Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-01-31


remuneration for those who were Interested
in the gas business here. The price OF gas
was then reduced from 81 so to s1O. The
company has seemed to prosper quite ,nas as as
well since the latter price has obtained as
1t did before.
The price of gas in large centers all
over the country Is being reduced below
a dollar. The reasonable price at wnicn
Ii can be made and delivered, not taking
into account a large bonded indebted
ness, is about 81 cents If that be true
there Is no reason why 1t should not De
profitable to furnish it to the consumer
at - cents.
The Spooner committee in 1888 said
that the statement of the items of wages,
salaries repairs and expenditures MADE
by the company contained Implications
and expenditures not proper to be con-
sidered elements in the cost OF gas
The committee was not satisned WIN
the testimony as to the cost of coal The
committee reported that the investiga-
ton developed that in the coal account 10
cents a ton for handling after delivery
was figured as element in the cost OF
gas and that the same item was also IN
cluded in the wage account Inc commit
tee feared. after having made TINS as
covery, that an examination of the BOOKS
and vouchers would reveal the same facts
as to other items.
"Mr Patton. who was in the service of
the government in the patent office In
1856 testified that he was for years gas
engineer of a water gas company at Har-
risburg; that he made gas by the Lowe
process
cents thousand cubic feet and charged
for it to consumers at 81 a thousand
cubic feet.
ut may be interesting to note the prices
charged by some of the foreign companies.
AT Birmingham. England. an average price
of ~ cents thousand cubic feet is charged;
at Bradford, 60 cents; at Bristol, % cents;
Dublin, 90 cents; Glasgow, 81 cents; Leeds.
Al cents; Liverpool, 66 cents; London. "a
cents Newcastle, 10 cents: Nottingham, "a
cents. and Sheffield. 4S cents. The average
for sixteen companies Is 6i cents. me
average candle power is 1916. This Is the
selling price. OF course the conditions are
different. the principal difference being IN
the cost of labor. which is much less at the
place of location of these companies tnan
in this country.
Since 1888 the capital of the company
has been increased from time to time out
OF the earnings of the company. and the
dividends have been continued at the rate
of 10 per cent annually, as well as oc-
casional extra dividends for large amounts
which have been declared at different times
The earnings of the company nave Deeh
phenomenal 1t Is not claimed by anybody
that the capital represents much Of any
thing but earnings.
According to the testimony of Mr.. Nc
Lean. president OF the company in 1898.
the gross receipts were A,133,3D.6O. the
expenditures exclusive OF DIVIDENDS ana
extension of works, s6Sl ,2lI.ol leaving a
net earning of S4Ji.02S.03. Deducting from
this net earning S2Oo,GC0, a dividend OF 10
per cent on the capital stock. there Is left a
surplus of $254 .02S.03. and deducting from
this surplus SS9, 800 invested in the extension
of the wor s. there is left net surplus
of si64, 5.S.OS. That Is but fair sample of
the prosperity of the company from the day
of its organization.
Dividends Have Continued ard Sur
plus Has Grown.
Since the price of gas has been reduced
to dollar the dividends have continued
and the surplus has grown, as I am adj
vlsed, until 1t seems that there can be no
doubt of the propriety of asking reduc-
ton in the price to be paid by the con-
sumner to IS cents.
THE city of New York recently reduced
the price off gas to so cents a thousand feet
after most careful investigation as to it's
cost. and the city of Chicago reduced it to
So cents. At the time the price of gas was
reduced to 50 cents in Chicago the COM
pany reduced it's dividends from 6 per cent
to ) per cent. The last declaration of divi-
dends was at the rate of per cent, show
ing that the earnings of the company had
not been materially affected by the reduc-
ton.
The price of gas at So cents in Chicago,
with the enormous bonded debt in addition
to a large capitalization, is much less than
Is cents would be here because of the fact
that the company has no bonded debt to
speak of. h
MIR. Meagher. attorney for the Peoples
Gas Company of Chicago. stated to a COM
November %. 1905, that the books of the
company showed the cost of manufacture
and distribution of gas by his company to
be .,..ti per thousand cubic feet.
Roger G.. Sullivan, representing the Og-
den Gas Company. made a statement to the
same committee. at the SINE time, with
reference to the cost of gas supplied by his
company. He gave SITE per thousand cubic
feet as the cost OF manufacture and dis
trlbGtion, including a sufficient amount to
pay bond interest but no dividends on stock.
So
tribution at 1867. allowing pc. So for manu-
featuring and psi for distribution.
Al the conclusion of Mr. Maddens state
ment of his position on the gas question
Representative Babcock called his atten-
ton To a paper the committee had just
received which, he said. was a sworn
statement OF the operations of the gas COM
pany Tor 1906.
II glad you have it, said Mr. Mad
den Il am glad that this public agita-
ton has had some effect anyway. doubt
very much if the company would have con-
descended to furnish such statement If
there had not been this agitation"
In response to questions of various mem
beers. Mr.. Madden continued on the subject
of gas for some little additional time. treat
ing largely of the condition in Chicago.
where the Peoples Gas Company. one Of
the two public service corporations of this
kind has a bonded debt of S55. 900. 900, and
has TO charge thirty-five cents every
thousand cubic feet of gas sold. merely to
pay the interest on this enormous sum. If
it were not for this charge. Mr. Madden
said that gas could be sold in Chicago
much cheaper than eighty cents, the pres
ent rate.
Referring to the taxation feature of the
bill. Mr.. Madden, in reply TO Chairman Bah
cock. said he thought 1t was perfectly fair
to tax the public service corporation % per
cent of their gross receipts. Mr.. Babcock
thought it wouldn't be fair to make the
game tax charge against a company which
could not pay earning expenses against
a concern which made large profits.
Universal Transfers.
Then Mr.. Madden took up his bill for
universal transfers and improved ear serv-
ice. Referring to the Washington Railway
and Electric Companys lines from the
Capitol to Mt Pleasant, Mr.. Madden char
acterized its management as vile" He
was interrupted by Chairman Babcock with
the remark that 1t astonishing to hear
n gentleman from Chicago, where the street
car service was of the worst, make such a
statement like that about Washington.
But Mr.. Madden thought that because
Chicago conditions were very bad there
was no reason why he should not critictse
conditions in Washington and he went
ahead with great freedom. He said the