The Washington herald., 1910-04-14

II makes no difference who owns the
property. Take, for instance, the company
that operates the Philadelphia gas sys-
tenn. II does not own an inch OF the
mains. 1t owns mono Of the holders, It
owns practically none Of the plant; all Of
that belongs 20 the city OF Philadelphia
and IS leased by 1t 20 the operating COM
pany. Take the Cincinnati Gas Company
as another instance; the operating com
pany does not own the plant; it leases 1t
from the original owners. So the Ques-
ton OF who owns this property or how
this property was acquired. whether the
company destroyed the books thirty years
ago or not has nothing 70 do with the
case and should not be permitted to OBJ
scure your judgment as to the reasonable
ness OF our earnings.
Mr.. Rothermel-Is that correct?
Mr.. Goldsborough-About destroying the
books?
Mr. Rothermel-Yes. sir.
Mr. Goldsborough-Yes. sir; undoubt-
edly
Mr. Hazleton-They sold them?
Mr. Goldsborough-Th books were sold
and they were destroyed. I am willing 70
concede that they were burned for the
sake OF argument That has nothing on
earth 20 do with the controversy.
Mr. Rothermel-Would not the govern
ment have the right 10 look Into that as
part Of the history Of the company?
Mr.. GoldsborOugh-I should not think so.
Mr. Rothermel-Would have no right 10
see what the company has been doing2
Mr.. GoldsborouSh-That is not the ques-
ton The government has a perfect right
70 know what the gas company has never
denied
Mr.. Rothermel-How can II do so II you
go and destroy the books
Mr. GoIdsborough-That was done thirty
years ago II was done by gentlemen
long si7ce dead and I do not believe that
any really good purpose can be subserved
by raking up their ashes and exposing
them before this committee. There Is a
moral statute Of limitations as well as a
/ legal statute. and think that thirty years
should be long enough TO make IL appl-
cable
Mr. Cary-Do the descendants stin hold
any stock?
| Mr.. Goldsborough-Some OF them may
and maybe some OF them have sold out
/ The most OF them doubtless have. but
/ that Goes not AFFECT the case. l want q
/ cay IN all fairness TO you gentlemen Of
/ the committee. because ! realize that a.
/ OF you intend 20 DO what IS fair by thi.
| company, Il would be unthinkable tina
YOU could do otherwise do not for on,
/ moment believe that anybody has an
/ idea OF treating the company unjustly
/ but I want 10 call your attention 10 Thu
+ fact. that AT the time this thing happened
/ there were In the management OF thi
| company as distinguished a lot OF mel
as ever lived ia Washington. There wa.
1 Mr. W. W. Corcoran. Mr.. George W
/ Riggs. who just a little previously had
/ been president Of the gas company
among the still living there was Mr.. Q. c
/ Glover. al one time the treasurer Of IN,
company. 7 could name you twenty othe
OF the leading men q Washington-lt &
unthinkable that those people would IN
dertake 10 issue $4,000 Of capital 7 en-
talking now about tho capital issued be
tween the years 1872 and 1850 TO cover NJ
the issue Of which il has been charge
that the books were destroyed-in defanc
Of law IN the defiance Of a law that Con
/ gress had passed within five years. Whe
the Spooner resolution is correctly read
as shall endeavor 10 read IL 70 YOU whe
/ I come 70 argue the case. YOU will Sc
that il proves in point Of fact that capt
talization was issued in a bona ide wa
for money actually received from N
/ stockholders.
Now while 7 am here upon the stand
I want TO read you a few words, and
will put the book in evidence, as 20 n
first $4,000 invested in the plant. I rea
from the History or Washington. d. c..
a publication that was issued In 1892, 90
long before this question arose 20 max
II susceptible 70 an impeachment, a littl
history OF the Washington Gaslisht Com
pany.
Now this article quotes from a circula
published by the company March (. $50
under the signature OF Mr.. Silas II. Hi
a well-known resident Of washington a
that time as follows
The capital now issued IS Sf2i.oO ever
dollar Of which has been judic.ously an
economically expended.
a retort house. containing IS benche,
OF retorts each, in all 81 retorts. Ia
been erected; this was capable Of produC
ing 10000 cubic feet OF gas every twenty
four hours"
/ We produce that much now every hou
and more.
ALSO two gas holders. respectivel!
125.O00 feet and 2S0OOO feet. The numbe
Of consumers had reached 1.6S1."
We have now 5000 consumers.
"A line OF six-inch pipe. over q mil
in length. was laid from the vicinity o
; the Capitol 10 the navy yard with onl
one widely scattered row Of street lamps
with one Of equal size down Pennsylvs
MIA avenue TO Georgetown, or nea
Georgetown.
"The amount paid TO our numerou
employees exceeds an average Of $1,000 pc
month"
And there is about that much Pal
daily now.
Our city taxes amounted % owe
81 900 per annum."
For four out OF the eight years OF tn
company's operation nothing was rea
lied but actual expenses. and since tina
period the beard has been enabled TO de
clare dividends semi-annually Of g. 81
and latterly per cent on the capits
stcck-not at any time more than the las
mentioned rate.
The first $4,000 was lost in making
gas that was then known as solar o
gas, which was not a successful process
Quoting again from the book:
THE board has constantly acted o
the design OF supplying all the inhablte
portions OF the city with gas havin
laid in this period nearly twenty mile
Of street mains"
We now have to-day over 4SO miles.