cubic feet,
the lowest price for which gas for any
thing like its quality is sold on the At
lantic Seaboard. It actually costs this
company over 6 cents per 1000 cubic feet
for labor materials, and other items OF
operating expenses 20 make and sell the
gas, as is shown by the appended state
ment Of the company's engineer
1T Is respectfully submitted that after
the payment Of the actual cost of over
81 cents. as stated above. the amount re-
naming applicable 10 fixed charges, IN
terest, and dividend accounts IS not un-
reasonable or excessive, particularly IN
view of the fact that almost all other
public corporations show larger per
centage of net gross per cent proilts
Tax Rate Higher.
IN connection with this beg 10 cali to
your attention that the company pays a
higher rate OF taxation upon its gross re-
ceipts and a much higher rate upon its
net earnings. than IS paid by any other
public utility concern in Washington As
soon as it can be prepared, the company
will submit detailed statement 10 your
honorable body clearly showing what are
its gross earnings and such other in
formation as may seem desirable In the
premises.
In comparing the cost of manufacture
and distribution Of gas in this and other
cities. il is believed that IL viii be only
fair 20 take into consideration the fol
lowing facts.
..Nashington is city of magnificent
distances, and the number OF consumers
and the amount consumed per mile on
main is very much less here than Iu such
cities as New York Philadelphia, Balti-
more. and Washington, where the pOpuia-
tion is inc0mparabiy denser.'
we have here concrete pavemeuts and
gr8uolithic sidewalks. which increase the
cost OF laying and maintaining mains and
house connections, and very wide streets,
requiring mains 10 be laid on each side
Of them.
Business l. Hazardous.
1T should be borne in mind that the
gas business is "A hazardous one-so much
SO that our plant cannot be insured. and
consequently We have 90 bear such losses
las may occur from fire. explosions. or
other accidents. The liability of such dis
asters is so great that the company is
Obliged to operate duplicate plants and
to be always prepared 10 repair any dam
age that may occur with the very utmost
cypeditiou Finally. lt is respectfully
urged that the reduction proposed would
practirulIv amount To ConrsCutiOn and "a
Fa "a
right to reasonabIe returns.
Mr. GoIdsborough also read the state
uent Of Engineer James q. ;. Mclli-
benny. 10 the effect that the cost 10 the
company for the past year was in excess
OF g. cents per 1000 cubic feet He was
then questioned by the Commissioners, as
follows
Commissioner Macfarland-Did you in
clude i'm this account for last year the
work made necessary by the explosion in
your works i'm Che southeast section?
Mir. Goldsb0roUgh Il don't know
whether We did or not, but il would make
very little difference That would be a
proper charge. for that is substitute in
the plant.
COMMISSIONS Macfarland-That illus
trates the principle
Mr. GoIdsborough-We carry no depre-
Of dcDrcciation account. but We carry
none out of current funds, but we make
good the losses sustained
Gross Amount 81, 100000.
Commissioner Macrarland-Can you
state the gross amount turned over TO
your office for the year?
Mr.. GoIdsborough-It would be slSoooo9.
Commissioner Macfarlaud-What are
the net receipts?
Mr.. GoIdsborough-I cannot say. The
expenditures have been about I.200000
for labor and materials and other proper
items and operating expenses.
Commissioner Macfariand-Is that your
total expenditure for maintenance and
distribution?
MI. GOldsporuugh-For maintenance
and distribJuon and all the proper items
OF operating expenses.
Commissioner Macfarland-lucludlng re-
pairs and substitutes?
Mr.. G3Idsborough-Yes sir.
Commissioner DIacfarland-Can you give
offhand the average amount expended IN
permanent bctterments, extensions cf the
plant. and other buildings?
Mr. Golds6orough-T could not state that
for the current year because / have not Il
in mind If it is necessary to know this
l will furnish il.
Commissioner Macfarland-Could you
give the total number of stockholders in
the company?
Have 900 Stockholders.
Mr Goldsborough-Yes sir; one thou
sand.
Commissioner West-One thousand indi-
viduai stockholders?