The Washington herald., 1909-04-18

AS the mouthpiece of the city's business
interests, the Chamber Of Commerce met
representatives from the various citizens
associations last evening and took ;he
first steps for a concurrent organization
TO obtain gas legislation from Congress.
There was no denunciation Of the Wash
ingtou Gaslight Company. II was made
evident that The fight for cheaper gas and
against excessive capitalization will be
conducted along the sanest and clearest
OF lines
While the citizens associations are rap
idly forming a central body, the subcom-
mittee on public utilities OF the Chamber
Of Commerce IS formulating a gas pro-
gramme which viii probably meet with
the united support OF Washington. It is
not likely that the citizens associations
will attempt to act independently after
finding the chamber so eager to ascertain
the sentiment Of Washington on the sub
ject. and so determined to crystalline It
before the next session OF Congress.
GaIIinEer PHI Not IndOrsed.
The GaIlnger bill viii not be indorsed.
II was stated last night this measure
will undoubtedly be reintroduced when
Congress convenes next December. An
comment upon it by authorized repre-
sentatives was adverse. and one speaker,
voicing the opinion OF the Northeast
Washington Association. pronounced it
absurd and ridiculous"
Walter c. Balderstor chairman OF the
subcommittee. presided at the hearing
The subcommittee was only partially
represented, and comparatively few OF
the citizens associations sent their rep
resentatives with definite instructions.
Most OF the speakers frankly declared
themselves open to conviction. There was,
however. a(unanimous opinion that the
present gas rates in the District Of Co
lunnbia are extortionate, and that any at
tempt to increase the Washington Gas
light Companys capitalization beyond
the legitimate limit OF physical valuation
must be carefully guarded against.
As delegate OF the Northeast Washing
ton Association. Evan Tucker made an
effective statement OF the case against
the gas company. He emphasized the
point that the declaration Of dividends by
the corporation furnishes no true meas
urement OF its earning capacity. because
this has been carefully concealed BY
bonuses Of stock and devious ways OF
distributing the surplus.
we know the gas company has out
standing certificates OF Indebtedness 10
the extent Of $4,000 he said. I'VE
know ii has distributed these certificates
among it's stockholders so as 70 provide
a channel for its surplus earnings and
TO prevent these earnings from appear
ing In the form OF dividends.
Our association has indorsed the Mad
den bill providing for 75-eent gas. We
Raff fc F,f
repeatedly gone on record as saying so.
There is one point making for a large
reduction in the price which has been
quite generally overlooked. When the
law Of 1896. establishing the present rate.
was passed II provided for twenty-five
candlepower gas. The company has since
been allowed TO reduce this TO twenty
two candlepower. This has not entered
into the popular calculation as 10 the
degree Of price reduction. nor has the
company taken it into account.
Would Reduce Gas Price.
1T has been generally accepted the
ory that gas can be furnished in Wash
Ington % cents cheaper than in George
town. because OF the difference in the
size Of plant and the supply The two
companies have asserted this vigorously
for many years. Now We find the George
town Gaslight Company voluntarily re-
ducing the price Of gas from SIS 70 81.
On the same basis. why cannot the Wash
ington Gaslight Company reduce the price
from 81 10 Is cents?
The Gallinger bill is a ridiculous prop-
osition. In the first place. il provides for
q radical reduction in the price of gas
In the second, It requires a more expen-
sive gas-cOal gas-as a corollary. which
probably will not be indorsed by the
sober second thought OF the people Of
Washington. In the third. it allows the
gas company to triple it's capitalization
There would be no legal way 20 retire
that stock II il were once issued. and the
company could easily demonstrate that
II could nct nay a reasonable dividend on
Its increased capitalization unless the
price of gas were increased.
The gas company has offered no evf-
dence to show that Of its present cauitsl-
ization more than $4,000 has been maid
in The rest has been contributed from
surplus earnings. and the whole plant
has been built up on the huge profits. II
is true that the bonds do represent cash
that was paid in. I am convinced that