The Washington times., 1911-05-21

Inc WaSnluBLOu Gas NOAhPdhJ WA
never buy the Georgetown Gas Com
pany, even though it may today own
81 per cent or even q larger amount OF
the capital stock Of the smaller cor
poration. II anything happens 1t Will
be a case of the Georgetown company
acquiring control Of its larger neighbor
the tail wagging the dog.
There Is in the grand old charter OF
the Georgetown Gas Company, In
perpetuity," a provision which forever
prevents the Washington Gas Company
from doing business west OF the crooked
line followed by Rock Creek. An act
of Congress would remove the obstacle,
but In the present mood OF congress
concessions to corporations are not
fashionable, but even II granted the
permission would contain some restric-
tive or compensatory clause, one or
both.
The Washington Gas Company has
about reached the limit of its finan-
cling 1t will require the savings con-
tempIated in legal expenditures and the
checking of the enormous loss by leaks
to enable the corporation to meet its
fixed charges and continue dividends on
the present scale, SO that further
financing seems to be out Of the ques-
ton.
The Georgetown company, however, Is
a fine, although limited field for finan-
cial operations, the stock issue at pres
ent being the same as when the COM
pany was incorporated by act OF Con-
gress, July 20, 1854, namely, $150,OO0
There is, however, an authorized is
sue Of $250,000 debentures IS, Of whcn
s225, 900 are outstanding. This block OF
fives was put out at par and not given
away, as were the 6 per cent debentures
OF the gas company.
But even in financing operations the
Georgetown company is not sufflcient
money maker to be laden with a dollar
more of Indebtedness.
1t has been extending its mains and
making connections in the sparsely
settled districts of the northwest that
have recently been opened to settle
ment." Returns from this investment
will not be available TOR years to
come. but the wisdom of this move
ment cannot be questioned. Friends
of the Georgetown Gas Company
claim that had 1t been able to manu-
facture all the gas required by 1t last
wear there would have been a, surplus
Of at least $4,000 instead of $4,000,
therefore the demand for the new
gas. The district supplied by the
company is growing apace, and un-
Guestionably there is a call for better
facilities, in the end that = quantity
SUFFICIENT may be manufacturer for
the widening territory and that there
one of the officials Of the George
town company Is authority for the
statement that the Washington Gas
Light Company was 9PPSsed 6o0 eSo to Put. 36fs
little company"
AS a dividend payer, paying $3.50 a
year on a valuation of 800 a share
Washington Gas stock ought to be
worth all that II is selling for ana
legitimate invaGt-
ment
AS a speculation on the idea of
something doing when Congress ad-
journs," 1t does not appear to be full
blance to the foolish story incident
to the retirement of the As of the
same corporation The first tale was
that the company would have to pay
interest on the As up to date of ma
turity or about sixteen years, before
compromise by paying better than ten
years interest. But II was the share
holders and not the bond holders
that were invited to the fat feast.
The Georgetown Gas Company in 1910
made $107, ,937.0s from the sale Of gas,
$31, 1854 from the sale of by-products,
a total Of s139.772.42. and this at an
expense of S114.352.12- 1t also paid s17.-
SIe46 for gas. chiefly to the Roslyn
and interest had a net balance as
result of the years operation Of $59.12
With 1910 only a few months gone,
the outlook for Georgetown melons
In the immediate future cannot be said
to be very encouraging.
The Government during the last week
placed $1,000 900 to the credit Of local
national banks complying with the pro-
visions for such deposits of tax money
to wit, accepting the same by making
deposit of acceptable security with the
Treasury. Next Monday another 81, 900, 900
will be given out, and on the 18th
instant the third and last installment
of like amount.
Security for these bonds is exacted as
follows:
i. deposits of United States. District
OF Columbia. Philippines, City of Ma
nila, and Porto Rican bonds at par
value.
2. Hawaiian bonds at 90 per cent. Of
face value.
8. Philippine Railwa: and Manila Rail.
road Company bonds at 30 per cent OF
market value.
l. High-class. first, general refunding
and consolidated mortgage bonds Of
railroad companies at 80 per cent OF
market value.
5. Bonds of any State that has not de-
faulted in the payment of principal or
interest in ten years.
G. Bonds Of any city. county, or
municipality, the obligations of which
do not exceed 10 per cent Of the as
sessed value Of its property for tax
alton purposes, provided the county,
oCDcnMAl