Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-03-31
PROMISED AID AFTER THAT
Members Of House Committee Give
Advice to Citizens.
E. H. TUCKER CITES CHARTER
Says Provisions Have Been vio-
lated by Issuance of Stock
Certificates.

w 10 lHe courts. Demand the for
feiture of the charter of the Washing
ton Gas Light Company. Endeavor to
obtain the redress you desire by the
process prescribed by law.
If you are not successful in this
effort, then come to US and we'll see
what can be done"
he above is the substance of what
was said by several members of the
House District committee this morning
to representatives Of Washington citi-
zens' associations who appeared before
the committee today to argue for q
favorable report on the resolution. in
troduced by Representative Coudrey Of
Missouri. forbidding the Washington
further certificates of indebtedness, etc.
Representative Cox of Ohio expressed
the opinion that the District committee
was tired Of acting as a policeman.
Representative Moore Of Pennsylvania
talked the same way.
No Action Is Taken.
But the committee, as whole. express
ed no views whatever. The hearing on
the Coudrey resolution will be continued
Monday morning at 10 o'clock.
AS usual, the District committee had q
fearful time getting a quorum together.
AT 1920 o'clock-the time set for the
hearing, only three members of the COM
mittee were on hand
Representative Coudrey of Missouri
author of the resolution. was one OF
these. But after waiting five minutes or
SO. Mr.. Coudrey mentioned, casually, that
he had an engagement and disappeared.
He did not come back
BY IL o'clock six or seven of the nine
teen members OF the committee were OH
hand-an excellent average for the pres
ent session. The hearing was begun.
Text of Resolution.
Following is the text of the resolution
under consideration:
The Washington Gas Light Company
and the Georgetown Gas Llht Company,
or any other gaslight company in the
District of Columbia, each and all, are
hereby prohibited from issuing any bonds.
certificates of Indebtedness, or any other
of debt as shall actually be required for
the payment of necessary betterments
and improvements only, without the ex-
press consent of Congress"
b6IoTG EVAN II. 1uckeT, pTeSlQ6nt OF
the Northeast Citizens Association, the
first witness, was permitted to testify
Representative Pearre of Maryland
wanted to know if the Washington Gas
Light Company contemplated issuing any
certificates or increasing its indebted
ness in any way.
Attorney Goldsborough, for the COM
pany, explained that some of lthe COM
panys bonds soon would mature, and
that something of the sort was under
consideration.
Tucker Cites Gas Charter.
Mr.. Tucker. beginning his statement.
said he represented consumers of gas.
none of whom. SO far as he knew. owned
any stock in the Washington Gas Light
Company. Personally, he said, he had
company, which, SO far as he knew, was
honest in its dealings with the individual
consumer
But" said Mr. Tucker, this resolu-
tion is entirely inadequate and unneces-
sary. The original charter of the WASH
ington Gas Light Company has a clause
in it superior to this. but which. just
the same. has been repeatedly violated"
In reply to questions. Mr. Tucker said
he referred to section 10 of the charter.
Indebtedness by the issuance of GER
tiicates or anything of the sort which
might circulate as money. or anything
which constituted promise to pay.
In view of the fact that the charter
this provision. which he in
sisted had been entirely ineffective in pre-
the. company from issuing Ger
of Indebtedness to the amount OF
s., ,60O 900. he declared there was urgent
for the passage OF legislation
which could be enforced. and which would
prevent the company from doing as 1t had
done in the past. with some penalty pro-
5ided that can be imposed.
Company Is overcapitalized."
"The capital stock of the Washington
Gas Light Company" said Mr.. Tucker.
"amounts to $26OO.OOO. in addition to
which there are 100000 in certificates
of Indebtedness and $59S, 100 in bonds, q
total face Indebtedness Of S.. .78S, 700.
Every once in a while the Washington
Gas Light Company asks Congress for
the right to increase its capital stock.
This Is ridiculous. The company is over.
capitalized now.
.'At the price the stock sold yesterday
the purchase of the company, and the as
sumption Of its additional Indebtedness.
would cost a minimum of S12, ,29S. 7OO."
Mr.. Tucker told the committee that
the company's object in issuing the
s. 100000 in certificates to stockholders.
on basis of dollar for dollar of the
capital stock. was nothing more or less
than a scheme TO use up the surplus OF
the company in paying interest in these
certificates so there would be no argu-
ment, on account of immense dividends,
I'm favor of a reduction in the price OF
gas. This scheme, he insisted. was in
gross violation Of the charter provision
he had mentioned
estimate Of Profits.
Calling attention to the fact that the
interest on the S26OO,OOO In certificates