The Washington herald., 1910-04-14
GAS QUESTIONS BEFORE THE HOUSE COMMIT TEE

until the next day in the house she lived
in. She never used any gas at 800 Ninth
street northwest, the Ist 70 the 18th of
the month. and yet the gas company said
that they would turn or the gas unless
the bill was paid.
That IS only one instance There are
many that I could cite here. 1 also want
to call your attention TO something which
l discovered. When the new depot was
being built. you took up the street mains
and branches. did you not?
Mr.. GOldsborough-The District OF the
government did.
Mr. Cary-The gas company's mains
were torn up?
Mr. GOldsborough-Yes sir.
Mr.. Cary-Now. would Ike 70 ask you
a few questions. You say the electric
light company is capitalized for twice as
much as the gas company?
Mr. GOldsbOrough-Yes sir.
Mr. Cary-How much water DO you
figure in that capitalization?
Mr.. GoIdsborough-I do not know any
thing about that. I never had any pro-
prietary interest in It. and could not
answer that question at all
Mr. Cary-What does your gas company
think its franchise is worth?
Mr.. Goldsborough-I think its franchise
has been valued at 10000.
Mr. Cary-You issued stock 10 that ex-
tent, 10 the lint Of the franchise?
! Mr.. Goldsborough-No. sir; we have not
Mr.. Cary-How much stock have you
issued?
Mr.. GoIdsborough-None on the cost Of
/ the franchise. not a dollar.
Mr.. Cary-Do you figure your franchise
the same as your coke, and by-produets,
/ and tar and everything else2
| Mr.. Goldsborough-No sir.
| Mr.. Csry-It IS all figured on the d!yi-
dend is 1t not?
| Mr.. Goldsborough-NO, sir. This state
ment that We have submitted 70 you for
the physical valuation OF the properties
( runs uD 10 between nine and ten million
dollars. But I DO say this that It Is
undoubtedly the law OF the land that the
company Is entitled 20 make earnings on
the value Of its franchise.
Mr.. Cary-Not 70 issue watered stock.
though?
Mr.. Goldsborough-I Go not believe any
company IS entitled TO Issue watered
stock
Mr.. Cary-In regard 10 your stockhold-
ers. co you make each stockholders name
known IN that report that you print?
Mr.. GoIdsborough-We endeavor 10 do
so honestly.
AIr. Cary-Do you mean to tell Us, 10
tell this committee. that you have not a
dummy on that list?
Mr.. Coldsborough-Not one.
IL
ing &c intelligent men?
Mr.. Goldsborough-Yes; highly tntelli-
gent men.
Mr.. Cary-At least we think we are.
laUghter)
/ M GoIdsborough-I know you are.
Mr.. Cary-Do you mean you have not
one dummy on that list OF stockholders?
Mr.. Goldsborough-That list Is made
out in this way: Every three months the
books are closed. when q dividend IS 10
be paid. II so happens that on the 1st
Of February a regular dividend Is due
Therefore, On the 18th day OF January
We make Up a stock list. and the books
are closed on that list. when the report
Is made from the stock book. or course.
, a man might own 800 shares OF stock
, and not have il recorded He could go
l and get the dividend from the man IN
, whose name the stock stands. He might
, have a loan upon Il. he may have L
Ihypothecated with some bank or trust
company which would stipulate that tho
, title 10 that stock should be in tho
p company. I have a pretty fair knowl-
edge OF the affairs OF the company. and
b. 7 can truthfuTy say that I do not know
, OF any dummies or the books.
= Mr. Cary-You DO not know Of any
Congressman or Senators owning stock
3 in the gas company?
e Mr.. GoIdsborOugh-No; 7 DO not know
E one, and am free to say that 90 not
! believe there IS any member Of Congress
s or any Senator who owns a share OF
stock. directly or indirectly. IN the gas
r company,
Nj Aiken-Who is the principal ownerF
Mr.. Goldsborough-A lady by The name
. OF Preston. in the city CT New York. She
! owns 5000 shares. She was grand
) daughter OF a celebrated man here. Cen
PaCifcus Ord The Letter estate owns
+. 5000 shares. The Wizards here are quite
4 large owners OF stock, believe, and
? there are a number OF others who own
- considerable amounts 7 do not know
L OF ANYBODY who has individually as much
Y stock as Mrs. Preston. There are about
/. LOO stockholders, and the stock list
= shows that the average IS well under I0l
y shares; about fifty or sixty shares each.
= Mr.. Aiken-Is Mr. Mclean interested IN
+ II at all?
e Mr.. GoIdsborough-AIr. Mclean has a
small interest I do not believe his in
- te7est exceeds 4o0 OF 500 shares.
l. Mr.. Aiken-Does he own any indirectly
d Mr.. Goldsborough-I do not believe he
y has any stock that does not appear d.
I rectly on the list in his name. OF course,
y II he had other stock It IS not likely
6 that Il would be held IN small lots.
r Mr.. Gary-Is Il not fact that Nr.
e Mclean owns the control Of the stock
Z IN the gas company?
$ Mr.. Goldsborough-Oh, no; never at any
q time. He has never owned at any time
n as much as one-tenth Of It.
i Mr.. Cary-You mean the stock placed
g on the books?
;. Mr.. GoIdsborough-I know from nv
o knowledge Of his business, because my
5. relations with him as counsel have been
e very close.
y Mr.. Cary-You say the dividends Of the
company are very small and yet your
o stock originally started out at go and
now il Is so and over?
Mr.. CioIdsborough-When you come to
It think Of It. that Is not extraordinary
4 The amount Of money that was put into
this company in 1S51 was S5ooooo. and II
II Invested anywhere in Washington It
It would have produced a very much larger