The Washington times., 1910-05-22
THE DUTY OF THE SENATE
DISTRICT COMMITTEE.

- II the Senate District Committee will
read carefully the published reports
OF the gas hearings before the House
District Committee it will find a reli-
able guide 10 its action on the Borland-
Cary bill and the Coudrey resolution,
which have been reported for passage
x TO the House and which are expected
e 70 pass the lower body with little or
no opposition. If the Senate District
a. Committee reaches the same rational
c1 conclusions reached by its sister com
80 mittee of the House, there will be no
question as to what disposition it will
make of the two measures under con
sideration. 1t will report them to the
Senate for passage.
The evidence obtained by the House
committee concerning Washington gas
ls,affairs was of such character that the
committee voted unanimously in favor
xaOf reducing the price of gas to 50 cents
9 and prohibiting the gas company in
ereasing its capitalization without ex-
press authority of Congress. 1t is
ftdifticult to see how the Senate District
SfCommittee can do less if it Is honestly
open to conviction as to what is need
= ed 3y Washington gas users. The Sen
ate District Committee viii find that
Erthe gas hearings produced the follow
: ing valuable information:
3 That the gas companies have built
up practically their whole system by
the use-of surplus from money collect
ed from consumers Of gas
; That very little outside money has
ever been invested in the properties.
That values thus created have been
: capitalized and that dividends and in
terest have been paid upon them.
That profits have been such as to
make gas stock have a par value of
= $40 a share stand on the market at
Z from so to s72, its price today.
8 That profits have accumulated so
rapidly that on TWO occasions the gas
monopoly has violated It's charter by
issuing certificates of indebtedness
: bearing per cent interest.
That the last issue of this character
amounted 10 s2,6OO,OOO, and has drawn
{ interest at per cent for 7 years.
That the gas monopoly now asks
Z authority TO legalize these certificates
e by converting them into bonds, there
by making them in reality 100 per
: cent cash dividend to stockholders 10
: Yhom they were issued in 1903.
l.. -
to issue S3,9OO.GOO more stock as
bonus to its stockholders, and to pay
6 per cent dividends on a total capital
stock of SG,5OO.OOO, instead of on
S2,6OOOOO, its present capital.
That this would make the capitaliza-
ton stand as follows: Capital stock,
s6,5OOOOO; bonds, s3,2OO,OOO; total,
S9,7OOOO0.
That the interest and dividend
charges for this would amount to $780,
600 per annum.
That the proposed capitalization
scheme would reiuce the rate of divi- |
dend and thereby make profits appear
smaller.
That instead of permitting the gas
monopoly to take as great profits as
1t takes now or instead of permitting |
it to take even greater profits, it is |
possible to permit it to take fSir
profit only and TO dispose of surplus
profits by reducing the price of gas
to consumers.
That the Coudrey resolution Is nee |
essary because of evil stock juggling
Npractices by the gas monopoly in the
spast.
That the Borland-Cary bill is neces-
sary because the evidence shows the
gas monopoly can sell gas at so cents
and still make all the profit it is en-
titled TO make.
If these reasons are not sufficient
the Senate District Committee can find
a few more by perusing the annual re-
ports of the gas monopoly for the last
twenty years and by studying the ar
guments made by Attorney Richard II.
Goldsborough and Expert Engineer Al
exander c. Humphreys before the
House District Committee this spring.
SENATOR HALE ON THIS