The Washington times., 1910-04-11
Former Representative Tells
Committee of Com
pany's History.
ARGUES AGAINST
STOCK INITIATION
Declares Congress Has Full
Power 70 Prevent Pro-
posed Plan.

recital Of the financial history OF the
Washington Gas Monopoly, from its
beginning in 1S4s down to date, that
has ever been made, was laid before
the House District Committee IN the
address OF George c HazeItOn-
It IS reproduced for the purpose OF
stating the entire case OF the con-
sumers, IN opposition to the Gas
MonOpoly's project for doubling its
capitalization
Mr.. HazeIton was six years 4 mem
Der Of Congress, and four years Cor
poration Counsel under the Harrison
Administration He IS peculiarly
qualified to speak with knowledge Of
the law and the financial history back
of the present imitation project of the
gas companies.
In addressing the committee, M
Hazelton directed attention to the
Coudrey resolution. which proposes TO
prohibit the gas companies adding to
their issues OF securities.
He said:
Congress Has Power.
The resolution, in the first place, IS
clearly within the power OF Congress.
II does not prohibit the gas company
doing what they might claim tOshave a
right to do, and II does not invade any
right It IS consistent with the rights
OF the consumer, and with legislation
up 70 the present time
The first day, when this resolution was
brought Up here there was some qUes-
ton about It's not containing a penalty;
that Il il should pass II would not be
operative TO any extent In erecting what
II purpoFts 10 effect and the two sec
tons OF the original charter were quoted
By some parties as being sufficient as
E~-~ - ~F~arr as
section 10, and the second was section
IL The gas company has never violated
section 10. and VIII never violate It. It
has nothing whatever 70 do with this
resolution II simply prohibits the cir
culation OF any bill. draft. check. or
der, or promissOTy note as currency.
IN 1913 this country was filed with
wildcat currency merchants and cor
poratiOns, and different parties issued
promises 20 pay. which circulated as
money We viii never return 70 such
conditions
No Forfeiture Question.
Now. the question Of forfeiture OF
charter IS not involved in this resOlu-
ton Section II says
That each Of the stockholders IN the
Washington GasliEht Company shall be
held liable in his OF her individual ca
pacity for all the debts and the IiabUi-
ties Of the said company. however con
trsctcd or Incurred to be recovered By
suit as other debts or liabilities before
the court or tribunal having iUrisdic-
ton OF the case
None Of these certificates OF Indebted
ness. none OF these securities that arc
prohibited by She resolution, come with
n that clause II this corporation
should become insOlVent or could not
could hold the stockholders for Tho
debts and that Is all there Is OF that
30 that IN this matter, in case the reso-
luton needed q penalty clause. I sug-
And any evidence Of Indebtedness
Issued BY said companies, OF either OF
men. Or lhe Character hereinbefore pro-
hioited. shall be null and void
That would necessarily put the world
upon notice that II the COMPANY Should
issue any OF these certificates Of In
deDtedness that are not within the
authority Of the statutes, and not within
the authority OF the law. they would nor
De likely 10 be received as negotiable
paper But II that is not sufficient ,,or,
can add still further the FOLLOWING
And each and every officer of or per-
son connected with, any Of said com
penles, who shall Be a party TO the fssu-
ance OF any such evidence OF indebted
ness, shall be guilty OF a felony and
upon conviction thereof punished hv a
fne Of not less than - dollars, or bv
imprisonment or BY both said fns and
imprisonment in the discretion ~ fbe
court having jurisdiction OF said Of
tense
That would complete the resolution so
as 70 give it Al the penalty thar would
be needed
Franchise Worth Much
In 1885 Congress gave one Of the best
franchises ever granted 10 a Company.
practical monopoly IN a great. grow
ing capital city. oNw, that charter ~
1S4s said on the question Of caoitalfza-
ton. that the exclusive reserve7 power
h In Congress And II the compauy
has undertaken TO exercise # and take
II away from Congress, that Is one Of
the reasons why this resolution should
pass
The Limit fixed in the charter was
$4,000. Tradition says that Of this
$4,000, $500 was actually paid IN, and
$500 given as a bonus In due time
Congress gave authority to Increase the
capitalization by $300.0o0 in 1s52. and By
1900 in 1s5E
No Record Kept.
OF the first half million there fz No
evidence left IN the Gas Companv's of-
fce in regard 20 Il, either Of the stock
holders, either Of the stock books. eitbe-
Of the amount paid in, by whom or
from where II came or anything else:
l"l q sclHtiia- hold in my hand the
SpoOner report, made In 1875, BY the Sem
ale Committee, Of which Mr.. SpooDer
nas the chairman.
How much Of the $4,000 Of capital
was paid by stockholders into tba
treasury OF the company I'D to 1855 IFS
officers are unable 70 advise the con-
mittee- A statement Of the amount pssi5
into the capital BY stockholders and
by whom paid and OF the amounts
earned by the company. and the dfsno-
sitiOn made OF such amounts I'D to 1SeS
the committee is unable 10 obtain. II
has been stated heretofore IN reports
10 Congress that the first $500 600 Of can't
tai was paid in cash. and this was
stated BY the present officers OF the
company al the outset Of the investigs-
ton to be true and Il may be true. but
upon eXamiua ttOn OF them il was de
VeiOped that their information IS based
upon inference and hearsay. The
Profsssed inability Of the company 20
furnish this information finds explana-
ton in q fact most extraordinary. and
almost unprecedented in the history OF
corporate management On the - day
Of 1883 the board OF directors OF this
company passed the following resolution
or order
-OrdS red, That the secretary be d.
Tected % destroy or dispose Of such
swift & Companvss sales Of fresh beef