The Washington times., 1908-12-15
Franchise Worth More.

would be OF very large value
Franchise Worth More.
Suppose you go along and permit
stock to be issued upon the value OF
the franchise. in a few years-fve
years or ten years-the franchise Is
worth much more than Il was when the
stock was issued upon It. and you can
repeat under this section. as 1 under
stand II, as the committee understands
il, indefinitely. You can petition the
court 10 tx a value, and continue 70
petition it and continue 20 add stock
to the company TO cover the value OF
the franchise that increases without a
dollar Of outlay by the company or any
risk whatever--Iothing except the nat
ural uneaYned increment, as I am pleas
ed to call It. Therefore the committee
thinks that such law should not De
permitted to remain.
Mr. Murdoch. viii Il rebound 70 the
good Of the gas company or 10 the Dis
trict7 e II an advantage TO the District
government TO have this section repeal
ed. or. on the other hand. will II do the
gas company any harm2'
Mr.. Sims: 1T may do the consumer
a great deal Of harm. providing the
stock issue as a result OF the proceed
ings should be so large that we cannot
reduce the price Of gas and leave rea-
sonable earnings to the stockholders in
this new inflated or increased issue
Therefore, the consumer. asks that
this bill be passed now There is an
other bin here 20 reduce the price OF
gas, and II this section IL repealed Con
gress can deal with the question Of the
- q
possibilities Of a stock issue that might
render void or invalid any price We
might fix Some gentlemen seem to be
under the impression that II this clause
is repealed the company can go ahead
and issue stock BY some other means.
They can Issue no stock unless author
iZed by act Of Congress 10 do So I
say, as / have said before. that the
present stock issue OF the Washington
Gas Company does not equal even the
structural value Of the plant at pres
ent. but there is an act that. as con-
strued by the court that viii have 70
apply r., will capitalize this franchise,
which Is given the companies free We
should not give away the property
rights OF the people by way OF a fran
chtse and then allow the GOnee to can't
talize Il and demand an earning upon
the gift
Power Vested in Congress.
A-AN NDA4tsAE11 Las 4l4A power 70
authorize the increase OF the stock OF
the gas company under such limitations
as Congress may FIX. 1t may say that
in finding the value that the franchise
rights and good viii shall not be in
Guided or II may fix any method. but
( Congress ought not. according 20 the
{ Judgment OF this committee, have
I passed this bill. but the committee in
| slsts II has the right TO repeal II be-
! fore the rights OF the companies under
II have become vested -
Now, Mr.. Speaker, the obje-t OF thi,
bin Is not to reflect upon the court OF
findings OF the court. either the 81.
preme Court OF the Court OF Appeals. OF
/ 70 anticipate the action OF the SUPREME
/ Court OF the United States. 1t IS nOt
\ interfering with the case in court. be
I cause there is only one party.
! But am not here to plead tn,
rights OF either or the equity OF either
/ Here - law. I DO not think Il should
/ ever have been passed. The law has no
been executed, no rights hav,
3 been fixed under Il. and the cOmmitte,
thinks the law ought TO be repeas ed. q.
/ II should never have been passed"
/ The bill was ordered TO be read the
3 third time and passed.
4 On motion OF Mr.. Campbell a motor
4 TO reconsider the vote by which the bill
/ was passed was laid on the table