Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-04-23
GAS MERGER DENIED
Joseph Letter Repudiates
GoIdsborough Statement.
NO CUT IN PRICE imminent

No definite plans for a merger Of the
Washington Gas Light Company and the
Georgetown Gas Light Company have
been made. nor will the price Of gas in
Georgetown be reduced to 81 cents in the
near future, according to Joseph Letter,
a director of the Washington Gas Light
Company, which owns a controlling in
terest in the Georgetown corporation.
Discussing a report to the effect that
the price of gas distributed by the George
town company would be reduced on or be-
fore July /. and that merger of the
companies was imminent, Mr.. Letter gave
out the following statement last night:
The Washington Gas Company, by its
advisory committee, repudiates the state
ment of it's position with regard to mat
ters pending with the District Commits
sioners and with regard to its relations
with the Georgetown Gas Company, made
by r. H. Goldsborough in local news
paper. By way Of explanation Mr.. Colds
borough is a director fthe Washington
borough is director of the Washington
minority of the board and has been in
the past identified with a policy which a
majority of the present board feels has
been prejudicial to the best interests of
the company as a public service corpora
ton
Protest Erroneous Statement.
I'VE, representing majority Of the
board of directors, hereby protest to an
erroneous statement of our position and
Of the facts. We regret that Mr.. Colds
borough, through his position as one Of
the directors. has been able to give color
to placing the company in false posi-
ton
r. H. Goldsborough, Oh the other hand,
In an interview last night. said:
IA financial reorganization of the
Georgetown Gas Company, contemplating
a new bond issHe amounting to from
S5D,OOO to $725.OOO. probably will be eff
fected soon after the annual meeting of
the stockholders of the company in June
The proposed bond issue is to be made
to enable the company to construct new
and thoroughly up-to-date plant for the
manufacture of gas. 1t is expected that
about $JOOUW, including the cost of the
land for the plant, will be expended on
the plant and that the restt Of the bond
issue Will be used to take up the certif-
Gates Of Indebtedness of the company.
THE price of gas to the consumers in
Georgetown probably will be made s.
| cents. instead of the present price, ST. a
thousand feet.
while the new plant is being con-
structed for the Georgetown company
gas will be furnished by the Washington
S1o l.tSi III SOilipdIS conferences are be-
ing held by representatives of the two
companies to determine upon what terms
the Washington company shall furnish
the gas. 4 tentative price advanced is 40
cents a thousand feet. This ii is said.
will enable the company to sell at 81
cents to the consumer after the cost of
service. taxes and other expenses have
been deducted.
The two companies have considered a
merger for a number of years. but so far
nothing has come of it. Cltimaely there
Will be merger. | believe. 1t would be
beneficial not only to both companies, bu,
also to the public. since it would make
for economy in the production and dis
tribution of gas
Whether Legislation will be necessary
for merger Of the two companies is
still an open question. and there are
several legal questions to be cleared uD
before that point can be determined
1.-The people of Georgetown are clamor-
ing because gas is sold to their neigh
bors in Washington at So cents when
they have to pay 81 a thousand feet
1t is up to the gas companies to remedy
this discrepancy now, and / believe that
"a remedy will be effected"
1t was learned last night that the men,
berS of the board of directors of the
Washington Gas Light Company, from a
business standpoint, would not be averse
to a merger of the two corporations. al
though they are averse to initiating such
move without first learning whether
the municipal authorities would approve
such q combination.