The Washington times., 1910-03-12
Such Is Opinion of Wiscon-
sin Representative Stated
TO Committee.
REPORT FAVORABLE
ON INVESTIGATION
Statements of Enormous Profits
Promised, Cause Of Approval
Of Inquiry.

That the Washington Gas Light Com
pany IS now secretly engaged in cut
uns its fve-milliOn-doiiar stock melon.
through certain banks Of Washington.
IS the belief OF Representative Cary Of
Wisconsin, as expressed by him before
the subcommittee on corporations of
the House District Committee today
According TO Representative Cary h-
las proof Of IL and is going 10 produce
10 before the fuu committee.
Mr.. Cary gave some information as
20 the nature of the proof. He said h=
knew the name OF a clerk 20 PROM
uent member OF Congress, who aiu
testify before the committee 20 the el-
feet tnat he was approached Jy a Jau0
official and offered some gas stock.
which he was told would more tLal
double IN value i'm thirty days, OF hi-
money would be refunded
Mr. Cary asserted that the names Of
other persons who have be-- similarly
by the hank can oe divuIgeI
by this clerk. II ne decided 10 give tls
Information 20 the committee
Favorable Report Ordered
As q result Of the information given
the subcommittee by Representalive
Cary, a decision was reached uuanl-
m0usly 10 report favorably Representa-
tive Coudrey s. resolution prohibiting the
Washington GasIigut company. the
Georgetown GaSIguL tOnpa ny, VI any
otneT ga IghL company ln G- DIsl-lrL
from ISSUING any bonds or ccruucaivs
OF Indebtedness, except SI-A as shalt
be required Tor tle making OF improve
ments.
in view OF Tie y1a-t- measures nos
pending Iu Congress, relative 10 the ga
sltUdtIOn. lJ IS bclIeVet according .1
Lu- statements mace bE .Ecp - cIlt--tl --
cary, tt-at tle Gas COMPS Iy noS o--
c4ucI % cut IJS fEc-LIsl. 1l-dUIlar mel1il
within the next thirty DAYS before iu-l-
taE b. any interference DE Cunsr-=S-
Eepr-seut1tIye Cary promises 20 Il-
vulEe before the whole committee ou--
Of Jle. most remarkable stories cf local
financial deals ever ncard ay q Lrhsfe@-
sIunal committee
Enormous Profits Discussed
TIE witness. ne asserts. VIII TELL il1
committee that he VAS asked by . bank
official 10 put up SO as margin FOR sOll-
Gas stock. The amount OF which he did
not know He was told. however. that
the stock would double end perhaps
treble itself ia thirty days, OF else his
money would De refunded
lie Vas gwen TO understand that l-
could expect 10 ICalIZe from Sl..u1 -u
$3.50 on the SO investment In a month s.
tire.
Why Go you make this proposition 10
me-" TIE witness iS said 10 nave asked
the bans uucieI-
Because you are known from me
head of the company down or you would
nOt Sci tne chance, is the reply saIu
90 have been made.
According 10 this witness a friend
rushed Up 90 him last night and aSkeu
20 10 loaned S-"- Ills suspicion Was
aroused
..Hss any bank been after youe~ He
asked.
Preparing To Invest
The friend admitted that such Was
the case, and that he was preparing 10
invest in some Sas stock
Il Is he belief % the witness that the
company has selected certain banks
which 70 can trust, and upon which 20
VIII reply Go dispose of the stock upon
which the S5.G31,uo can be paid out
The theory upon which he bases TINS
belief - that the Ea~ company has CJ-
Cided 10 cut the melon. but that IL II
afraid 10 90 SO on the basis of the eN-
iStiHE stock. as 10, doubtless. would be
unable 10 control the speculation wRlcn
would follow.
The general impression is that the de-
cision 20 cut the melon at all hazar.!7
was determined upon after February
Is, when Representative COIlrey. $ On.
was introduced. Something had 90 be
done. and done in q hurry.
The banks We're resorted 90, according
10 Representative Csry's witness. be
know the dCpusiJors who would be GLAD
10 get hold or a. E1ol thing ard know
now 10 keep quiet about It.
Must Bear 20. K" Brand.
Not a man viii be offered any or he
stock. according TO what the bank Of
hcial referred 10 told the witness. who's
record has not bee2 examined and Wh.
is not believed 10 be all riSs,,
The first bnowleds.e gwen The public
that the company was preparing 10 0u'
this melon appeared iE the columns of
the Washington Times q few week
sco- The sudden publicity apparently
caused the company TO suspend its plan
Then came Representative CCUdrey-' s
resolution which, n enacted into ls =
VII prevent tltr melon from ever DeiHs
cut, ina smUCh as d. directs tnat nt
bonds or ccTtihcsScs Of Indebtedness
can be issued except where the money
IS 10 be used in improvements.
morning Representative COudrey'S reso-
luton was tSSSen up for the hrsN time
I Representative CaTs's statement mad.
al the outset resulted in the resolution
being favors bly, reported within less
than fnye minutes after II was read.
Cary Offers Proof.
i am told by a clerk to a Representa-
tive. that he was approached BY a baUt
official who wanted to sell him some ga,
stock He was told ne could more thai
double the value Of 10 within thirty
days. I believe this is the movement O.
the part of the company through th-
banks 10 dish out its I'VE million dollars
I have the name Of this witness. and
can produce him before the full commit
tee when the resolution Is brought ur
there. said Representative cary.
The members Of the subcommittee an
reared startled at ReDreSpntsffr
Z