The Washington times., 1908-01-30
Why the Imitation Act Should Be Suspended


Senator who is also a member of the Committee on
the District of Columbia has suggested to The Times, in
discussing the pending gas legislation before Congress-
aspect which is entitled to consideration Commenting
the request Of the District Commissioners suspension
of the section of law under which the gas companies have
instituted proceedings to increase their capital this Sena-
tor said:
'There is a widespread movement for having capital
izaOn issues regulated by public authority. The
District of Columbia to have law providing this
regulation The Supreme Court Of the District is the tri
bunal which decisions made as to reasonable
Of proposed increases of gas capital This scheme Of
supervision appears at casual glance, to be strictly in
line with the public demand for such supervision. Why
does Washington wish to have it changed?'
The question is fair, and deserves fair answer It
puts the burden Of proof whoever objects the pro
cedure under the present law But the not diff
cult
The capitalization of the gas business the basis of
determination of values under the present should not
be allowed, because:
First. That law is utterly inefficient a safeguard of
public interest
Second It was passed eleven years ago without any
consideration opportunity for analysis time when
the significance Of public supervision in such matters
not appreciated.
Third The particular section under which provision
is made for determining valuations forced into the
law crude undeveoped and Ineffective it is by Joseph
w Babcoc everready and sympathetic coadutor to cor
porate interests in this district.
Fourth Under this section there is no chance at all
for the publics with the valuation get fairly
stated.
Fifth. The municipal authorities are without means
to make any satisfactory rebua of the showing of values
made by gas company. The proceeding becomes little
less than eXparte
Sixth There are scores of essential aspects which
ought to be taken into consideration in making valua-
ZION, which have not been considered in this case and
in the nature of the proceeding under way cannot be-
Seventh. The law contemplated that the Supreme
Court justice of that court should investigate and de-
termine the valuation The real work. however has been
done by a master.
Eighth In the present instance, the operation of this
law is practically certain to result in authorization of
vast increase in the capital of already greatly overcap
taized concern.
Ninth The Commissioners Of the District and the Cor
pOratiOn Counsel fully informed Of all the matters
involved, and realizing the danger of proceeding under
such imperfect law, have asked that it be suspended
The Times is the last newspaper that would object
to proper supervision Of capitalization 1t insists how
that proper supervision is utterly impossible under
this act
The Commissioners Of the District take the same posi-
ton.
The intelligent citizenship Of the District has backed
the Commissioners in the demand that proceedings under
Shis act be suspended.
If the committees of Congress in charge of this mat
ter will send for the Commissioners and for the CORPORA
ton Counsel they will learn why these authorities have
asked suspension of the law
Why should not the executives of the District bn
sent for to explain why they ask this suspension?
They know why. They are ready to tell if given the
chance.
Why not summon them to explain their communica-
ton earnestly asking suspension Of this act?