The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1909-02-22
|. A. MUNSEY
The Gas Company Has Good Thing in
the Galiinger Bill.


tiers so that the companies may buy coal lands.
Before reporting this b the committee applied to the corporation
counsel for draft of Republication provision The draft was sub
mtted, follows:
bonds Indebtedness
sc sG 9 ansq and any contrary the provisions TINS
provision cast aside by Senate committee which pro-
vides in its bill that valuation the property" shall be made and
stock may be issued up to the of this valuation
One provision would permit valuation and capitalization for fran
chEes rights, good WILL etc; the other would
One provisonhe prepared by the law officer of the District
government expert in such questions and the law and decisions
eng thwou confne the valuation to the physical properties; the
other would admit all the intangible elements
committees proposes to allow franchises
freely without cent of cost proposes tax the people for the
generosity they have shown the gas companies.
There doubt that property" franchises
scdaed case York Supreme recently
at cannot be disputed that franchises of this nature property
Therefore, the broad term property be used the franchises will be
valued
equity they ought be valued They could be val
ued the law prohibited it; the gas companies Washington may
increase their capitalization only as provided by law.
Substitution of the committees language for that of the Corpora
ton Counsel that the gas companies to be authorized
huge capitalization against their franchise and good
much nobody tell the committee itself fixed the limit $4,000
300 for The Washington Gas Company That company has out
standing bonds and certificates debt 100000
mee apparently uncertain how far things might places the limit
just this side doubling that figure: permits adding $4,000
Generous to the companies but just to the people? Decided
Iy
The Senate committee bill authorizes exchange the present Ger
caes of Indebtedness into stock par. The certificates drawing
per The stock authorized per cent much
possible under the sliding scale.
These certificates represent investment They freely dstb
ued a of distributing surplus. But il proposed
them into stock and legaize them beyond cavi-
If the Senate bill passes something like this will happen:
valuation will be made developing that of property rights good
WILL franchises ETC. the company has value amounting SOOOOOOO
The present 100000 of stock will be inflated 10 $4,000 Of
stock.
The present s. 100000 Of certificates of Indebtedness will be can
ceed and stock issued in exchange for Them
The property will then have sfoOOOOOO of capital
ing to at least cent and 100000 of bonds TO per
The total charges imposed the property would be at least
$4,000.
Now the people Of Washington Assuming that
the certificates OF Indebtedness are 70 be ead the fair would
be thus
Retain present valuation
Authorize funding me aaca,es say into bonds
a
20 "a .as %% s oHa - Pc t I@"
sOtaI $4,000
This latter computation represents the limit of Hbety Beyond
It lies profigacy of the public interest.
This liberal proposal would impose charges Of $4,000 annually
The progate one would impose charges Of $4,000 annually
The Senate bill stands for the latter figure.
The gas company entitled its actual invest
nen has invested nothing franchises entitled to returns
on good WILL Supreme said the Consolidated Gas
alloy for o n tlmain
But Washington conditions different There ga
companies theoretically might become competitors
franchise. The might hold that in this good
entitled be valued though fact there real possibility
petition Therefore the safe way 10 exclude good will in making
the valuation.
the bill doesn't exclude il. Why, Nobody
that only known that this bill reported IFS e
prediction that they will go Plainly h
gas company expects good thing.
The gas company already said entitled to the fai