The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1910-02-05
Monopoly's Proposed Gas
Imitation Will Not Go
UnchalleB9ed.
STATEMENT MADE
ON GOOD AUTHORITY
Resolution Already Prepared and
Congressional Action VIII Re
suit, Is Report.

If the Washington Gas Company
at its annual stockholders meeting
on Monday next takes steps to carve
a s5,OOO,O0O melon, or any other
melon Of sufficient size to satisfy
the demands Of the people who
want bigger returns from their in
veStments IN #, there viii be an IN
vestigatiOn Of the whole financial
status and history of the company.
by Congress or by some executive
department.
This is the statement made to
The Times today on the best lsgis-
lative authority. It is stated that
a resolution has already been pre-
pared, and viii be introduced prob
ably on Monday, and certainly a
day OF two thereafter If on Monday
the Gas Monopoly carries out its
plans for imitation of its capitaliza-
ton.
WILL QUESTION LEGALITY.
The resolution, accordirr ID re-
port, VIII look TO securing fun in
formatiol by dfut of a tho-egeL In
vestigatiOn, and wiz also all for
information as to the LEGALITY and
the equities Of the reeapitaIizatfoa
plan.
The Tines presentation OF the
project Of the gas forces 10 DEFY
Congress, public opinion. and the
community's interests, has caused
many legislators to declare thar
the time is ripe for a determine
ton whether the laws of Congress
OF the schemes Of the zas com
panies are to rule in Washington
1t is declared that if the Gas No
nopoly wants to take the chances
on an investigation and subsequent
legislation, +. can make those
things certain by proceeding with
the project Of expanding its capital
Fractional Fight Reported.
Meanwhile. with Congress becoming
agitated, and with rigorous action
threatened. the gas insiders are in az
uncomfortable frame Of mind There
are stories Of factionaI division hlsids
the company. some Of which are highly
circumstantiaI and interesting
stockholding interests in the company
have united their forces with the pUr-
pose OF putting through the recapitsIi-
zatIon plan on Monday. and that they
have not secured the cooperation OF the
Mclean interest Whether this is the
case it has been impossible to learn
positively. because President Mclean
and Richard H Goldsborough. the gen
era. counsel OF the company, have de-
clined 10 be seen TO discuss the matter
The story is that the Mclean inter
ests, which have very limited holdings
Of stock in the company. but are heavy
holders Of the certificates OF indebted
ness. are still IN hope Of being able, at
some time in the future, to pull through
a recapitaIization plan which ~5u an
able them TO carve the melon in the in
terest, chiefly, Of the certificate holders
Stockholders Suspicious
This would give the stockholders the
small end Of the benefits. II, indeed. it
did not actually inJure. the value Of
their shares There IS much suspicion
among the stockholders about the pos
sibnity OF such a plan being worked
through at some time In the future
The Gallinger bill Of two years ago
was recognized as a measure strictly IN
the interest of the certificate holders
by which they would have made sew
eraI millions in addition TO clearing
away al question about the legality OF
their holdings That plan was, appar-
emily, dropped when exposure was made
OF its real purposes
But the stockholders have never re-
gained fun confidence in the present
arrangements intentions, and report is
that one purpose Of the allied forces
in the meeting next Monday, IS TO force
the adoption of q policy which wiz look
20 stockholders interests primarily. Ac-
cordingly Il is said that the big bond
Issue plan has been forced upon the
presszt management against its viii
Looking To Congress.
With the gas stockholders divided and
Congress and the public becoming more
and more excited about the prospect OF.
imitation. activity BY Congress IS regard
ed as the one method Of conserving pub
lie interest; and that course is consid-
cred certain II any scheme is carried out
such as IS now planned.
Today's information in financial cir
cles Is very definite on The main point