Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-02-20
Enactment is URGED
Action on House Bills Is Indefinitely
Postponed.
SLIDING SCALE CONSIDERED
Committee Believes It Has Solved
to Public and Individual.

act justice 10 Doth the consumer ana the
producer. and it's enactment is earnestly
urged
1T will settle a disagreeable contro-
versy
Its immediate result will be a saving
of more than soO0.0O annually to the
consumers of gas. an amount which will
constantly Increase as the city grows and
business expands"
This is what Senator Gallinger has to
say of his substitute for all the measures
pending In Congress to regulate the sale
and manufacture Of gas i'm the District
of Columbia in report made 10 the SEN
ate today
After presenting his report today Mr..
Gallinger moved to postpone indefinitely
action on all the bills which have reached
the Senate from the House on the sub
ject of the regulation of the manufacture
and sale of gas in the District of Column
bia. This was done by unanimous con-
sent.
The report Is long and goes into detail
on the subject of the sliding scale pro-
posed for the price of gas and the divi-
dends Of the Washington Gas Light Com
pany and the Georgetown Gas Company
and on the subject of increase or capital
stock.
Report on Gas Bill.
1t is in part as follows:
There has been an agitation for cheap
er gas going on in the District of Column
bia for several years. At times this agi-
tation has been bitter and criticisms upon
the committees of Congress having Jur-
isdiction of the subject severe.
But notwithstanding that fact. an ear
nest effort has all the while been made 10
reach just and practicable solution or
the problem Involved In meeting the
views of the public without doing violence
to the private rights. 1t is hoped and
believed that this bill solves the problem
satisfactorily for all concerned
THE last reduction in the price OF Sas
was made on a sliding scale I'm an APP
preparation bill i'm 1896. At that time the
price in the city of Washington was ~ .
and i'm Georgetown 81 ~. The provisions
of the bill were that reduction OF
cents per year should be made until the
price should be 81 in Washington and
81 % in Georgetown, which reduced rate
was reached in the year 1901
"Since then the price Of gas in George
town has been voluntarily reduced by the
company TO 81. So the price now paid
throughout the entire District il 81 per
OOO cubic feet. which compares favor
ably with the average price being paid
In the cities of the United States Of like
size under fairly similar conditions. aud
as was asceriained by the chairman OF
Spondence last year.
Time for Lower Price.
However it is the opinion of your
committee that the time has now arrived
for lower prices and thar a 10 per cent
reduction can be fairly demanded Of the
corporations. with proper provisions look
ing to future reductions.
1T will be observed that I'm the section
Of the bin providing for 9o-cent gas IL is
also provided that on and after Sept, m
Der ]. 1910. gas in the District shall not
contain more than 10 per cent of carbon
monoXide. This means that the plant OF
the Washington Gas Light Company Will
have to be hanged from a water-eas to "A
coal-gas plant. involving an outlay vari-
ously estimated at from s3.000.oOO 10 So
600 900.
THE demand for this change is over
whelming, il being made in the inter-
ests of the health and lives of the con-
sumers.
1T goes without saying that to require
the companies to abandon their water
gas apparatus, worth several millions ot
dollars, and to replace it with an up-to-
date new coal-gas plant of much more
expensive character raises an equity
which is worthy of Legislative recogni-
ton.
when the provision vas inserted in the
act of 1896 providing for reduction in
the price of gas IL was also provided that
an appra isement OF the plant OF the two
gas companies in the District should he
made by the Supreme Court of the Dis
trict, with view to establishing OASIS
for further increase of the capital stock
as occasion might require. Nothing was
done under this provision until two years
ago, when the Georgetown company
sought to avail itself Of the privilege.
Subsequently the Washington company IN
stituted similar proceedings.
Georgetown property. Its proceedings
We're arrested on constitutional GROUNDS
By the Court of Appeals, which declared
the law unconstitutional in that II con-
ferred legislative functions upon judi
cial tribunal. In turn, the company APP
PEI led the case to the Supreme Court 81
the United States. where il is now pend
ing.
New Valuation Scheme.
Section of this bill repeats the valua-
ton clause of the act of 1896. Section
provides for another method of appraiss-
ment, which your committee believes Will
not be obnoxious to constitutional obJec-
ton
In relation to the limit on the valuation
of the two plants fixed by the bill-Slo.
100000 for the Washington and SiJo,ro
for the Georgetown-the report says:
THE proposed limitation TO Increased
Capitalization is based upon three differ
ent methods of safely computing the pres
ent value Of the plant. as follows: FIRST,
there are 10000 shares of the Washing
ton Gas Light Company. and during the
past ten years the average price or these
shares has not been less than SGD per
share The public, therefore, has placed
valuation on its capital stock or not
less than $7.SO0.OOO.
There are certificates of indebtedness
outstanding amounting TO S2.tOO,W ana
bonds amounting to sos, 700
or a total valuation of the property OF
this company. as shown by the price OF
its shares, of $10.99S. TOO.
to show that the value of the real estate
of the Washington company is S3.3S, AL.
and that II pays a tax on its gross earn
ings of per cent amounting to SlOl,2so.
which is equivalent to a personal property
tax of ~ per cent on ST, a., Obj
This amount, 1t Is explained. added To
the value Of the real estate, would give a
total valuation OF the property or tnt
company Of S1O.691.474
In the third place, Ii Is explained that
the sliding scale by which the price Is To
be reduced ) cents every time the diri-
dend is increased one point above per
cent is based upon the scale in effect IN
London and adopted by Boston.
The same method is employed In eX-
planning the limit placed on the George
town company. 1t is stated that I'm l:nS
that company produced $1,000 cubic
feet. and with 81 Of capital stock
for every 1000 feet the company would be
entitled to capitalize at S+sa.CD
Athletes at White House.
President Roosevelt today shook hands
with some of the most noted athletes OF
the country They were introduced by