The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1910-05-13
GAS FACTS WORTH SERIOUS
CONSIDERATION.

/ light IN the last few weeks concerning
the affairs Of the Washington Gas
Monopoly, there Is every reason to be
Iieve the House District Committee viii
vote favoTably on the Godfrey resOlu-
ton, prohibiting the company increasing
its Indebtedness in the future without
specific consent of Congress. The commit
tee has agreed 10 vote on the resolution
/ Saturday forenoon. It is difficult 10
think 1t viii do otherwise than recon-
mend the passage OF the measure by
the House
In considering the resolution the mem
bers of the committee have been con
fronted by SIX propositions whose i'm
port can hardly be overlooked.
They forced themselves prominently 10
the fore IN the great array O. evidence
which the committee heard at its
numerous sessions, and must have made
decided impression on the committee
men These propositions, briefly. are
as follows:
That the underlying purpose Of the
resolution Is 70 help in the movement
toward lower gas rates in the District
Of Columbia
That increased Capitalization at this
time means increased interest or divi-
dends
That increased interest or dividends
means TO reduction IN the price OF gas
20 the consumer for a long time 20 come
That the company lodged its charter
I IN 1891 b. issuing $4,000 in certificates
OF Indebtedness, and again in 1893 by
issuing s2,6oaeee OF the same kind Of Sc
curities
That the COmpany-s profits have been
increasing so rapidly that i wants 20
issue more securities IN order 10 spread
1 capitalization and make them look
smaller
That II the company does not contem-
plate stock Jugglery that VIII be IN
resolution VIII not interfere with its
operations
The fact that the Gas Monopoly has
been a gold mine should be carefully con
sidersd when any effort is made 10 ar
rive at a fair decision on the Coudrey
resolution OF on the question Of CAPT
taIzatiOn, profits, I'D rs5es- For
tunately, we have the comPsny's Off
eiaI figures for the returns II has made
to stockholders IN the past twenty four
years-snd they are so stUPendOus as
TO be almost unbelievable. These fig
ures were furnished the House District
Committee BY Nh s. \. WhitwelI, as
sistant secretary Of the Washington Gas
Light Company, and we're contained IN
a written statement which he sub
mitted at the committee's request It
( Is a fOregone conclusion, therefore, that
the figures were very carefully pre-
pared
The reason the statement does not
20 back to the beginning Of things, IN
/ IS4s, can be understood when one real
ICES that IN 1894 the gas company de-
stroyed Its books and records, on the
theory that they were Of no use TO the
company then, and never would be.
In studying these figures it is well
to bear IN mind the gas peoples con
tentiOn that the value Of their physical
properties Is now sIOOOOOO0, which,
with their estimate OF 100000 for
franchise value, brings their total
valuation I'D to $4,000 600.
According 20 Mr.. WhitweI, the Gas
Monopoly has earned a total OF ST.
568-975-69 IN the last twenty-four years.
perhaps this explains why gas stock
with a par value of $50 a share. sells
at something more than $40 today
Incidentally, please observe that the
earnings of twenty-four years exceed
by 8 million and a half dollars the
total value Of the concerns physical
properties, a. reckoned at present by
the company
OF this sII,566, 1853, considerably
more than half was paid out to stock
holders as dividends; to be exact, this
sum totals s6,945,OOO for the twenty
four years. The difference between
these two sums Is S4,S2l 1859, and
this has been used TO pay interest on
bonds and certificates of Indebtedness
and for extension Of the system. Mr.
WhitweIPs statement shows that
| SI.948,792 was paid out as interest on
bonds and certificates. This. deducted
from the item OF S4.62I,975.69, leaves
( s.. 672 IS3. 69-the earnings which have
been turned hack into the plant OF are
now held as surplus
The House District Committee has
been giving thoughtful attention Il the
foregoing, and viii surely be slow TO
vote to permit the Gas Monopoly 10
engage In any new capitalization scheme
that is not sanctioned by Congress.
DEFEAT OF HUGHES PRIMARY