The Washington times., 1910-05-10
WHAT ARE THE GAS COM
PANY'S CRIMES?

In his closing argument before the
House District Committee. Attorney
Richard H. Goldsborough. speaking
against the Godfrey resolution ID pro-
hibit the gas company issuing securities
in the future without specific consent
of Congress, Propounded' a highly per
tinent query. It was contained in the
following paragraph, taken from the
introduction Of his argument
We do not profess. gentlemen OF the
committee. 10 be either infallible or i'm
peCca bic nor pretend Il be above CTIti-
cism or correction We have no special
privileges 70 plead. and whereof We
stand accused we are ready 10 uS urea
but, with an due respect TO its dis
LinguiShed author. We confidently do sub
NIT that We should not be compelled 70
60 10 trial, II any case, upon an m
dictmeht stripped 10 he Duu-tnar
what this bin Isl that charges 40
OffeuSe. What crimes have we commit
ted Ar Chairman u justify the drastic
punishment proposed TO he inflicted upon
US IN and by this measure
There's the milk IN the cocoanut.
what crimes have We committed %
The Godfrey resolution does not charge
that the gas company has committed
any crimes, but It i a fact that the gas
company has committed at least two
serious ofTenses against public policy
and many learned people believe against
public law
In order to understand Just what the
gas company has done IN the past and
what the CoudTey resolution Is intended
to prevent. II Is necessary 10 60 back
to the beginning Of things The original
charter OF the company, granted by
Congress IN lS4s, contained this pro
vision
Section . And be It further enacted
that The capital stock Of this corpora
ton shall not exceed $4,000
There's nothing very ambiguous or
clouded about that. Is there7 That
meant Just what It said. and from ls4s
until 1890 It was accepted by the gas
company as meaning Just what IL said
Between those two dates the gas com
pany increased its capitalization, at
different times. until the total was
S2-OOOO0G, but every time II desired 10
issue more stock It went 70 Congress
and had its organic act amended TO
authorize such Increase
Il was IN 1890 that the company
first lodged the specific provisions OF
It's charter as to capitalization--and
here We have one Of the ofenses con
corning which Mr. GoIdsborough seems
TO be in such utter ignorance The
directors ordered the issuance Of
$500. 900 certificates Of indebtedness- ito
be converted into the capital stock of
the company Al par when and SO soon
as the company shall be authorized
by the proper legal authority to en-
large its capital stock by an issue Of
| 6OOOOO or more
These certificates were. issued 10 the
stockholders as a dividend IN January,
1891 They bore g PEI cent interest,
and in 1896 were converted into stock
authority for an increase having been
obtained from congress five years after
the charter had been actually, If not
technically. violated This brought the
total capital stock UP TO S2.6oo0o0.
where It stands today
Again. IN 1908. the gas company de
sired to increase It's capital II apple.
TO Congress for authority was denied
and straighJway issued To Its stock
holders s2600.OoO in certificates OF in
I debtedness bearing 6 per cent interest,
and redeemable by the company at Their
par value IN 1923. They were worse
THAN the first hatch, which were con
vertibIe into stock. because the company
/ has promised TO buy them back for
cash at the end of twenty years. IN the
meantime paying s per cent interest on
/ them
/ This Is ofFeuze number two which
Mr. Goldsborough also seems 10 have
forgotten This Is the sort Of ex-
ploitation which the Coudrey resolution
would prevent. OF, rather. prohibit IN
less the gas company obtained the
consent of Congress TO the jugglery-
The duty OF the House District Com
nittee- which Is now considering the
resolution. and Of Congress, before
whom It will soon be laid, Is a. plain
as the proverbiaI nose on the face
I - cT--