Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-04-14
GAS QUESTIONS BEFORE
THE HOUSE COMMITTEE
General Counsel Go1dsborough Declares That All
the Washington Company Asks Is
Fair Return on Its Investment.

has any stock that does not appear di-
rectly on the list In his name. OF course,
| II he had other stock It is not likely
that 1t would be held in small lots.
| Mr.. Cary-Is it not fact that Mr.
| Mclean owns the control Of the stock
| In the gas company?
| Mr.. Goldsborough-Oh, no: never at any
time He has never owned at any time
as much as one-tenth of it,.
Mr.. Cary-You mean the stock placed
| on the books?
Mr.. Goldsborough-I know from my
| knowledge of his business because my
/ relations with him as counsel have been
very close.
MIR. Cary-You say the dividends Of the
company are very small, and yet your
STOCK originally started out at $50 and
| now 1t Is $40 and over?
| 4..r. Goldsborough-When you come to
| think OF it, that is not extraordinary
| Inc amount of money that was put into
| this company in 1851 was $500. 600 and II
| invested anywhere in Washington it
| would nave produced a very much larger
return than has been enjoyed by these
stockholders. The company has a very
! large amount of real estate, something
| IKE 2oO or 800 lots. valued at two or three
1 mliiion dollars. I cannot tell you pre-
| clseiy' because I haven't it In my mind,
| put IL is very large amount. It is we'll
seiected property. 1t has greatly increas-
| ed In value since its purchase The
| company has been under the manage
| ment OF highly successful men, who have
| taken care OF it as they have taken care
| OF their own affairs, in a conservative
| way. and naturally it has grown and
| prospered l do not think any better
evidence can be shown Of the fact than
tnat whereas the population since 1853
mas increased from 40, 600 to 400 600. lust
I'ooo per cent, and taxes Of the COM
pany have increased 1876 per cent. They
are now $1,000, and probably this year
| tney VIII approximate closely to $3.50, 600
AR. Cary-You stated, Mr. Goldsboroush.
that the gas company took it upon them
selves to print these hearings in the
newspapers.
| Mr.. Goldsborough-Yes. sir
Mr: Cary-To enlighten the citizens or
consumers OF Washington as to what was
gong on before this committee?
| Mr.. Goldsborough-Yes, sir
MI. Cary-It has been rumored, though,
and the talk is that 1t was evidently done
TINS advertisement, SO that they would
not be so strong in opposing the gas COM
paIy Is there any truth in that?
Mr. Goldsborough-I do not believe there
is; not the slightest 1 do not believe there
| is any truth in it.
| Mr.. Cary-Do you think that corpora
tons do anything like that?
| Mr.. Goldsborough-I think that question
carries with 1T reflection not only on
the gas company, but also on the news
papers. which 1 am sure you are not seri-
ouSly making.
Mr.. Cary-I am talking now as menu
Der of this committee.
Mr.. GoldSborough-I have a perfect
right to express that opinion.
| Mr.. Cary-I am trying to find out what
| I can.
Mr.. Goldsborough-And 1 am trying to
answer Your question. and I tell you
frankly II was done, just as ] said in this
statement, because ] wanted the people
or the city of Washington to be taken
into the confidence of the company In
order to promote the establishment of re-
lations with us that would eventually
prove to DE mutually satisfactory. 1 think
the people have equities, just as you do,
and l think it is the interest of the COM
pany to regard those equities and to en-
courage and promote them.
| Mr.. Cary-That is what we are irving
| to do
| Mr. Rothermel-Mr. Goldsborough. /
want to ask you a question, because
had a wrong impression. You spoke a
while ago of having reduced the price of
! gas within a year two.
| Mr.. GoldSborough-On the 1st Of last
! July.
| The Chairman-We do not hear you.
| Mr.. Rothermel--I asked him when he
| reduced the price of gas
! Mr Goldsborough-On the 1st of last
| July
| Mr. Rothermel-What was the price of
gas?
( NIL uOIlaT.
Mr.. Rothermel-Then you reduced it to
| 80 cents?
! Mr. Godsmorough--Yes And | want to
say this. if you will permit me to do So
( Mr. Cary-By the way. they did not re-
I duce it to 80 cents. They only take off
! 10 per cent if paid within ten days.
/ Mr.. Goldsborough-They reduced the
| price OF gas 10 cents a thousand. OF
course we have provision in the law
which is similar to provisions applying
1 al rat has lyy,ax ~
piled here, that if a party does not pay
his bill within a certain time he shall
pay the top price, the gross price.
Mr.; Rothermel-But year ago party
could get gas for 81? Is that right?
Mr.. Goldsborough-Yes. Now he can
get it for so cents.
Mr.. Cary-If he pays the bill within ten
days?
bill within ten days. and if he don't he
gets it IL cents cheaper per thousand
| than he did when previously in default,
| because previously the price was $1.25 If
! he did not pay promptly.
Mr.. Wiley-If I understood those bills
you read, Mr. Cary, they were for March,
1903?
Mr. Cary-From 1907 to 1909
| Mr.. Wiley-1f l understand him cor
rectly. the price was reduced in July,
1903. and the query is whether these
! bills do not antedate the reduction in
/ price.
| Mr.. GOldSbOrOugh-In answer to Mr..
RothermePs question, want also to sub
nit this proposition: When we reduced
! the price 10 cents nominally, 10 cents a
| thousand in point of fact, We reduced
| the profit that the company was making
| by at least twice that amount, SO that If
| the company were making at 81, say, 40
cents in round numbers. at 80 cents 1t
| would make only 30 cents, and therefore
| the reduction would be, in fact, % per
cent. The company has stricken or with
! one stroke of the pen over 25 per cent
of it's profits. Now, if it We're to reduce
| the price 10 cents more. ii would take
Is 1-3 per cent of what is left. and 1 SUBJ
! NIT that when a company has voluntarily
made such a large reduction as that it
| had one years time to test it In, to pro-
coed to another reduction.
| My own belief is that as soon as the
company has had time to see that it
can afford to make another reduction in
justice to its stockholders and the pub
| lie it will do it. But l think to require
| it arbitrarily. willynilly to make so large
q second reduction as that within year.
| before the company has had the oppor-
tunity TO test the first one, would be,
or. at any rate, would have the appear
| ance of being, little arbitrary.
| Mr.. Coudrey-Mr. Goldsborough, If there
was reduction in price. is 1t not fact
| that you also issued an extra dividend
| of about $4,000 during that time?
| Mr. Goldsborough-There was an extra
| dividend declared, which was paid out OF
| the surplus of the company.
/ Mr. Cary-The consumers paid 1t, not
| the company, did they not?