The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1909-02-20
Senate Committee Shows
Benefits to District Under
the Pending Bill.
LIMITS MONOXIDE
IN THE PRODUCT
Valuations of Two Companies
Fixed After Comparative
Analyses.

A saving Of 100000 every year to the
consumers of gas in Washington will
be the immediate effect Of the passage
OF the gas bill, which has been re-
ported by the Senate District Com
mittee, according to a report cR that
bill which was made TO the Senate
by Senator Gallinger today.
This saving will increase from year
TO year.
Senator Galinger. in his report, ex-
plains the bill in detail, and especially
the capitalization features. he says
that for several years there has been
an agitation for lower gas prices. At
times the criticism of the committee
has been bitter and severe. The COM
mittee hoped that this bill will afford
a just and practical solution of the
gas question. 1t is the opinion of the
committee that the time has arrived
for lower gas prices and that a 10
per cent reduction should be made.
Limit on Monoxide
AS to the monoxide features Of the
bill it IS provided that after September
/, 1910, the amount of monoxide shall
not exceed 10 per cent. The committee
says this will necessitate a change Of
the Washington Gaslight Company s
plant to a coal gas plant, involving an
outlay of from tETee to five million dol
lars. The committee says the demand
for the change is overwhelming, and is
being made in tie interest and health
OF the consumers.
The report then takes up the question
of capitalization. The bill limits the
capitalization Of the Washington Gas
Z .Fao.ss
Of the Georgetown company to
$4,000. The report says there seems
to be good ground to believe that an
impartial appraisal would largely exceed
these amounts, but the committee be
Heyes the figures are fair TO all con-
cerned, and accelerate the movement
for cheaper gas.
Valuation Figures.
Three different methods are then en-
p1oyed TO figure the valuation Of the
plants OF the two gas companies. The
Washington Gas COmpany's plant is
taken up first. There are $4,000 shares,
the average price OF which for ten
years has not been less than $50 per
share. This would give a total value OF
the shares Of S7,Sn0,v00.
There are outstanding certificates Of
Indebtedness amounting 10 s. 10000, and
=
these together gives SlJ,5SS,7e1 as the
total value Of the plant If figured by
this method.
Taking up the taxation of the. Urop-
erty, the committee calculates the val
uatiOn Of the plant on the basis Of the
assessment and the amount of taxes
paid 20 be S1O,6gi, ,474.
The committee further finds that the
valuation Of the Washington Gas Com
pany plant Is an even $1,000, 90 il il
were permitted 10 capitalize on the
same ratio as the Boston Consolidated
Gas Company.
Georgetown Plant
Taking up the valuation Of the George
town plant the committee finds that its
valuation based upon the prices Of its
securities, would be $5S5,O0O on the
basis Of taxation, it would be $574,5.5.
Capitalized on the SAINT ratio as the
Boston Consolidated Gas. the valuation
would be $4,000 Including the franchise,
or S6l5, 900 without IL.
The committee concludes from these
different methods Of valuation, that "a
fair figure for the Washington Gas Light
Company s plant would be SI.4JgOgg with
out the certificates OF Indebtedness. lr
$4,000, 90, II the certificates Of indebted
ness are used as a basis for capitalize
tiOn.
Similarly, the value Of the Georgetown
plant IS fixed at $4,000 without consiG-
ering the certificates Of Indebtedness
and $4,000 If they are considered.