The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-04-14

being a party TO IT, SO far as Mr.. Nc
LEANS interest is concerned. l do not
believe he has any very considerable in
terest in the Rosslyn Gas Company lie
is largely interested In the railroad over
there. and so am /. for that matter-the
Old Dominion and Great Falls Railroad.
Consequently we want to build up Rosslyn
as fast as possible. and are ready to con-
tribute 10 the encouragement Of the build
ing OF houses there.
Mr.. Cary-If the Washington Gas Com
pany were making such enormous divi-
dends that they did not care 10 admit;
in other words. to publish TO the public
what would prevent them from having
franchise in Rosslyn, Va, and TO capital
ize the company in Rosslyn, Va, say at
$50 O00.Oe0 and consolidate all the compa-
MES i'm the District of Columbia with the
Rosslyn Gas Company. especially If the
agitation Is successful that the Post is
now working up 90 have that county come
back into the District? All would come
/ back with IT, would IL not?
Mr. Goldsborough-I viii answer that
In this way: There are other gas COM
panies around Washington. There Is one
at Hyattsville and one at Chevy Chase,
and il would not be at all necessary. If
4 the gas company wanted to get under
| that kind OF cover. 10 employ the Ross
| lyn company. II could go and buy n
charter in West Virginia. as the electric
light company originally did, and thore
is no law that could be invoked 70 de
prive the stockholders of the company Of
the right TO sell their stock 20 anybody
outside For instance in 1895 a New York
syndicate came down here and bought
fourteen or fifteen Of our leading public
utilities They bought the Metropolitan
Railway. and they bought the George
town and Tennallytown, and the Ana
costa. and Brightwood. and so on-any
number OF them. They also bought the
electric light company. and tried 10 buy
the gas company They have the right
to attempt to buy the gas company. now.
and the stockholders OF the gas company
have the right to sell their stock TO that
syndicate II they desired They offered
them $50 a share for IL then. and that
was twelve years ago. and the business
Of the gas company has more than dou-
|
fused. but they could have accepted that
offer. This suggests one Of my objections
TO this resolution. The stockholders
owning the property have the right. not
only 10 sell. but TO lease II II they want
ed TO 10 anybody. Whoever took Il
would have TO take Il subject 10 the OBJ
, legations imposed by the law in force
/ in the District OF Columbia. and subject
to the limitations Of its charter. and al
that sort Of thing. There is no method
whatever I'm this country that I know OF
by which you can take away n man,
property, and condemn it without du,
process OF law Every man IS entitled
; TO HIS day I'm court.
Mr.. Cary-But you can prevent IT'S IN
creasing its stock in the District Of
Columbia.
Mr. Goldsborough-That IS a dlfHeren
matter. You cannot prevent any one
however. from increasing his capital
You can prevent a company from issuinl
stock against Il. but you cannot proven
it. when II is necessary 90 do so. from
: putting more money into its business
: Suppose one OF these plants were to burr
u down tomorrow. Could the government
or anybody else come forward and say
''You shall not rebuild that plant: yor
:. shall not put more money I'm it, OF sa,
. TO the president, You shall rot 20 4
the banks and borrow money" Suppos
II a fire should break out-that happene
S only two or three years ago. Gould IL b
said that the company would not hav
II the power to go and borrow money an
capitalize that plant again? Why. Ger
'r tainly not
y Mr.. Cary-Borrow the money. but no
issue stock2
p Mr. GOldsborough-No. But II woul
lie have a right to have returns upon tina
money. Do not forget that, FOR that
e our case II would be thus capitalize
'e in fact and in law just as absolutely a
though you issued stock against il. Tha
1t Is the reason why we are here claimin
that the real thing TO be considered no.
of is the value OF this property II Il ma
five million dollars Of value in II IL
n entitled to make earnings on five mi
lions. \ company capitalized with on
rs hundred millions. but with five milio
only Of property could not claim T,
IN turns on one hundred millions simpl
re because Congress authorized it TO issu
s. one hundred millions 1t can only Clail
as right 10 a reasonable return upon ii
as value OF what II employs for the COZ
ne venience and use Of the public II serves
h. Mr.. Cary-That is all we are asking 4
In this committee.
as Mr.. GOldsbOTOugh-I hope 20 satisfy Il
G committee that that Is all we want.
he The Chairman-The next witness II
OF gentleman will please give his name ar
ny business 10 the stenographer.