The Washington times., 1910-05-03
Failure Will Mean Greater
Burden on Consumers,
He Declares.
CLOSES ARGUMENT
FOR RESOLUTION
Recalls Corporations Action Over
Former Increase in Capitalize
tion-Goldsborough Heard.

Declaring that the failure Of Con
gress to exercise its right TO regu-
late the manner in which the Wash
ington GasIiasht Company shall de-
clare its dividends and issue certif-
Gates Of Indebtedness ultimately will
result in additional burdens on the
consumer, George c. Hazleton, a for
mer member Of Congress, appeared
before the House District Committee
last night 10 make the closing argu-
ment in support Of the resolution in
troduced BY Representative COudrey.
OF Missouri.
companies in Washington issuing
bonds and certificates Of Indebtedness
without permission Of Congress.
Nj Hazelton pointed out that under
the terms OF the charter granted the
Washington GasliEht Company BY Con-
sress, that body reserved The right 10
alter, repeal, or amend, and because Of
that reservation the stock capitalization
rests solely in the hands Of Congress
He insisted that the company cannot
legally issue any kind Of dividend ex-
cept cash dividend and cannot in any
manner issue certificates OF indebted
ness. because no such power Is given in
the charter under which the company is
operating
Past Experience.
Mr.. Hazeltou called attention 20 the
fact that III 1876 the company divided
among its stockholders $4,000 Of the
increased capitalization authorized by
Congress without receiving a cent there
for II is 10 prevent such financing In
he future and 10 put an end 70 the
system OF Issuing certificates as q bonus
&c the stockholders that makes neces-
luton AIr- Hazelton asserted
Attention also va. ds-esteu 5v afr-
Hazelton TO the issue Of S2.6l8.105 OF
stock in the same year that a cash div-i-
dend Of 10 per cent was declared The
stock issue he said. was TO the exact
amount OF the capital stock This
stock goes On accommodating Sl56.l55 a year
IN interest
How long" asked Nj Hazelto7.
would railroad continue in operation
BY adopting that system without in
creasing Its freight and passenger rates,
or else 20 into bankruptcy. In the case
OF the Washington Gas Light Company
that system sends up and Keeps Up the
price OF gas This system makes EeCes-
sary IuTtner supervision OF the company I
by Congress
Mr.. Hazelton told the committee II 7
vas high time 20 STOP the attempt OF
the Gas Company 20 forestall something 4
that Congress had a right 10 DO and he
cited many decisions OF the supreme
Court 70 Tefure the argument Of Atlor- .
ney Gol0sbOroUEh- counsel for the Gas
company 10 the effect that the COudfey /.
resolution If enacted into law would be /
declared unconstitutional.
"a Plain Case"
What IS the use o. arguing a case I
which must be perfecs " plain TO every 4
meuber OF this comm ttee2" asked Mr.
HazeltOn, suddenly Bringing his arZu-
ment 70 q close Pass this resolution
and put a stop 10 this system which is
oppressive 70 the Eas consumers Of
" washington Remember that S15ll0o z
year IS eating right out Of the cousuu1-
eIs- II hts thing continues il Will
either raise the price OF gas or send rHe
company down TO Insolvency"
me clOSlng argument for the gas COM
pdly was made by Attorney CzoIdSbo~-
1Ugn- he declared that the Coudrev
-SsO4uLOn was picking out one of a
lass OF public service corporations and /
mar therefore IL resolved itself into
class legislation
No state can undertake 10 do that
- " LHlng, said Mr. COldsborougb
0y private or special statutes nor -Ca-
congress do so b. private 5rr ae.-[s-
,laliy enacted 10 affect private cbar+e7-s
= = s-SLlouL cue regard and respect 10 rhe
--S--l OF review reserved in and nv fHa ,
III C-L tSGnln Amendment which is II sz
~ Iorce and vigOr ard effective fr-7s[y
ls Il was n ISL '-''
Hazleton's Argument.
NJ Hazelton spoke as fo71ovrs-
M Chairman and gentlemen. II can
lOJ ne expected in all reason thar 7 an, :
. review the entire argument made :