The Washington times., 1910-04-09

no part Of the stock should be issued TO
represent undivided profits already &C
lutte violation Of that condition and the
million Of stock issued under that act
was not representative OF capital paid
IN. but again represented a mere fiction
FOR the distribution Of surplus"
BonUs FOR Stockholders
That brought the stock Up 10 s2.o00,-
DC. The next increase was caused. not
BY authority OF Congress, but the COM
pany issued $4,000 OF certificates Of in
among The stockholders. Afterward.
Congress was asked to condone the Of
tense ar d permit the company TO con-
vert these certificates into stock, which
was allowed BY the act Of 1895
The next move was in 1902. when II
sought 10 increase It's shares Of 50 face
value TO 500 face value, on the ground
that the Georgetown company was 70
be bought and consolidated with the
Washington. That would have increased
the stock TO over SlSO00sGJa- Congress
voted that down
In The June following, the company
Notwithstanding this action OF congress.
issued S2,600,u00, termed dividend Ceru-
dca1es-" These were ultra wires, with
out consideration, and merely q bonus 70
every stOckhOldeT. Of an amount equal
20 the stock re held.
The company had no right 70 declare
q divided unless payable in money, from
the profits Under its charter, congress
reserved fun and exclusive power to con-
troll stock issues The company can pass
q dividend, OF allow its cash TO acCumu-
late but IN no way can IL legally issue
stock dividend or a certificate Of in
debtneSS without consent of congress
Il cannot create a debt in q certificate
or otherwise, unless Il be for material
furnished or labor done, OF 10 paw inter
est on a bona fde indebtness.
Control Still With Congress.
NOV, except in 1895 Congress has
never surrendered control over the stock
issue. Al that time II surrendered that
control to the courts Of the District, on
the terms Of section 3 Of the Act of 1896
But that law was not evoked save once.
within the last two years; and while
the proceeding was pending to increase
the cap z liZariOn under il. Congress re-
pealed the aTJ and left the Judge sitting
on the DenCH and the lawyers TO leave
the court at their plasure- With that
act Congress resumed the absolute and
exclusive control OF this question within
itself as II had been from the beginning
There can be no purpose on the part
o. the company 10 oppose this reSolu-
tIonr unless II IS to repeat in some form
the overt, unlawful acts that have char
scterized its history in the past II is
common understanding in the CITY. in
every center Of financial interest, that
the scheme IS II this resolution can be
defeated, 10 project another OF these
unlawful and unjust issues OF securities
bonds. or cerJIficateS. and divide them
among the stockholders once more. in
order TO increase the "a pitalizatio and
70 bring the company within the princi-
PIE OF the right TO earn returns. and pre-
vent reduction Of the prize OF gas
Ar HaZeltOu urged the committee.
hrst. TO pass the resolution as an eStOp-
pei TO the repetition OF past Ofeuses
against Congress and the consumer.
ana then 10 turn the SeaTChliEht Of in
vestiSstion on the company, learn how
much money II has how much surplus
on hand in cash and securities. how
much 10 Is actually earning and paving
in short, TO see Just how the com
pany stands, and then follow out the
rule Of the Supreme Court. hE which
the value of the property should be de
teYmlned, and the income DTOpOTriOned
10 that value. and the price Of gas
fixed in accordance herewith