The Washington times., 1910-03-31
GAS EARNINGS VAST.
ASSERT WITNESSES
At HOUSE HEARING
Citizens Give Interesting
Figures to Investigating
Committee.
RESIDENTS RELATE
INDIVIDUAL CASES
Dr.. Cuthbertson Says Company
Charged Him Sos to In
stall Fixtures.

Lawyers, officers OF citizens associa-
tons. and persons acting IN merely pri-
vaJe capacities. filled the room Of the
House Committee on District Of Column
bit this morning when the hearing was
opened on the Coudrey Joint resolution
10 prohibit the washington Gas Light
Company issuing bonds.
The hearing was not nearly completed
when the hour Of noon struck, and the
merits Of the resolution had barely been
upon. The most important development
OF the hearing was the admission by
Richard II. GOldsborough, counsel for
the gas company that il has in mind
the purpose 20 refund some of the OBJ
legations OF the company To this end
he said, the company sought 10 secure
the consent OF the people holdinc the
present issues OF bonds and certificates
Of Indebtedness, and also OF she stock
holders.
Resolution Favored
Mr.. Goldsborough did not indicate the
extent Of the bond issue which the com
pany desires 10 make. He was prepar-
ed 20 speak in opposition TO the Coudrey
resolution, while George c. Hazelton,
as attorney for The Times in the mat
ter, and representative Of the public and
consumers interests, was ready to
speak IN favor of the resolution
Mr.. Goldsborough'S interesting admis-
sion Of the company plans was drawn
forth early In the session, when a mem
her of the committee demanded 70 know
the purpose of the resolution. and
whether the company was contemplat-
ing issue of bonds.
The session today was devoted, in
greater part, 10 airing grievances
against the gas companies These were
OF the sort perfectly familiar TO the
people OF Washington. and related 70
the unwilingness Of the company 10
provide facilities. TO the alleged UNJUST
methods employed by it, and the like.
Inc arst speaker was Edwin H Tuck
er, president Of the Northeast Citizens
Association. He said he believed the
Coudrey resolution was Inadequate be
cause the Old law, in his opinion. would
prevent such issues II only II were en-
forced But he pointed out that the
OLD law has been fiagrantIy violated and
he argued that there is no reas son 10
doubt II viii be violated again when the
company desires
Mr.. Tucker reCoUnted the facts about
the present issues OF STOCK and bonds
by the company, and insisted that the
company. now contemplating further is
sues, Is already OVercapital lfzed The
outstanding certificates Of Indebtedness
ne SAID, are gross violation Of the
law. WITH gas stock selling al so a
snare ana worth, on its face, only go.
MT. Tucker calculated that the stock
is now worth $4,000. 10 which must he
ADDED the certificates and bonds. max
ing a total capitalization Of 81 so G00.
And yet, said Mr.. Tucker though
they are earning liberal returns on This
huge capitalization. they are asking
leave 70 issue more. These certier9+ae
are gross violation of the charter
which foTbids such an issue Vet ~.
operation or their issuance is liable 10
be repeated tomorrow The con7rs1
literally has so much money that II
doesn't know what to do with 10. The
ceruhcateS now In existence We re r-iy-e0
10 the stockholders without a do1Isr ~
consideration. ds a means to distribute
ing surplus; and the privilege Of issuing
such present 10 the stockholders from
time TO time Is Of such value that I
Wouldnt be surprised. if Congress
should attempt to buy this property. to
see 1t compelled to pay $50. 900 900 for it
Tells of Earnings.
Mr.. Tucker said the cOmpanv Maid
Sl5S.oO0 interest last year on these AL
legged illegal certificates. and after nav
ing the regular 10 per cent dividend on
the stock, paid a special dividend Of 10
per cent more, amounting to s96o. .Go1
The amounts paid on the certificates
and on the extra dividend If annIiad 10
reduction Of the cost Of gas. would have
cul on II cents from the price: and the
company would still have been earning
capital '9
Mr.. Tucker favored the Massachusetts
ElldlnE scale law 10 govern gas ,,ricae
and the dividends Of the company. He
(Continued n, S{xtb p,-