The Washington times., 1910-04-11

had 5000 shares at s25 each, making
$4,000 IN stock Now they said. IN
crease by legislative fiaJ-I use the
word fist but they proposes I 70 IN
Cates to 800 IN value, and then let Us
consolidate on that basis. The uti-
norlty committee say that this would
increase the capital stock Of the con
s0lidaIed company from S2.750o9o to SlSs-
$1,000. an increase Of Sil,003OOo. 'un-
represented by a single additional dollar
IN cash or property
Nov, tliat proposition vas contained
In the bill This was the minority re-
port
The Report
% We contend that in dealing With
public utility corporations Congress
should continually keep in mind the
right OF the people to obtain the serv-
ice at the lowest cost commensurate
with a fair return upon the actual Ia
vestiment'
Following this action Of Congress
which. an ordinary person would re
gard as a pretty good, fair notice TO a
company that they were not TO increase
their stock, issued S2,e00.000 OF what
they called dividend certificates Of IN
debtedness. They divided them as a
bonus. pro rata, among their stock
holders; and they are the Identical divi-
bends or certificates that now show their
head in this report. and that now con
front Congress for another Donation
and another increase of the stock wiich'
with other things demanded, IS TO bring
this company within the protection OF
the rule IN the New York consolidated
gas case. as decided by our Supreme
Court
The reserved power has always been
in Congress to control the capitalization.
1t IS there now They never let II out
but once once. in -ne law of lssS. they
H. 70
the Supreme Court OF the District or
Columbia The first time II was m
V0ked-aboUt year or a year ana q
half ago-right in the midst OF the FRO
CCedings, before they got through with
them hearing Congress stepped IN ana
repealed che fifth section Of the act or
1885 that contained TIE power, and re
stored tFt' sta I Gu" OF tEelr reserved
power Were l. STANDS today
Only Cash Dividends.
They are prohibited squarely and
straight from declaring a dividend ex-
cept It is payable IN cash. Now look
at those $4,000 dividend certificates
You know that stockhoIder has no
individual property g.. the funds or
earnings Of a corpors IN until his divi-
dend is declared and set of and fixed.
DO YOU suppose that they declared q
dividend in favor or $500. 600, by which
they would have the right TO deliver TO the
segregated, that amount 20 90 back %
them2
''Second-Can you pay a dividend with
a debit This IS debt. counted into
the capital upon which the price OF gas
was to be calculated What was Il is
sued for2 For materials Furnished For
labor peTformed2 If 50, why would not
the man who furnished the nnaterIa! and
The one that performed the labor hold
the evidence Of the debt2
The Main Objection
You cannot have an abundance Of
money in your treasury and then issue
bonds and put the bonds in your own
pockets That is all we are Directing TO.
And you cannot md a sharper set
Of men than are at the head OF this
company They are handling this prOpO-
sItion for m0n1v- They are maEfUg
stern, strong determined fight 20 keep
the consumer down. Why, they have
declared dividends At times, gentlemen.
OF 80 per cent and 20 per cent Why.
says Here Is another chance 10 divide
I'D three OF four millions or a couple Of
millions more. II We can only issue
Ihem- and We would II II were not for
this resOlut on Of COudrey's.'
This joint resolution IS honesty and
integrity, and YOU know Il, every one
Of you II ought 20 pass And then
go 10 WORKOUT the searchliEht on. and
find out what YOU can on his question
Of the price Of gas.
Fair Return Permitted.
In the New York consolidated gas
case the supreme court said. Public
service corporations, such as gas com
panies, are subject 10 the legislative