The Washington times., 1908-01-08

Congress, first session. In 1872 the capt. |
tai stock of the company was again 1
increased in the sum OF 100000 And III /
each year, beginning with lSt3 ana emo
ing with 1883. the capital stock or the :
company was increased in some amount /
making a total increase from lStl 10
1888 of $500, )01 In 1880 the company had |
100000 Of certificates of Indebtedness !
outstanding. which had been distributCc |
TO stockholders, and represented earn |
ings OF dividends. stock was issued 10
the holders of these certificates, as pro
Vided fer in me act of 1895 =
The bill IN r 1900, the object OF |
which was to increase the capital STOCK
of the company TO $4,000 ID. X !
Report 1863 part p, was defeated III
the House.
Notwithstanding the action of the
House Of Representatives in refusing TO
pass House r. 1905 and the failure on !
the part Of said Washington Gas Llgnt /
company TO obtain trpm congress the
desired legislation TO lncIe ease its capt. |
tai stock. the company unlaWfully pro !
Ceeded, subsequent to the Adjournment
OF the Fifty-Seventh Congress, anu ttlter
its failure to procure the desired leg4S--
lation OF Congress, 70 create an alleged
Indebtedness by issuing S2,6JhoO or Ger
tihcateS of Indebtedness, bearing per
ceRJum interest, being an anoLnt equal
10 the capital stock of the company ana /
distributes and delivered the same 10
It's stockholders as a bonus or graIultS,
without any warrant or authority OF
law, or authority under its charter, lof
its act in the issuance Of the ceruUcdtcS
Of Indebtedness and the gratuitOuS dis
tribution thereof TO its stockholders.
Called an Illegal Distribution.
It also appears that a bill Is. 3042)
was introduced in the Fifty-eishth Con
gress, second session ITO amend an act
relating to the sale OF gas in the District
Of Columbia" the preamble TO which is
as follows:
Whereas the Washington Gaslight
Company of the District Of Columbia
has, without warrant Of law, issued and
delivered to the stockholders of said
company r. bonus of s., 100000 Tor the
purpose of absorbing the large surplus
of earnings OF said company
The bill was referred to the COmmls-
si0ners Of the District of Columbia Tor
report, and the following part OF a para
graph is copied from the report OF the
Commissioners Senate Report No. Z6ZO):
The Commissioners feel that an in
YestIEaIiOn of this character should be
made by Congress, rather than by the
Commissioners. If the conditions under
which the sO-caIled stock bonus of 81
90. 600 mentioned in the preamble Of the
Senate bill 5042 was issued, are TO De
made the subject Of thorough inquiry,
il will neceSsltate sending for persons,
books, and papers
THE Commissioners have no power
TO compel the testimony of the neces-
sary witnesses or the production Of the
necessary papers
The commissioners made no report,
therefore other than as above stated.
upon the matter contained in the pre-
amble to the bill
Certificates Without Basis.
The majority report Oh. R. 262O Of
the committee is to the effect that the
so-caHed stock bonus was in reality an
issue of certificates of Indebtedness,
and il was upon this theory or repre-
sentation, no doubt that the opinions
Of counsel referred to therein were
based. II it is true that the said GER
tihcates represent an actual indebted
ness, the fact is established that the
Washington Gas Light Company had,
since the passage Of the act or June o.
1886 up 10 the year 1903. when the Ger
JfdCates were issued incurred an IN
debtedness Of $50 ZOO, an amount equal
to its capital stock, or, calculating from
the date OF the act Of June, 1890, 10 the
date Of the issuance of the bonus Ger
tifcates of Indebtedness in 1893, an in
cuTFenCe by the company Of an lndebt-
sdneSs OF more than $4,000 annually
during a period of seven years, when
CONSIDERING the dividends paid by the
company, and its continuous prosperous
condition, presents a preposleEoLS
claim which IS not sustained by JAe
facts and practically demonstrates JAaL
no such indebtedness existed as a basis
for such certificates
Tt is stated in the adverse report
CNo. 262O on the bill IS 30i2} that the
officers Of the company sta ted that It's
capitalization GGcluding the issue or
certificates is not more than 50 per cent
of the actual value of It's property II
this is so. there was no reason or Jus
tidcatiOn in TesOrting to certificates OF
Indebtedness in the manner IN Whlch
they were issued and thrown on the
stock market, practically taking the
issue of stock Of the company.
If the company retained its cash earn
Ings or surplus and issued the ceTlln-
Gates Of Indebtedness to its stockhoIder7
IN payment of dividends, It's act was
ultra wires upon the general pFihclplgs
of law, inasmUrl as DIVIDENDS can only
he declared and Daid out of the profits
of the business iTE0mD- on Cor. Vol. .
Sec 215g II. on the other hand. the
company issued the certificates or an
debteduess as a Gratuiry and gave them
m lis s-0rIzn0IdcrS. or even issued them
as representing a real Indebtedness OF
the company. its act was equally ultra
wires under the law Of Congress-
Company Pays Big Dividends.
In the views OF che minority on II. R
134o5 Rep't. 1853. part .. viii be found
the following relative to the condition
of the company and the payment of the
dividends:
as fortunate in the receipt OF DIVIDENDS
as in the growth Of their stock. It is
not denied that the company paid a
dividend of % per cent in 1874. 20 per
cont in 1915, 60 per cent in 1876. and Is
per cent fer each of the years 1873, 1873
1850. The treasurer of the company
stated, in q letter 10 Samuel J Randall.
dated February .. 1881. that for thirty
one and Cne-half years the average OF
cash and stock dividends had been l6.S
per cent That year. 1881. 10 per cent
dividend was paid 1882. 10 per cent;
1853. 80 per cent; 1881, 10 per cent; 1885,
1z1z per cent.
I'm 1854 Mr.. Heard. chairman Of the
TO FREVEHT THE GRIP.
LAXATIVE BROMO QTININE removes the
cause There is only one ''BROMO QUININE."