The Washington times., 1910-03-30
THE RESULTS OF CHEAPEN-
ING GAS IN NEW YORK.

To the officers of the Washington
gas companies. who have latterly been
exerting themselves TO prevent the pub
lie finding out the information TO which
it Is entitled concerning their business.
we commend study Of the recent gas
statistics of New York city.
When the price of gas in the me
tropolis was reduced to so cents the
lawyers for the Consolidated Gas Com
pany based their protest in the courts
on the claim that their constitutional
rights were being invaded: their prop
erty would be confscated by the new
rates. They were able to make com
pUtation which the courts amended. and
finally, as amended accepted, showing
that on the basis of is business in the
past, the company would earn a trife
under ! per cent annually. But, said
the Supreme Court, while J per cent Is
"A reasonable rate which the company
Is entitled TO earn. there is no Ger
tainty that the business viii not in
crease under the impetus of lower rates.
and the earnings be ample 10 pay the
I per cent dividend. Wherefore, the
Supreme Court ordered that the new
rate be enforced and given fair trial
Comes now the public service com
mission with statistics of the outwork-
ings of the new schedule Il shows
that for the first year since the Con
solidated decision, 1909, the net profits
Of the Consolidated system was s. .5S3,-
3S2. This is an increase over the pre-
ceding year Of S3.37I739. The ConsoH-
dated sells something over two-thirds
Of New Nork's gas. The other concerns
show increase Of their profits in Just
about the same proportion as the Con
solidated
Now, these figures prove two or three
things that are exactly applicable to
Washington. One is that when a public
service corporation objects TO doing the
square thing by the public, it Is gener-
ally standing in its own light The
Consolidated is without peradventure
of doubt better off today for having
been defeated in its contention against
6O-cent gas. The Boston gas companies
have had a like experience with SO-cent
gas, the increased business and profits
having enabled them a year or so ago
to increase their dividend
The short-sighted, selfish, unthinking
policy of opposing everything in the
public interest simply BECAUSE II Is
in the public interest, with never a
thought whether it may also be in the
interest of the corporation, is the
greatest weakness and danger Of public
service concerns in this country. Our
own Washington Gas Monopoly last
year reduced the price of gas 10 cents,
and its annual report showed almost
exactly the same revenues, gross and
net, as the year before. The truth is
that square dealing actually pays in
ledger profits.
Our local monopoly may well contem-
plate these experiences. 1t must see
that it is certain to meet defeat before
long, in its fight against all concession
to the public. 1t is not going TO be
allowed to carry out its magnificent in
iation scheme, and might as well un-
derstand that fact. Il can't do it with
out consent of Congress, and it can
never get that affirmative consent. In
the end, it will fare much better If it
will treat the public fairly.
There is reason TO believe that Wash
ington is entitled to 75-cent gas imme-
distely, with sliding scale law under
which further reductions may be as
sured in future. If the gas compsnies
were as wise as they ought to be in
view of the object lessons on every
hand, they would consent to proper
legislation to accomplish these ends.
FREDERICK D. CLOUD ON THE