The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1910-05-15

Although possessed of trustworthy information whatever con-
Corning conoverse actual value of the
properties the House District Committee has voted favoraby
to fix the capitalization Of the Washington Light Company and to
regulate the rates of charge which the monopoly may collect from con
The committee upon foundation of sand piece of
proposed legislation which, if it becomes law stroke sweep
away right people Columbia to decent treat
the hands of the gas company mercy
that grg corporation for many many not only increases
the capitalization of the company, authorizes
already huge pro-and gives community mighty little in the
direction cheaper gas
ton Of economies and its operation would make the enormous
advantage of gas monopoly against people If
had been written by the attorney for the gas company himself could
hardly have been made to provide for the corporation and less
the patron
The manner which the estimate the value Of the properties
was arrived at IS the most ngly remarkable feature Of this remark
document Remember that House COM
nothing about the value of the system gas
companys paid expert engineer imported from Buffalo, told them He
said the properties worth 100000, exclusive of franchises and
good viii
THEY HAVE ACCEPTED THESE FIGURES AS CORRECT!
The bill which they have given their approval provides that the
company may issue securities up to $4,000!
provision the whole should
be sufficient to kill the bill if gets
House committee moral right Congress
right saddle gas Washington dividend
interest charges this huge block Of stock and bonds without first
finding beyond question whether the gas company the actual
physical property behind such securities upon which value entitled
take profits
OF 100000
Dr. Alexander c. Humphreys of Buffalo,
which Congress should quest
information this vital problem?
But the House District Committee forty Itself its
estimate gas property vaueS-and defense ridiculous than
It's conclusion It has inserted in its bill the provision that the capital
stock shall not exceed BY captang
taxes paid by gas company 1909 under require
rnents Of the act of June, 1902.
Now 50 happens that June 1902 provides for two
kinds straight u per twods
the corporation and per
gross receipts gross receipts recognized from
end Of The country the other tax the privilege Of doing
business in the community franchise tax
In the case the gas company 1902 gross receipts
amounted sio6Oi599 and the real estate s25O8796 The
committee proposes that this total Of sf3tio395 be capitalized
purpose of arriving the total value of the physical properties
irrespective of franchise values Good sound economics that
This capitalized produces figure Of about the proper
tons declared by Dr. Humphreys be the real value
physical properties There other why the committee should
accept basis making valuation because large part the
total taxes Concern which even
this BILL is in other respects does not directly attempt cap
italzs
After making this peculiar provision for limiting the amount of
capital the committee then incorporated the bill specific
provision should the s65OoOo0 is safe
to assume company up maximum 50 in
considering the bill should place the capital OF the corporation
figure The capital S S26OQOOO
The next provision the mchdsSsed certificates Of in
debtedness 1t viii be remembered that these were issued to ockbo
the of 100000 back in 1908 stock dividend that
they per interest Their legality has always ques
toned bill favored by the House District Committee
egalZeS the questionable action Of the issuing
these certificates by providing that they may be bonds
paving per Additional bonds 100000 bearing the
same authorized provide taking up the s5985oO
bonds Outstanding and paying per cent
This makes the authorized bonded indebtedness of the corporation
s32OOOOO and with the stock brings the authorized
securities up s97O0OOO-a strictly legal and paying annually div
dends and interest of S550oOO which viii of the pockets
people of the District of Columbia and into the pockets
people hold gas stock gas bonds gas certificates indebted
And should not be forgotten elaborate financial scheme is
upon the asmpdonand only the aSsmpion-that