Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-03-14
THE PALACE

subject to discount at 10 per cent If paid
at a certain time.
THE act of 1862 fixed the price from
the LIST day of July, 1852. at q cents pei
hundred cubic feet of gas furnished to
the government and 80 cents to other
consumers.
Price Fixed at 40 Cents.
1.-The act of January 80, 1866, repealed
said acts Of 1860 and 1862. prohibiting the
company from receiving on and after
December 1864, for the benefit of its
stockholders, a greater price for gas
than 40 cents per hundred cubic feet.
subject to a 10 per cent discount on ali
government bills and 5 per cent for all
other consumers.
THE act of June %. 1874, entitled An
of gas at the rate of $3.50 per thousand
cubic feet furnished the government. and
to other consumers $2.75 per thousand
feet
THE act of June 6. 1896. fixed the price
of gas for the Washington Gaslight Com
pany at a rate not to exceed 81. 10 per
thousand feet until the first day Of July.
1901, and after that at 81 per thousand
cubic feet. This rate has recently been
reduced by the company to 80 cents per
time. but raised the rate to s1.l0 If not
paid then, in clear violation of law.
Net Earnings Shown.
THE last annual report Of the COM
pany. made to Congress February l. 1910.
purporting to give detailed statement
of its business for the year ending De-
cember 81. 1903, shows the net earnings,
after deducting operating expenses, to be
$846, 631.5O. This was IL per cent plus on
capitalization of $5,2OO,OOO, assuming
the certificates of Indebtedness to be
part of the capitalization. II we exclude
the certificates of Indebtedness net
earning Of q per cent plus on the actual
capital stock is reported by the company.
1t goes without argument that such net
income is excessive unless the facts shall
disclose that the actual value of the plant
and the actual amount invested Is far
greater than its capital stock On page
2 Of the report 1t appears that what is
called a regular dividend Of $26O,OOO
had been paid the stockholders, also, an
extra dividend of $26OOOO. or, In all, ~
per cent paid in dividends during the
year. In addition to these dividends the
company expended s2O3,524.OS in extern
sions, constructions. ETC.. and had left
surplus of $236 355.O3.
when this report OF the company for
1909 Is considered In connection with Its
lative journals OF Congress, and as shown
by the various reports of congressional
committees, it would seem to be the
duty of Congress to inquire fully into the
affairs of the company.
Dividends Declared.
From the hearings had by former COM
mittees Of Congress, and from their re-
ports. it may be learned that the divi-
dends kept pace with every increase in
the capital stock Indeed. the company
appears to have been unable to increase
the capital stock fast enough to keep
the dividends at a reasonable rate on
their face.
1.-The treasurer of the company, in a
letter to Samuel ]. Randall. in 1881, de-
clared that for the thirty-one and one
half years the average of cash and
stock dividends had been Is $40 per cent
After 1881 the dividends seem to have
averaged much higher: 10 per cent in
1882; 50 per cent in 1883 on $4,000. 600
capitalization, 10 per cent In 1884, l21h
per cent in 1888, although the company
earned 17h per cent, according to the
SpOoner report.
ION February 3, 1896. the company, in
answer to an inquiry, informed Congress-
man j. w. Babcock that the company
had paid in the year 1895 dividends In the
sum Of 100000, or more than o per cent
on its capital stock and had remaining a
surplus Of $so.922.as. 1t must be con-
coded that Congress has the power to
regulate the charge for gas. How can
Congress exercise this power with JUS
tice to the company and the public in
the absence of information touching the
facts sought to be elected by this reso-
luton.
Entitled to Fair Returns.
THE company is entitled to a fair and
reasonable return on its investment; the
value of the investment in dollars must
be known in order to determine what
would be a fair and reasonable return.
This return must be paid by the public.
From every standpoint the inquiry should
be ordered.
Again, the inquiry should be ordered
to the end that a proper standard for
the capitalization of all public service
corporations may be declared established
by Congress. Capitalization is the key to
governmental control and regulation Of
all corporations subject to its Jurisdiction
The company under discussion and in
quiry furnishes to Congress an immediate
opportunity to declare a wise and pru-
dent public policy In respect to capitalize
ton OF corporations generally. The op-
portunity should not be lost"