The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1910-04-14
GAS COMPANY OFFICIALS CONTINUE TESTIMONY BEFORE

AIR Coudrey-Mr- Chairman. have re-
ceived a letter which may interest the
committee The secretary viii read II
The secretary read a letter complain
lnS or nigh pressure. and charging II
TO be the cause of large bills.
M R0thermcl-What year was that
when so dividend was paid2
Mr Goidseorough-We were speaking
Of last year.
Nh RothermeI-Yes: the year in which
this reduction was made
Mr- GOldsbOrOugh-THat money was
taken IRON the surplus. $1,000 Of it.
Mr. Cary-One more question and then
I viii permit the gentleman to go ]
have ASKED this question three OF four
time, fut / VIII ask il again What in
lereSI mas Mr. John r Mclean IN the
RoSstyn GaSliSht Company, or what in
JeTeSI mas the ROsslyI Gasiighr Com
paIy IN the Washington Gas Company
Mr. lTOitSDOrOugh-The ROsSIyn Gas
Company Has nc interest in the Wash
ingtOh Gas Company / am one OF the
directors OF the latter, and il could not
have any such relationship without my
beng a party 70 il. so far as Mr. Nc
Lear interest IS concerned, I do not
believe he has any very considerable in
teresit IN the ROsslyn Gas Company he
- largely interested in the railroad over
there. and 50 am j. for that matter
ne Oh Dominion and Great Fails rail-
road Consequently we want TO build
up Rosslyn as fast as possible. and are
ready 20 contribute TO the encourage
ment of the building Of houses there
Nj Cary-If the Washington Gas
Company were making such enormous
dividends that they did not care 70
admit, n other words. TO publish TO
the pEUlic. what would prevent them
from having a franchise IN Ross IN.
Va and 20 capitalize the company IN
Rosslyn, Va say At S5,gA0,OOO, and
CoHSos5oc.e all the companies In the
Distinct Of Columbia with the Rosslyn
Gas Company, especially II the agita-
ton IS successful th>t the Post IS
n
come back into the District All
would come back with il. would 1t
not2
Other Gas Companies.
Mr. GoIdsborough-I will answer that
in this way There are other gas
companies around W Washington There
is one at HyattsvilIe. and one At
Chevy Chase, and II would not be al
all necessary. il the gas company
wanted 10 get under that kind OF
cover. TO employ the ROsslyn COM
Dany- Il could go and buy a charter
in west Virginia, as the electric light
company originally did and there is
no law that could he invoked TO de-
prjve the stockholders OF the company
Of the right 20 sell their stock 10 any
body outside For instance, IN 1898 q
New York syndicate ca ne down here
and bought fourteen or fifteen OF our
leading public utilities They bought
he METROPOLITAN Railway and thew
bought the Georgetown and TenuaIly-
town, and the AnaCOstia. and Bright
wood. and so on-anv mum Der OF them
They also bought the electric light
CCmpanV- and tried 20 buy the Sas
Company They have the right e.
attempt 70 buy the gas company, now.
and the stoCEnoi derS d the gas COM
1any have the right TO sell their stock
TO that syndicate If they desired The
offered them 500 q share for IL then
and tuHt was twelve years aSc, and
the business or the gas company has
more JLau doubled since then The
stockholders refused but they could
have accepted that offer. This suE
Eests one OF my objections TO this
resolution The stockholders owning
70 sell. but 20 lease II 81 they wanted
&c TO any body. Whoever took IL would
have 90 take u subject 10 the obiiga-
tlGns imposed by the law IN force n
the District OF Columbia and subject
20 the limitations Of its charter. and
all that sort OF thing. There is M
/ know o. BY which you can take
away a mans property. and condemn
IL without due process OF law. -,
man il entitled &C. his day IN court
Mr. C1TE-But YOU can prevent its
increasing its stock in the District Of
Columbia
a Different Matter.
matter You cannot prevent any one,
however from lncreas- nE his capital
You can prevent a company from issu-
ing stock against ct. but you cannot
prevent IT,. when il is ne cssary to do
so, from putting more money into It's
business. Suppose one OF these plants
were TO burn down tomorrow. C0ulI
the Government or any body else come
forward and say. You shall not re-
build that plant; you shall not put more
money in it, OF say TO the president,
You shall not 80 10 the banks and
borrow money! Suppose 2 fire should
break 0ut-that happened only two or
three years ago Coud IL be said that
the cCuDauv would ret have the power
20 go and borrow u,-ney and capitalize
that plant again Why. certainly not.
Mt Cary-Iiorrow the money, but not
issue sT0CEZ
Nh G0IdsborouEh-No. But il would
have q right 20 have returns upon that
money. Do not forget that, for that's
our case II would be thus capitalized
IN fact and IN law just IS absolutely as
though YOU issued stock against IL That
IS the reason y by We are here claiming
that The real thing 10 be considered now
S5-fa0,0ue OF value in IT, il is entitled TO
make earnings on 10000. A COMPANY
centralized with SI0G,00o0oJ. but with
$500" Only OF property, could not
cause Congress authorized it 10 issue
Nfo-"F.r5'- Il can only claim a right to
reasonable return upon the value or
~ hat d employs for the convenience and
use or tire public Il serves
Mr. Cary-That Is all we are asking
for in this committee
A1r- GoldSbOrOuEh-T hone 10 satisfy
the committee that that is ali We want
The ChairTnan-The l.ext witness. TI,e
gentleman VIII please give his name and
business &c the StenOET6 pher.
I want 20 ask YOU. before YOU start do
YOU desire 10 he interrupted now or do
YOU prefer that members should wait
until YOU set through your Statements
SIN FEMLNT OF Mr. s n WHIT,
WE'LL. ASSISTANT SECRETARY
OF TIE WASHINGTON Gas
LIGHT COMPANY.
NJ " Weli-AIT- Chairman and zen
telnen OF the committee 7 have no me
nared statement 10 make I unde-sfar,,
the committee desired to ask me some
tueStlouS- Since that Information came
70 me / have prepared a Statement 90
ISUTeS JhaT 1 understood would ansu,cr
the questions that the COMMITTEES da-i~e,J
70 ask 1 nave no statement to r0st-r,
To ire committee before entering Ttv1ll77
Sucn an eXa1cinaJion as they desire -,
MI, MI Coaarey--A you assistant secre-
taIy or the con pany?
Alr- Whitwell-Yes, sir.