Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-04-27
CHEAPER GAS PLAN
How It Is Proposed to Benefit
Georgetown Consumers.
NO MERGER At PRESENT
Washington Company Will Sell
Product to Company Over Greek.
QUESTION OF A NEW PLANT
Matter Of $500, 900 Bond Issue for
the Purpose Discussed by
Stockholders.
NO MERGER At PRESENT
QUESTION OF A NEW PLANT

Cheaper gas for Georgetown may be
brought about by the sale Of gas to the
Georgetown company by thte Washington
Gas Company for distribution in George
town. It was suggested today that re-
duction in the price Of gas from 81 to 50
cents on the west side of Rock creek
could be made more economically in this
gay than by the issue of new bonds by
the Georgetown company and the erec-
ton of a new plant capable Of supplying
all the demands for gas. by the George
town people. At present the big west
plant of the Washington Gas Company
is supplying some of the gas used by the
Georgetown company at 40 cents a thou
sand cubic feet-when the production Of
the Georgetown plant fails to meet the
demands made upon it.
Question of Bond Issue.
y question was raised today by persons
connected with both the Washington and
Georgetown gas companies as to the ad-
visibility of issuing 100000 in bonds for
the erection of new gas plant in
Georgetown. 1t was pointed out that to-
day the company has out certificates of
Indebtedness amounting to $226OO0: that
81. and that after paying the interest on
the debt, the operating expenses and div
idends there is practically nothing left.
To increase the Indebtedness of the COM
pany and at the same time reduce the
cost Of gas, it il declared, might result in
a deficit.
The Washington Gas Light Company Is
q large stockholder in the Georgetown
company. owning 3,525 shares. q major
ity Of all the stock. The remainder.
2.475 shares. is held by many citizens
Of Georgetown and Washington: II
there Is to be a new issue Of bonds by
the Georgetown company. It must be
.ington company. being the majority
stakeholder, will be in q position either
to vote the bond issue or to kill it, it
is said. But q question has been raised
pose its will upon another because 1t
owns a majority Of the stock. IL the
minority stockholders. owning large
part of the stock, demand recognition.
The antitrust law and the common
law may be invoked, it is suggested,
should such trouble arise.
Aim to Be Fair.
Friends Of the project for financial re-
organization of the Georgetown company
and the erecting Of Q new plant declare
that they do not believe the Washington
Gas Company will oppose the plan. They
say that 1t is only fair to the people Of
Georgetown that they should have 'home
rule in connection with their public
utilities. and also that they should have
an opportunity to manufacture gas and
sell 1t as cheaply as 1t 10 sold In other
parts of the District Of Columbia.
1t Is unthinkable that any corporation
in the District owning stock in another
should insist upon overriding the other
stockholders" said man prominently
connected with the gas companies today.
A committee Of the board Of directors
Of the 0eorgeton Gas Company was ap-
pointed ut q past meeting Of the direc-
torate to investigate and report on a plan
for tho financial reorganization Of the
Georgetown company, and the erection of
q new and up-to-date plant to furnish gas
as cheaply as possible to the people of
Georgetown. This committee will make
its report to the board At its meeting
May &