The Washington times., 1910-04-13


but %hGlo-only ne-ha1 the amount
that we Dav IN faxes-
We pay Sl3l. G0J. 7 am only mentioning
these companies as Illustrations OF the
point I am making Our business is
as large as the business OF the Capital
TRACTION Company, for example, and
. track We have four hundred miles Of
mains. Why, / can show the commit
Zee that over nifty years agO-I have
the evidence here in this boOk-S500.-
GOO, large sum in those days, was
required TO equip 4 plant for thirty
miles Of these mains At that time the
company was paying S1.0oc a year in
taxes upon the $500 900 plant. The
, the tax bill 13I times larger We are
making more gas per day now Jhan
We dld IN a month at that time / can
prove 10 the satisfaction q the COM
mittee by every lu-- Of valuation
known TO engineers that this company
| Is entitled 10 a capitalization of at
not including its franchises. SO
think IL would obviously be very un-
fair TO say that. although We are tax
ing you upon more than Sl0.00O,00O
ing the fact that you nave come for
ward voluntarily and gone under A
constantly increasing taxation yoke
from time to time. and consented 70
il, yet we shall because we have the
power 20 do II. deny YOU the privilege
OF having that property capitalized.
II IS capitalized by operation Of law
II makes no difference VINO owns the
property Take. for instance. the
company that operates the Phtia del
phia Eas system II does not ow-s an
incn Of the mains, IL owns none o. the
{ holders. IL owns practically none or
the plant-aU of that belongs 70 the
city OF Philadelphia. and IS leased by
u 10 the operating company. Take
the Cincinnati Gas Company, as en-
other instance. The operating c5m-
pany does not own the pie ut. II leases
question OF who owns this property or
Z how this property was acquired.
whether the company destroyed the
books thirty years ago OF not has
should not be permitted to obscure
your Judgment rs to the Teasona BILE
ness Of our earnings.
Mr.. Rothermel-Is that correct
{ the booksZ
/ Mr. Rothermei-Yes. sir.
/ Nir. Goidsborough-Yes, sir; undouot-
eddy
/ Mr.. HazIeton-They sold themg
M GoldsbOrOuEh-Tbe books were
sold. and they were destroyed ! am
willing to concede thst they were burn
I ed for the sake Of argument. That has
nothing on earth to 90 with the con-
/ trOversy.
Mr.. RothermeI-WouId not the Gov
Z eminent have the right 10 look into
that a. part Of the history OF the COM
Mr.. CoIdsborough-I should not think
So
( 10 see what the company has been de-
7 iuE2
( Nir- GeIdsborough-That is not the
question. The Government has per
( feet right TO know what the Gas Com
psny has never denied.
Mr.. BothertneI-How can % do 50 u
you go and destroy the bsokss
Mr. GOldsbOruuEh-That was done
g e HHaH
! gentleman long since dead and 7 GO
not believe that any real good purpose
. can be subserved BY continually raSlnE
I'D their ashes and exposing them be
fore this committee There IS = moral
9 statute Of limitations a. well as a
{ legal statute. and 7 think that thirty
years should be- long enough "a make
! aIr Cary-Do the descendants stia
hold any stock
: Mr.. GoIdsborougn-So Of them NAV
and may be some Of them have sold
{ out The most Of thenr doubtless, have,
{ but that does uo- affect tne case
Z want 10 say In ali fairness 20 you gen
{ tIemen Of the committee, because
I realize that all OF YOU intend TO 90 what
IS fair by this company i would De
unthinkable that you could co Ct'eTWISe
anybody has any idea of treating the
company unIusJly- but I want 70 cdil
yOuF attention TO THIS faCfs tflal a. dIlo
about the time this thing happened
there were In the management % this
. company as distinguished a lot OF men
as ever lived in washington There was
Mr. ". w. Corcorsu- Mr. George W
8 Riggs. UlO lust q little previously Iau
g been president OF the Eas Compa ny
smonE the sJiU living there was MI
. g =. Glover, who was 40 one time the
- treasurer OF the company could name
YOU twenty other or the leading men OF
. Washington j. unlninkable thal
those people would, or any them under
take 90 issue Ss1n.el0 Of capital am
Cd a-H -
{ tween the years 1872 and 1850. 10 cover III
I the issue Of which il has been charged
I that the books we're destrOyed-in the
/ defiance Of law n the defiance Of a IA -
that Congress- rad passed within five
: years When TIE SpcOner resolution Is
4 correctly read. Us 7 shall endeaVor %
read Il 10 you when come 10 argue
/ the case, YOU viii see that Il proves "
I point OF fact that that capitalization
f. was issued in a bona sde way for money
actually received from the STOCKHOLDERS
Now while I am here upon the stand
want 70 read you 4 rev WORDS. allt
viii put the book IN evidence IS 2.
the 6rst $4,000 put IN the plant
read from the History Of Washington
/ .. c." publication that vas ISSUED
IN 1872 too long before this question
arose 10 make II susceptible TO impeach
rlent. a little history Of 'the washington
Gas Light Company
i Now. the article quotes from n Circu
lar published by the company March 4
1886. under the signature OF Mr. Sila.
h Hlll- q Weil-knOWEl resident OF W ASH
iugton Al that time. s follows
The capital now issued is $4,000
1 every dollar Of which has Deen Judi
! CiOusIy and economically extended
"A retovt house. containing twenty
eight benches Of three retOrtS each. il
IAN eighty-fOur retOrts, had been erected
this was capable OF producing $4,000 GU
bic feet OF gas every twenty-foul
hours.
and more
Also. two gas holders, respectively
-, 600 feet. and $4,000 feet The mum
her q consumers had reached 1881
We have now 5000 consumers.
a line OF siX-inch pipe, over milk
in length. was laid from the vicint!
of the Capitol to the navy yard witt
ioniy one widely scattered row o.
street lamps. with one Of equal SIZE
IdCwn Pennsylvania avenue TO George
t..wn. or near Georgetown
The amount paid to our numeTo 9'
lemplOyes exceeds an average or S-,eV'
per month
And there is about that much PaiC
daily now
Our city taxes amounted to Owe
$1,000 per snnuU.
For four out OF the eight years o
the Compsnv's operation nothing wa
realized but actual expenses. ans
since that period the board has beer
enabled TO declare dividends semi -an-