Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-05-09
REDUCE COST OF GAS
First Step Taken by the
Georgetown Company.
ACTION OF THE DIRECTORS
Resolution Asking Stockholders to
Authorize Bond Issue.
TO CONSTRUCT NEW PLANT
Half Million Dollars,to Be Expended
in Providing Up-to-Date
Equipment.
ACTION OF THE DIRECTORS

The first step looking to a financial re-
organization of the Georgetown Gas Light
Company and a reduction In the price of
gas to the Georgetown consumers was
taken at a meeting of the board Of d.
rectors of the company yesterday after
noon. A resolution asking the stockhold-
ers to authorize the bonding of the COM
pany to the extent of 100000. of which
$90O0OO is to be used in the erection Of a
new plant and the absorption Of outstand
ing indebtedness. was adopted by the
board The remainder of the bonds au
thorized will be retained by the company,
to be used as need arises.
| The resolution will be laid before the
stockholders at their annual meeting June
s, and it is anticipated that favorable
action will be taken.
| 1t is planned to spend 100000 on the
erection Of a new plant, and the other
$3Oo.OOO to take up certificates of indebt-
| edness and notes. The bonds will bear
per cent interest
Scope of Movement.
While the more immediate result of the
| proposed reorganization and erection of
| new plant will be the reduction Of the
price of gas to the Georgetown consum-
ers from 81 thousand cubic feet to IS
cents the price paid in Washington for
gas, 1t is believed the erection of the
| new plant will have an ultimate effect
| on the price Of gas in Washington, caus-
| ing further reduction. 1t Is explained
that the new plant for the Georgetown
| company Is to be up-to-date in every re-
spect, capable Of turning out gas as
| cheaply as can any plant In the country.
1t will be located near the Chesapeake
| and Ohio canal and the branch of the
| Baltimore and Ohio railroad that now
srdFe Ws sSch he there W
be no charges for hauling materials from
the canal and railroads such as now
make a big item of expense for the
| Georgetown company.
Merger May Result.
Men who have followed the situation
in regard to the gas companies in the
District declare that eventually there will
be a merger of the Washington and
Georgetown companies: that such
merger would reduce the cost Of gas by
doing away with many salaries, and that
| the people of the District would benefit
| largely by it. The plant for the George
town company will be erected with the
idea in mind that 1t may be used to
east as well as west of Rock creek.
The Washington gas company at present
owns majority of the SHARES OF stock
of the Georgetown company. The inter-
ests of the two companies and their
stockholders are therefore practically one,
it is said and should Congress enact
law for the creation of a public service
commission for the District it is believed
a consolidation of the two companies
| would speedily follow.
Plant Unable to Meet, Demands.
At present the plant OF the Georgetown
company cannot fill the demands made
upon it. and the Georgetown company Is
forced to buy enough gas to make up the
desired quantity from the Washington
| company at 40 cents a thousand feet. 1t
is planned to purchase all the gas needed
in Georgetown from the Washington COM
pany. probably at the same figure, while
the new plant is building.
| A committee of three members Of the
| board of directors Of the Georgetown
company has been investigating plans
for a financial reorganization for some
time. and the resolution adopted yester-
day was in accordance with a plan worked
out by the committee.