The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1909-02-06
Reduction in Price.

4A(AL+@AANsE Az = A=~~t
Reduction OF the price OF gas from
| 81 to 90 cents Immediately.
Establishment Of an initial rate Of
maximum dividends. probably at per
/ cent.
Adoption Of the sliding scale Of prices
and dividends, on the theory now in
force in Massachusetts and in many
English and Continental cities. under
which with every reduction Of cents
in the price Of gas. the gas company
may add 1 per cent TO its dividends.
provided it can earn the increased divi-
dend at the reduced price. There is thus
Afforded strong incentive to economic
in salaries. administration, and manage
mcnt.
Reference Of the question Of recapltaIi-
zaton TO q commission, which shall be
authorized 10 make valuation OF the
plant, in conformity to recent decisions
Of the Supreme Court Of the United
states Thereafter the company win be
permitted to capitalize up 10 the figure
fixed by this valuation.
Quality of Gas
The question Of quality of gas will
/ probably be omitted at this time be-
! cause Of the inadequacy OF information
or which it viii be possible 20 secure
/ IN the form Of testimony at this session
} On this subject
/ The foregoing plan was outlined today
/ by a member Of the Senate Committee
on District OF Columbia, who expressed
/ the opinion that such a bill would be
/ passed this session.
The friends Of gas legislation IN the
I House have been a good deal in confer
/ ence In the last few days with the mem
7 bers OF the Senate committee, which has
/ the various gas bills In charge. This
/ plan is the result Of these conferences.
/ it being the opinion that a consolidation
/ Of the pending measures represents the
most practical method OF getting quick
results. Representative Sims of Tennes-
/ see has been considering the preparation
Of a consolidated bill. and is Of the
opinion that it represents the best way
Of getting action IN the limited time now
/ remaining OF the session.
As to Capitalization.
It is impossible to guess whit price
/ Of gas would finally be secured under
/ this plan. Everything depends on
the capitalization that would be
adopted as the result Of the commits
sion's investigation. This investiga-
tion would have to be subject to re-
view by the courts. but only TO re-
view.
! In the recent New York case the
/ courts greatly reduced the valuation
/ placed on franchise. in the first in
stane. and held that goodwill must
not be valued 1t is certain that good
viii would be given no valuation. in
/ Washington, under that decis. on. be
cause the gas business is carried on
here, not under term franchises, but
under franchises revocable at tEa viii
i Of Congress. Likewise, il IS assum-
/ ed that such a franchise would be
. given much lower value than one
running a long fixed term of years.
e
that the capitalization would be de-
termIned on something approximatins
pretty closely 20 a physical valuation
. Of the plant
The plant IS now paying 10 per cent
dividends on s2600.000 Of stock, and S
F.. per cent interest on an equal amount Of
certificates Of Indebtedness. besides in
terest on $50, 600 OF bonds. Z IS believed
that the effect OF the capitalization
would probably be TO permit stock to
be issued in place Of the certificates OF
Indebtedness. which would tnereupon be
cancelled. In other words. IT would not
increase the capitalization.
This, of course, is largely conjecture,
based on the facts brought out con-
cerning the values Of the present plant
s1.as to Baltimore and Return
saturdays and SUNDAYS via Pennsylvania