The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-07-22
Commissioners and Gas Question.

Editor The Washington Herald:
The honorable Commissioners have very
recently Informed an inqUisitive citizen
that they will renew their recommends
ton for 75-cent gas to the next Congress-
If that viii AFFORD a fair return" to the
stockholders Of the Washington Gas
light Company. a fair return" on
what? on amount actually invested by
the stockholders, or on such sum and
franchise value and water? The time
has arrived when the Commissioners
should make a specific recommendation
for 75-cent gas. as recently suggested
by The Washington Herald, which has
rendered valuable service 10 the people
on this question
Notwithstanding the fact that gas is
sold in England at less than one-half the
price charged for IL in Washington, and
that in many cities of tie United States
the price has been reduced to 70 or 80
cents and less during the past five years.
the Washington gas monopoly has con
tinually sChemed TO manipulate things IN
such manner as to forever prevent fair
reduction in this city.
About four years ago the gas company
endeavored to induce Congress TO permit
it to increase its capital stock from
g. 500. 900 to $l3, $50. coo The object Of this
outrageous stock jobbing measure was TO
head off any reduction in the price OF
gas to consumers and 10 assure the
stockholders "a fair return!" A bill au-
thorizing this immense Increase was in
troduced by Mr. Babcock, and. as a mat
ter of courtesy. referred to the Commits
siOners Of the District for report. They
promptly returned it with a favorable
recommendation Fourteen Of the sew
euteen members of the Committee on the
District of Columbia reported II 10 the
House with the recommendation that II
he passed. Three members of the com
mittee made a minority report 50 strong
and convincing that they brought To their
support "A very large majority Of the
House. and the bill was given a knockout
blow; but our public servants. the Com
misSiOners. certainly deserve no credit
whatever else they may deserve, for the
part they took In the matter.
After the Congress which refused to
permit the gas company 10 Increase its
capital stock adjourned the company, in
fragrant violation Of law, issued 100000
of sO-called certificates of Indebtedness
and distributed them as a gratuity among
its stockholders. The holders of these
certificates receive per cent interest on
them. and the company thus gets rid Of
S1J6.000 of its enormous profits annually.
But the 10 per cent dividends on its
lawful stock and the unlawful certifi-
Gates Of indebtedness are not sufficient
to dispose of and keep in circulation its
surplus earnings, therefore an appeal to
the court IS about TO be made by the
Washington Gasight Company for aU-
thority to do that which Congress en-
phatically refused to permit it 10 do
capitalize at figure SO high that gas at
less than 81 per thousand cubic feet would
not afford a fair return" on the watered
stock.
The important question now is, not
what the Commissioners are going to rec
Ommend to the next Congress. but what
they are going to do now TO prevent>th the
gas monopoly from intrenChing itself be-
hind many millions Of stock. the greater
part of which. now that the "unsanitary''
pumps have been put out of business, viii
be composed of purer water than the
average citizen of Washington ever gets
chance 20 drink. Z. ". OYSTER
Washington D. {.