The Washington times., 1910-05-22
In the Mail Bag
Truth About Gas.

To the Editor OF The Washington Times:
Listen to the pathetic story from the
closing argument of TIE gas -company's
attorney as printed in Report OF Hear
ings on II. j. Res. 49, page 2O1:
"The fact IS this: That the immediate
result Of the passage Of this resolution
will be TO put a cloud upon the COM
pany's ability 70 refun5 its outstanding
8 per cent liabilities (now due and pay
able) into long-teIm five's. This means
that the company will have to indefin-
itely continue to pay $4,000 annually
that might otherwise be saved for the
use and benefit OF the consumers. In
effect, II is equivalent 10 your saddIlng
the people with $4,000 extra capital
upon which the company Will have to
earn the said extra interest CS26.O0O) an
nually from now on until the principle
becomes due-when the company will
have TO go into bankruptcy unless it is
in the meantime relieved OF the fnan-
cial impotency imposed upon 1t by this
resolution"
The facts are these according to the
Congressional investiRation):
Page 24s. The dividend certificates of
Indebtedness are ISSUED by way Of
Page 95. But they are prohibited Cby
charter squarely and straight from
paying a dividend except It IS payable
in cash"
Page I42- Mr.. Coudrey-Yet you de-
clared a dividend Of 100000?
Mr.. Whitwell-We did not declare II
IN cash II was not a cash dividend "
Page IA. Mr. Whitwell-It was a 100
per cent dividend but not IN cash.
Mr.. Whitwell-When we declare a
dividend Of 100 per cent II increas ases the
liability OF the company exactly that
much. S2,000)0"
Page 90. Section Il Cof charter says:
That each Of. the stockholders OF the
Washington Gaslight Company shah be
held liable in his or her individual cap
aclty for all the debts and liabilities
Of the said company, however contract
as other debts or liabilities before the
court or tribunal having Jurisdiction Of
the case
Clearly here IS an act by the gas
company in distinct violation OF its
charter rights and obligations 70 the
public
The interest paid on these dividend
certificates Of Indebtedness" amounts
to cents on every LOO feet OF gas sold.
or a total OF S156.0No per wear. Every
time a const mer pays his bill for. say
=, = cents OF u goes 20 pay the interest
on these securities which were given
10 lil- eitchlo4GeES Tor notNlrE- Not a
dollar was paid for them. Il was just
as II YOU or 7 would sta n a printing
press 20 make money, give II TO our
friends and say. Here. we are earning
so much money that We must hide n
from the public IN some way. You can
draw 8 per cent interest as dividends
on this piece Of paper that 7 give YOU.
and stiN draw your regular dividend o.
10 per cent on the other piece OF paper
called stock"
Last wear there was an extra dividend
OF 10 per cent 50 that each stockhoIder
received a regular 10 per cert. and extra
10 per cent. certificate Of Indebtedness''
s per cent-a total OF 26 per cent dlvi-
deuds.
As was well stated az the foot Of
page N of the Congressional report
You cannot beat that on the line of
making money. That viii beat the
Standard on COMPANY on a certain
line They are handling this PROPOSE /
tiOn for money. They are making a
strong. determined fight 70 keep the
consumers down"
How much longer IS the United States
District Attorney and the grand fury-
going 70 allow this method. Of Tn2S
stockholders taking money from the 80 -
0Oo consumers, I'm apparent open de- |
fance Of charter and Incorporated |
rights?
Enforce the Iawi
Very respectfully.
WALTER L SWANTON