The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1910-07-13
Gas COmpany's Melon Party Program Out
at Last.

The Sphinx has spoken The mum oyster has Oped its tight
locked jaws and revealed the pearls that snugly within
silence broken Washington GAS Lid off the holder
At last after months of secret maneuver the power behind the
light monopoly has out into the open Invitations melon
party have been issued and the for the feast has been
nOunced
The personal organ Of the Washington Gas Light Company today
made public the capitalization dividend plans which have been
cooking winter when procsss-as ruday
Tpte5 blythe action of The Washington District
Committee in drawing the fires from beneath The kettle Stirred mixed
favored seasoned and done they declared by the
Gas Monopoly newspaper 10 be as follows
FTT1e the company SHAH
Which shan he -ze5 ezTfyev f9- Fe++eI n bones the proceeds OF
s=coa5T the Outstanding 10000 PER- cent certificates Of Indebted
P 9P By s B 5 os ns st s ss be re
TTi5-Tat dividends shan hereafter be declared upon T valuation Of
@ ay 5 sal and not as hsTeto on the face value Of the
natelv Der cent non is sf5 l - ~ 4on o. IMAM 1IPTo5
business convenience Of the public
ThS makes the following highly interesting expana-
ton Of the above:
TaEns the property be
Dany legally entitled under the rule laid down by the Supreme Court in
distributions oft profits computed
This fair valuation" of the Copanys properties mind,
fixed by expert engineer the employ company
was brought to this city by the gas officials and paid big Of
money tor ms He the COmpanS He represented
nobody but the C0mpanyand his valuation of Sl3OOOOOO in
cudes 100000 franchise value and good as
going concern figures for value of the actual properties used
IL the conduct of the business something than 100000
Is this "fr37 Yet observe the nonlalance with which reference
made the ~fair. valuation" of the plant
Observe You please, the navete with which the third proposal
IS outlined No dividends viii be declared Nay, any.
Perish the thought In the future we'll simply pay per
SI5CO0DOO.
What does this mean?
The company been paying dividends Per Co.,
OOC and Per certificates Indebtedness 100000
Per bonds Of $4,000 total of $4,000 In years
when paid dividend of per lis s26OOOOO
stocl-tEis total has up to 100000
But of this Hereafter the company viii pay per
on S3CCOOOO In the future the company viii set aside only $4,000
every year instead Of sometimes $4,000 and occasionally S7OOO0O
Isn't that simple S0luton3 Isn't remarkable that during all
the discussion of gas problems for the last two three years. nobody
thought Of such easy rendy Why, its simple almost
explains itself We don't know whose fertile brain conceived the pan
n1ent in this progressive age,
That second proposal worth consideration, Here the
pany absolutely valid 100000 certificates
Indebtedness validity always These,
viii he remembered outright gifts to stockholders They
created of the ambient atmosphere and presented to the faithful
free of charge Not penny went into the treasury the
property the company these certificates but they
be turned inareseang bonds that will eventually be
redeemed for cash
The process idenay the that would be followed by
who would put mortgage his home nothing from
party whom the mortgage given and then round and pay
the mortgage of at its face value
When the Gas Monopoly converts its certificates of Indebtedness
into bonds VIII be doing exactly what the CoudTey resolution pro-
hbi taking very which the COudy resolution
intended prevent be beating this resolution
acknowledgement company give
Rress another chance to block its plans capitalization juggery
The first proposal for financial reorganization wise and sound
How managed creep into set Of plans that otherwise ca
d put huge money into the pockets Of officers and stock
holders at the expense Of IS naxPcabe As far as it goes