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


Interest bonds per 100000
Total 100000
In 1909 the gas company paid per cent $4,000 its
stock because profits had been aocmung until the surplus contained
than 100000 percentage Of divi-
dends and thereby make profits look smaller that such anxiety for
greater amount Of capital stock Prior to 1909 the company had paid
10 per cent dividends on its stock for several years
Having disposed of the question of capitalization the committee
took up the question Of Of charge and stock dividends and the
result OF its cOgaonS present the company with another
magnificent chance oft the expense people The
dend rate fixed per and the price gas cents with the
provonon the ace;ha every time the company its
dividend per viii have lower the price gas cents
nverse if lowers the price of gas cents is at liberty to lift its
dividend rate per cent.
This system seems to flow as smoothly and as beautifully as
buhbng examines closely when he finds that
through Joker the company may
take per cent before the price Of takes its first nickel drop from
IS to so cents.
the place committee very kindly provision
the company to lay o. profits annual equal
per its capital or S65OOO invested
securities This to continue until the reserve" fund.-
called shall equal oneweneth Of the oomPanys capital
et S325OOO it easy that this laying by $4,000 annually
viii continue five years.
The Dill then provides that after the company paid per
capital sokand per put aside
per cent IN reserve making cent to be taken OF the profits
every year least five years before begin
knocking the price ga-ten earnings are sufficient
pay another per dividend making the per
cent the company shall red the price Of gas cents the FOLLOW
INC YEAR.
This means that the Dill passed as stands there VIII be no year
within the next five when viii bSS than
unless the PVof of the sufficient pay the following
amounts:
Dividend on s65ooeOo stock at per s30oo0ooo
Interest $4,000 bonds at per 100000
per capital stock 100000
Additional Per cent dividend to compel reduction to
sumner 100000
Total 100000
This total IS just per cent proposed capital Of s65OooOo
plus per on the proposed bond issue of $4,000
words this bill proposes allow the gas company greater
profits in actual dollars cents enjoys today
question regulation capitalization and rates has been brought
of the widespread belief that profits have been great
charges high the past On the basis of
ddend-wicn the has paid Of the time
its disbursements Of profits are $4,000 year The House District
Committee would increase these disbursements by s24oO6O nearly
quarter mion If the House of Representatives the
any such scheme Of high finance Washington may we'll be
pected to blow up with Indignation
word about that reserve fund The bill provides that
shall be kept onetwenteh of the capital company
specifies purposes shall be used These purposes
bd as any extraordinary claim, demand charge that may any
against fall upon said company from fire. accident other
circumstance which due care management could prevented
Perhaps Joker by which the company viii be able 10 draw
on this fund for extensions and beements may safely as
sumo that viii be used rapidly accumulated thereby per-
hitting company charge of S6O year to this
forever and incidentally plant and future
date trot up Congress and ask permission to issue capital against it.
If be used only in dire emergency viii still help
the company years waTdng of reduction the price Ogas
The contains provision that would prevent the company
investing any surplus might cents
in any one year fact wording the reduction section such
that the company reduce the price than cents time
If # had anything could put into extensions and better
euts subsequently claim the right capitalize and pay dividends
on the stock or bonds represented by just asking authority
to make bonds of 100000 certificates of Indebtedness
When the gas reported the House from committee
Wednesday should picked up gngey with pair of longs carried
carefully window and heaved into It's loaded to the guards
hardly Rssu Democrats and insurgents
understand how the trades seem uo etneT 10 claim