The Washington times., 1911-11-26
IN LOCAL FINANCIAL CIRCLES
By I. A. FLEMING.

/ ~ - <As
When the records of 1911 have been
read for the edification of the share
holders of the Washington Gas Com
pany the latter can make the usual
motion of approval Of directors actions
with good grace and with less
| Of the formality than has character
ICED meetings in the past. This 10
just another way of saying that the
record Of the year will be one indi-
cative Of great prosperity.
The figures will also Justify the be-
lief that reduction in price to con-
sumers means greater consumption.
and In the long run IL q wise move-
ment for the company.
Naturally there is a limit in re-
ductions--a price at which loss will
be sustained. but 1t is not at IS cents.
1t is the same story that has been
told in New York and other cities
where the price has been cut--the
, receipts have shown satisfactory
gains.
Perhaps the most satisfying fea-
| ture Of the annual report will be the
economies OF 1911. Stories have been
told Of enforced economies In which
the board of directors was not q
| rector considered himself called upon
to aid in cutting down expenses.
Where thousands and tens Of thou
| sands Of dollars have been expended
for legal talent in years past, where
valuation experts have flied enormous
| bills. It will be found that a few
i hundreds will cover the. 1911 record
The man with the drag" and the
man with the pull" have lost both
| the drag" and pull"
"A place for friend may be found
mi-occasionally. but only with suf-
| fcient duties to make the salary an
| equivalent for services rendered, and
the pay roll will show the economies
T, in this line.
The Gas Company has made every
effort to increase its business, laying
| service pipes In new territory. keeping
pace In the development of better light
: ing facilities for the District, meeting
the encroachments of electricity in the
municipal field Between the two
Washington soon will be, as It should
be, one of the best lighted cities IN
the nation.
All this Is in the nature of gener-
alities.
! The facts are that the estimates of
feet
i The economies in coal, in labor. in
% %aries, etc. are placed at between
They are facts that should resu..
! In another drop in the cost of gas to
| consumers before very long, probably
after the economies have been in oper-
II they Should encourage the purchase
of Gas shares by investors.
Last year the gas company did not
quite earn its dividend of $3.50 a share.
this after all charges. interest, etc.
/ and with tine push and get-there spirit
shown by the directors and with the
reduction in the cost of coal, there
lation of healthy surplus is assured,
starting with this years surplus as a
| nest esq.
During the early summer months the
consumption of gas failed to show any
Increase, barely keeping pace with the
records of year ago. But with the
coming Of August the consumption
started to show an increase. with Sep
important They averaged more than
a million cubic feet a day and on one
day the increase practically equaled the
| entire production of the corresponding
day In the previous year.
| The installation of the commercial de-
partment. planned and announced at
the annual meeting. was abandoned, un-
I'll 1t was taken up this fall and the
indications are tkat 1t will greatly en-
hance the sale o2gas as a fuel and a
heater as well. The returns SO far are
| beyond the expectations of Vice Pres-
| dent Reeside. who attended to its in
| stallation.
All things point to an unusually large
net profit as result of the years op-
Grafton. and satisfactory reduction Of
| leakage OF gas and expense accounts as
! WELL
Information is to the effect that all
is harmonious in the company.
Returns from the annual convention
of the American Bankers Association
are to the effect that the visit to the
water works at New Orleans on Friday
was thoroughly enjoyable.
| The delegates enjoyed the afternoon
so much that about $50 planned an ex-
tended trip via water to the Panama
on four steamers. They will be the
guests of the President Of Panama at a
reception, and may consider assisting
IN financing the little republic, should
there be any special calls made for aid
They Will not return to New Orleans
until December 2.
1t Is interesting to note the conserva-
| tive character of the investments made
by the American Bankers Associa ton
| or Its surplus funds. matter of SO.
600 Government as, $4,000 AtchisOn As,
1900 Chicago. Burlington and Quincy Y,
Illinois Division, As, and $50, 900 New
york City 3h' per cent stock. completes
list that stands out boldly as safe and
sane. In commenting on this list OF
Investments one authority says: "The
bankers have held to Investments in
which safety, convertibility are more
regarded than a high rate of interest"
1t certainly looks like a safe Investment
Tor widows and orphans. The element
| OF chance is eliminated.
President Hoover of the National Saw
| ings and Trust Company, President
White of the Metropolitan National, and
Messrs Mearns and Williams headed
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