The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1908-09-15
Brooklyn Conditions Prove
Lower Price Profitable to
the Shareholders.
WASHINGTON FIGHT
TO BE RENEWED
Members of Congress Only Need
Leader to Try to Reduce Cost
in Capital.

Additional proof that a gas company
can pay large dividends on a good capt.
tai and vet charge no more than 50
cents per thousand cubic feet, % cents
thousand less than the rate charged
Washington consumers by the Washing
ton Gas Light Company, was shown re-
Gently when the Brooklyn Union Gas
Company Of New York declared a quar-
terly dividend of per cent.
This rate is an increase from The pa
per cent quarterly rate formerly paid
by this company, and calls for the pay
ment Of large sums, since the Brooklyn
company IS capitalized at S15,O00.OOO or
about six times what the Washington
monopoly shows on its books.
That the Washington concern can do
as well as the New York institution is
the belief Of persons who have had
cause to look into such matters as gas
production. The Washington company
supplies gas under better physical con-
ditions than does the Brooklyn concern.
1t enjoys the field here without compa-
tition such as the Union Company has,
and has not the great capital which that
concern must look after. On the other
hand, it Is not called upon to face the
---NNA NAtA4 IS WHICH SUCH q AdISe conf
pany as the Union must face each
year, nor does it have hanging over II
the constant fear that still other corn-
panies may come IN and capture a por-
ton OF the business.
Figures From Wilson.
The Washington company has, accord
ing to members Of Congress who have
made study Of gas production ana
gas consumption in the District, paid
in dividends more than 800 per cent in
thirteen years These are the figures
supplied by Representative Wilson OF
Illinois, who led the tight for cheap
gas for the public schools, when the
District Of Columbia appropriation bill
WAS UP in the House.
According TO Mr.. Wilson. the local
company paid 50 per cent one year. 90
per cent another; = per cent another, !
and 10 per cent another. He said. dur
ing the debate in question. which took
place last April, that the 10 per cent
rate was the lowest ever offered the |
shareholders Of the Washington CON-
pany. ard told how that concern has
increased its capital stock from $4,000 |
70 more than $4,000, while it has never |
Offered 20 reduce the rate
When the New York Legislature pass
cd the famous 5O-cent gas law for the |
borough of Manhattan, the metropolitan |
companies seemed to think that il SPELL /
cd ruin for them. and for some years. |
the rates on several concerns were |
either made very low or passed entirely. /
Less Business, More Dividend.
The increase in the dividend in this /
company. however, indicates that IN spite /
~ ha hard ATYraae - agN
other causes which might ordinarily
tend to create a poor business year. it
has been doing so well that It feels that
its stockholders should be better paid
than In the other and more prosperous
years.
While. of course. conditions in some
respect ere different in Washington, yet
there are not many persons who do not
believe that the Washington company
easily can reduce its rate TO the one
found reasonable IN New York, anC /
still make enough money to keep the
wolves from the door Of its shareholders.
During the same debate in the House |
the extraordinarily high rate. as many
members put it. was thoroughly dis \.
CuSsed, and there were few members II
ready to defend it, although the bill II
looking to the establishment of a lower \,
rate met with a sad fate for some time.
and was finally permitted TO go through Il
badly macerated so that cheaper gas
will only be a little cheaper and can
lot come. according to present indica-
items, until 1909.
Fight Sure to Be Renewed.
Whether or not the fight for I5-cent
gas viii be taken up again in the House
this year is hardly cebatable since the II
number OF members who were for a
easonable price on that commodity
was quite large before, and is likely 70
zfr fG~ az 10
The wider knowledge of gas produc-
ton which some members are very like
y 10 possess, and the conviction that Is
becoming broadly dfnused that Wash
ingtOn has suffered long enough with n
rate that IS extremely high, IS likely
70 bring about a change I'm existing cor {
ditions next winter, If a man comes for
ward 70 lead the light.