The Washington times., 1907-11-05

VIII come before the court for argument
and an order IL may be, however. at
a-a time. according to the District
Government authorities.
Fight Expected.
The fight Of the Washington Gas
Company for the privilege Of capitaliz-
ing It's surplus earnings is frankly re-
garded as certain to reach issue soon
The gas comDanys management is
likely never to get the millions Of ad-
dltlon capital that Il wants. II Il fails
now. because there is powerful senti-
ment against permitting more imitation,
and II is known that the District Cow
ernment has outlined plan which VIII
De laid before Congress and pressed
eneTgetically, for better regulation Of
franchised corporations in these re-
CARDS 1t is probably now or never with
the gas interests.
The Commissioners propose to exhaust
every resource before admitting that
there is no appeal that wiz caange the
effect OF Auditor Payne's appraisal Il
is anticipated that the District court
viii grant the company the right %
make the additional stock issue.
The next step has not been determined
as yet, but Il can be said that the deci-
sion OF the Supreme Court OF the Dis
trict Is certain not to END the matter,
however that court may decide.
The question back Of the Georgetown
company's fight is whether the Wash
ington Gas ComDany's s.. zoo. 600 of GER
uficates Of Indebtedness may be trans
formed into stock OF unquestioned
gality and. probably. also whether still
further imitation OF its capital shall be
permitted, Efforts have been made re-
peatedly TO secure investigation OF the
legality Of these certificates without sue
cess. In 1904 Representative Samuel W.
Smith Of Michigan introduced a bill 20
have the Attorney General by quo war
Tanto proceeding test the legality OF the
certificates, but nothing: came OF It
smothered IN committee. In 1906 Repre-
sentative II. c. Adams Of Wisconsin dsd
the same. and his bill likewise was
asphyxiated
Minority Investigation.
The minority Of the House District
Committee, reporting on the Smith bill
Of 1894. made these observations:
The company paid dividend OF 50
per cent IN IS74 % IN 1875. c. IN 1875. and
Is each In 1873, 1879. and 1856 The treas
urer of the company stated ia a letter
in 1881 that for thirty-one and one
half years the average OF cash and stock
dividends had heeE 16.8 per cent. In
ISL, 10 per cent was paid. lSS2. 10 per
cent; 1889. 20 per cent; 1855. 10 per cent:
1885, 12I. per cent.
''In 1894. Mr.. Heard. chairman of the
District committee, reported the con-
pany as having paid a dividend OF 10
per cent and having accumulated earn
lngs. l undtistrlDut5d' Of S2so.o0o, This. 200.
during the year when, according Ia
their own testimony, the plant had beea
rebuilt and its CAPACITY doubled
In response 10 inquiry of Hon J. ".
Babcock. February B. 1896. the company
reports dividends for 1895 as s600, ,eei. Ur
cash balance Of SS,922SS at the Yeas
end"
At the time Of making the foregoing
statement the subcommittee asked lie
company for facts concerning its Dusi-
ness put was denied them. The corn
paPy Claimed that eminent counsel JUS
tanned the legality CT the issue of cer-
phcateS, but these opinions were MOI
Presented 10 the committee.
from al the facts it could obtain the
subcommittee Of the House District
Committee In the last session concluded.
l. Ihat the company did not secure
from Congress authorization for an in
crease OF its stock
2 That Congress had provided In what
manner. by judicial proceeding. the
company might increase its capital
8 That Congress had provided the
manner IN which. by a judicial proceed
ing, the company might iacur an in
(. That without resortinq 10 the law
OF judicial proceedings governing it. the