Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-04-29
Counsel Go1dsborough Analyses
Law and Facts Involved.
REVIEWS ENTIRE TESTIMONY
p.; of the CORPORATION the Public Clearly
Observation-Disclosures of Witnesses Answered in Compre
bensive Areunent-Many Popular Fallacies Exploded
ADVERTISEMENT

v,.,,ouins is the report OF the SESSION
lost night of the House or rep
80. oor,n,tttee ON the District OF Coiuiii-
hso in its hearing on Representative Cou-
-. hill relating to the washington
Gas Light Company. s nv
rha committee met at pm, anu 0i'
sanford Whitwell. assistant secle..'
of the company. took the e'a"u
Whttueu. In response to inquiries from
Mr.. Coudrey, stated that he hau cal
fuIlv prepared a statement showing ''.
gross earnings the net earnings 'iie Ai~o0
charges and the dividends annuaii! sii00
1886 or twenty four years; also sho"Ane
the percentage OF earnings TO the JUN
value of the investment for all Oh uioSo
wears but had not computed the pei
centaxes earned upon the value Oh uio
plant which was largely in excess VI inc
book or cash value. He explained 'la'
Humphreys & Glasgow appraised the dp-
nrecintion on book value in ISIS to De
100 per cent above cost, and tnat the
New York syndicate FOR whom eiiS ap
praisement was made thereupOn' oileteu
$500. eco for the property, althouSh IIe
book value was less than $o,OOo.OUn He
said the earnings applicable to dlvidehos
on the stock averaged 1I.SO per cent, on
THE book value $50 per cent, ana that
cent on the actual value; that during the
itwenty-four years the company had paau
a scrip or certificate of Indebtedness
dividend OF 100 per cent declared in 1Jo2'
Got Extra Dividend.
Mr. Goldsborough asked the witness
whether that dividend made the stock
holders any richer. Mr. Whitwell replied
that each got an extra dividend of so
Der share in an evidence OF debt due
practically by himself to himself.
Mr. Goldsborough-Can a man make
himself richer by issuing notes to him
self or selling his own notes secured
upon his own property to somebody or
anybody else at par or by cashing his
own notes.
Mr. Whitwell-I think not.
Mr. Goldsborough-A man who owned
one-tenth of the stock got certificates for
S260OO0, but his stock was practically
mortgaged for that amount. was 1t not,
30 that he was not substantially any Del
ter off than before, was he?
Mr.. Wn.tweii-No, sir. de Simply had
an evidence of the appreciation OF his
Investment, and that's about all there
was to 1t.
In answer to Mr.. Rothermel, Mr.. Whit
well explained the theory OF depreciation.
which justified charging off a certain
amount annually to cover losses occur
ring in that way by wear and tear. etc.
ed very conservative basis for meeting
that requirement of the interstate COM
rmerce commission.
The chairman announced that the hear
ing was concluded. and invited Mr..
GoldSborOugh to begin his argument.
Mr.. Goldsborough:
mir. Chairman and Gentlemen of the Com
mttee:
With your kind indulgence, before TAX
ing up the legal points of the case, l VIII
briefly review certain concurrent matters
that seem to me to be more or less IN
separately related TO it. Not that II Is
essential or even pertinent from a iegai
point of view to consider things that are,
80 to speak, extraneous to the issue, but
because it goes without saying that the
whole subject should be reviewed, when
constitutional rights, sacred to all. are
to be denied to any. There is no other
way than this of safeguarding the judicial
mind from poisons that are dropped-as
symboli2ed in Hamlet-into ears asleep
to the dangers of OBSERVATION-DISCLOSURES
to the play OF the passions, equally 1atal,
whether honestly aroused In the public
interest or unconsciously excited by pure
~ personal, or professional, or pohtlcai
views and considerations. Man is mill
tant animal at best, as We all know from
experience, and not given to close analysis
when in the heat OF blood. The truth Is,
the celebrated epigram OF the INDUSTRIOUS
Sherman Is equally applicable to war
wherever waged. There IS, however, some
thing involved in this case deeper than
parrisanship deeper than politics deeper
than personal pride OF opinion or preju-
dice, and that is this: In the light OF all
the great decisions, fairly shining for our
guidance, what should be the attitude OF
the legislative, the public and the judi
cial mind toward this sort of legislation?
Looking at the subject broadly, squareiy
and frankly. not overlooking or minimiz-
ing in the least the public equities-how
should We. in this dawn of the twentieth
century, treat our political Peter Pans.
who must indefinitely continue to be le-
gally regulated; these children of the law
public servants, forsooth, who can never
grow up: whose servitude units them for
mastery: whose parentage should pro-
tect them from slavery?
Is Ii not, from every point of view, eco
nomical, moral and legal to the true in
terests of the people to treat them not
only justly, but falrly-even generously
ias M. Justice Moody substantially puts
It? Or on the other hand, should you 60
TO the uttermost limits OF your power IL
power you have, to amend for any the
Golden Rule. that is or ought to be the
common shield of all?-the ever Golden
Rule not only as religiously defined in the
Book of Books, but as politically de-
fined In the Charter Of Char lers-the Con-
stitution of the United States.
Pledge of Loyalty of Companies.
want to say, Mr.. Chairman. in the
outset. that be this as ii may. be your at
ttude toward US what IL Will, the COM
panies / have the honor to represent will
always be, they always have been
your faithful and loyal subjects. / wan,
to say again that We do not now anC
never will question the integrity of youl
purpose toward US; that 1t is now anC
ever will be unthinkable to our minds tina
You or any of you would, IL you could. In
tentional!y degrade or destroy US, We d.
not profess, gentlemen OF the committee
to be either tnfallible or impeccable, mol
pretend to be above criticism or correc
tion. We have no special privileges Il
p.ead: and whereof We stand accused W,
are ready to be TIED: but. with all du'
respect to its distinguished author. W.
confidently do submit that we should no
be compelled to go to trial. in any case
that's what this bill is that charges no Of
Tense. What crimes have We committed
Mr. Chairman. to justify the drastic pun
ishment proposed to be inflicted upon us ii
and by this measure? How can We de
fend IL by any other plea than mo
guilty of the things whereof we hav
been charged outside of these cor. idors-
than by begging you to patiently lend Vi
your attention whilst I address myself +
facts that have elsewhere been put IL
controversy and to hear me with q judicia
mind that the truth may set US free.
Briefly summarized, then. gentlemen o.
the committee, the reasons, as we un
derstand them, assigned or to be assigned
by the advocates of the proposed meas
ure to justify its passages, are as fol
lows: