The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-07-12
DIRECTORS DISCUSS
The GAS PROBLEM
Attorneys, 1t Is Said, Submit
Financial Plan.
IT PROVIDES a BOND ISSUE
Session Lasts Several Hours and
Participants Are Retfcent-Details
May Not BE COmpIete-stocExhoId
ers VIII Be Called Together In
September-What Possibilities Are.

Directors of the Washington Gas Light
Company were not in a communicative
mood yesterday afternoon after their
meeting, lasting several hours, adjourned.
None OF them would say for publication
what action. if any. had been taken.
II is understood that the financial plan
worked out by the attorneys Of the COM
pany was considered. and perhaps adopt
ed. though it may be that some features
OF the plan were referred back 70 the
attorneys for minor changes.
The general plan Of the attorneys is
an issue Of long-term per cent bonds.
TO be used first In retiring the present
SGOO,90O OF the 4 per cent bonds and the
S2.O000OO OF the certificates of indebted
ness.
Bond Issue About 100000.
This would require an issue Of at least
$S,2O0Oo0. provided the bonds and certih-
Gates could be refunded dollar for dollar.
But il is understood 10 be the intention
Of the company to offer a small premium
for the exchange of the certificates,
which would increase the issue OF bonds
TO about $4,000. To this amount is TO
be added. 1t is understood. 100000 of I'M
provement bonds, raising the bond issue
TO a round 100000.
1t is understood that the company is
also DESTROYS Of making a large cash div
idend upon the outstanding stock, unless
way can be found to increase the cap
italization OF the company TO the rec
Ognized value Of the plant. which has
been appraised at about Sl3.500,O00 This
feature of the problem, II is understood
was one OF the chief matters considered
yesterday.
May Call for ApDraisement.
The fact has been hinted that por-
ton OF the directors are in favor Of hay
ing a new appraisement of the property
made, as a basis OF a stock issue at a
later date. letting the bond issue go
through now. as a means of putting the
affairs OF the company upon sounder
financial footing than at present, with
the large outstanding issue Of promissory
notes in the form of certificates Of in
debtedness.
Those conversant with the affairs Of
the company are Of the opinion that It
would be in much better condition TO go
before Congress and the gas consumer
with its bonded Indebtedness in some
such legal form as that indicated.
Another view of the case is that In the
light Of the ruling Of the Supreme Court
the company has the legal right 10 in
crease Its capitalization TO the limit of
the appraised value of the property It
owns in the form of a working plant.
An appraisement OF the property has
been had through the Interstate Com
merce Commission. placing It near slS,-
100000, and IN case a new appraisement
is made this figure might be slightly
exceeded or 1t might be reduced. but in
ony case. when made in legal form il
would form the basis OF a new stock
issue OF several millions of dollars.
Rights Would BE Valuable.
Such an issue Of securities by the COM
pany with the rights accrulng TO the
present stockholders would constitute a
valuable premium upon the present hold
ings of stock. and it is this the majority
of the stockholders have been waiting for
for more than three years.
II IS understood that a meeting OF the
stockholders will be called in the month
Of September TO pass upon the plan
worked out by the directors. On the
supposition that the plan Of the at
torneys as submitted TO the directors was
yesterday found to be satisfactory, II
may be assumed that it win be
withheld from the public until formally
announced TO the stockholders in the cir
cular calling them together 10 act upon it