The Washington herald., 1909-02-21
SENATE IS URGED
TO PASS GAS BILL
Gallinger Reports Benefits to
Accrue from Measure.
OPPOSITION FEARED IN HOUSE
In Lengthy Document the District
Committee Explains Necessity for
Changes 1t Recommended and sue
einctIy States Reasons Why speedy
Legislation should BE Passed.


gas bill introduced Thursday, and deciar-
ing its immediate result viii be q saving
Of more than S900Oo0 annually 70 the con-
sumers. Senator GaHinger yesterday sub
raitted a report on the bin. which deals
in detail with every phase Of the ques-
ton.
Although 1t may pass the Senate with
little opposition, rumor is rife that the
bill VIII encounter rough shedding when
reported in the House Apparently to set
al rest any disquietUde that may exist
over the provisions Of the measure, Sen
ator GaIinger has made the report on
IL fun and wide in its history Of the
pending legislation
In an effort to forestaU any objections
on the part OF the House. the chairman Of
the Senate District Committee ordered
that several hundred additional copies Of
the report be printed for the use Of the
House committee
adverse Report on Bills.
Immediately after presenting the report.
Mr. GaIinger submitted adverse reports
on the four House bills. whose features
are embodied in his substitute measure
The District Committee of the Senate
is Of the opinion that the bill is so framed
as 70 do equal and exact justice 10 both
the consumer and the producer. The
members point out that its enactment wiz
settle a disagreeable controversy and its
passage VIII be the means Of saving
thousands OF dollars as the city grows
and business expands
It is plainly brought out in the report
that the Congress committees. although
they. have been criticised In the past for
not taking remedial action sooner, have
all the while been making efforts TO reach
Just and practicable solution Of the
problem inv0lveJ in meeting the views
OF the public without doing violence to
private rights"
The report in part, reads as follows;
1t is hoped. and believed. that this
bill solves the problem satisfactorily for
all concerned. The last reduction in the
price OF gas was made on a sliding scale
in an appropriation bin IN IS95 Al that
time the price in the city Of Washington
was S1z5 and in Georgetown Sl50 The
provisions Of the bill were that a reduc-
tion Of 5 cents a year should be made
until the price should be 81 in Washing
ton and s1z5 in Georgetown, which re-
duCed rate vas reached in the year 1861
Since then the price CT gas in George
town has been voluntarily reduced By
the company TO 81. so that the price now
paid throughout the entire District is s.
per 1000 cubic feet. which compares favor
ably with the average price being paid in
the cities OF the United States OF Ike
size under fairly similar conditions. and
as was ascertained by the chairman OF
this committee BY an extensive corre-
spOnde1ce last year. However. Il is the
opinion Of your committee that the time
has now arrived for lower prices. and
that 10 per cent reduction can be fairly
demanded Of the corporation, with proper
provisions looking 10 future reductions
HonoxIde Prohibited.
1t viii be observed that in the section
OF the Dill providing for 90-cent gas II Is
also provided that on and after Sep
temher /, 1879. pas in the District shall
rot contain more than y per cent Of
carbon mOnoxide. This means that the
plant OF the Washington Gaslight Com
p2ny VIII have 10 be changed from
water gas 10 coal gas plant. involving
an outlay variously estimated at from
100000 10 S5.6Oa,000- The demand for
this change is overwhelming. II being
made in the interests Of the health and
lives Of the consumers.
1t goes without saying that 10 require
the companies 20 abandon their water
gas apparatus. worth several million
dollars. and 10 replace IL with an up-to-
date new coal gas plant OF much more
expensive character raises an equity
which is worthy OF legislative recogni-
ton"
In relation 10 the limit on the valuation
OF the two plants fixed ny the bill, the
report SAYS The proposed limitation
20 Increase capitalization is based upon
three different methods Of safely com
putting the present value OF the plant. as
follows. First. there are $4,000 shares
Of the Washington Gaslight COMPANY.
and during the past ten years the aver
age price OF theSa shares has not been
less than SO per share. The public there
fore has paid a valuation on its capital
stock OF not less than S7s00O59 There
are certificates Of Indebtedness outstand-
ing amounting 10 $4,000 and improve
ment bonds amounting TO S59S.790. or z
total valuation Of the property Of this
company. as shown by the price Of its
shares, Of S10.99S 7O0.''
The report quotes the District assessor
70 show that the value Of the real estate
OF the Washington company IS S3e39 Al
and that IL pays a tax on its gross earn
ingS of per cent. amounting 10 SI0I 80
which is equivalent 10 a personal property
tax Of IL per cent on 6,752Og2
This amount il Is explained added to
tle value or the real estate would give a
total valuation OF the property Of the
company Of S10.6g1. .474
In the third place It is explained that
the sliding scale by which the price is TO
be reduced cents every time the dfvi-|
dends have increased one point above Z
per cent is based upon the scale in effect
in London and adopted by Massachusetts.
sliding Scale Explained.
The same method Is employed in ex-
planning the limit placed on the George
town company. Il is stated that in 1903
the company produced S7.O000oO cubic
feet and with $ Of capital stock for
every 100 feet the company would be
entitled 10 capitalize at $500
The report concludes as follows: Your
committee are Of the opinion that the
bill Is so framed as TO DO equal and exact
justice 20 both the consumer and the
producer. and its enactment Is earnestly
urged L viii settle dlsagreeable con-
troversy, and its immediate result will be
a saving Of more than 100000 annually
70 the consumers OF gas which amount
VIII constantly increase as the city grows
and business expands
Conference or POSt-Office BIZ.
The House yesterday notified the Sen
ate that Il had failed 20 agree on certain