The Washington times., 1911-05-09
GEORGE TOWN GAS
DIRECTORS AGREE
TO RATE REDUCTION
Cut to EigSty-Hve Gents
Will Be Put Up to
Stockholders.

The initial step in the proposed devel-
opment of the Georgetown Gas Light
Company has been taken. The board
of directors has asked the stock
holders to approve an immediate bond
issue of $So0,00O for the construction of
a new plant and the absorption of the
outstanding debt OF the company, and
has informally agreed to a reduction
from 81 to So cents la the price OF gas.
This action was taken by the directors
at their monthly meeting at the George
town gas offices yesterday afternoon.
The proposal will be submitted to the
stockholders for their approval or re-
lection at the annual meeting, June B.
The board did not officially agree TO
the reduction. but is understood to have
decided to recommend II TO the new
board. which will be elected at the
will. be substantially the same as the
old, it is probable the reduction will be
made, to be effective July !.
Bond Proposal Adopted.
The directors voted to ask the stock
holders for authority to issue $4,000
bonds, with the understanding that
$SO00VO would be issued at once and
the remainder as the money is needed.
to enlarge the new plant and extend the
GEORGETOWN system In the northwest
section of the District. which is build
ing up rapidly.
The first $500, 900 of bonds will be sold
to get money to build new plant. The
next $225.O00 will be used to retire the
company's certificates Of indebtedness.
amounting to $225, 200 and issued for cash
several years ago. The other S5.O0 will
be used to pay a floating debt. incurred
for extension of mains and held by
Washington banks.
Georgetown directors today would noI
discuss yesterdays meeting, but II Is
understood the action on the bond Issue
and the reduction in the price OF gas
was not unanimous William B. Orme,
the secretary of the Washington COM
pany and the representative of the
Washington Company's interests in the
Georgetown company. is understood 10
have opposed the development program.
William A. Mearns, another director
friendly to the Washington company. l.
understood to have voted with Mr..
Orme
Five Directors Favor Plan.
The other FIVE directors. Maurice ].
Adler, S. Thomas Brown. w. A. Leetch.
George L. Nicholson, and Robert II.
Weaver, all residents of Georgetown,
are reported to have put the program
through
The presidency of the Georgetown
company for next year was not discuss
ed, but will be an issue in the stock
holders meeting. The Georgetown d.
rectors and stockholders are reported to
have decided to retire George Howard
and elect Mr.. Weaver. Whether ther
can do this depends on whether the
Georgetown stock held by the Washing
ton company is voted for or against
their plan. Whether the bond issue Is
approved also depends on what is done
with the Washington company's stock.
The Georgetown stockholders are un-
derstood TO have talked of getting an
injunction to prevent the voting OF the
Washington Companys stock on tne
ground that TO vote II would be NioL1- t
ton OF the Sherman antitrust lew. Thls
situation draws the Washington COM
pany's directorate into the controversy
Washington Board Divided.
II is understood the Washington board
is divided on the Georgetown program
II those who favor it are in the major
ity. the. stock will be voted for the de-
velopment plan or not >voted at all. 1t
is reliably reported today that major
ity of the Washington board approves
The Washington companys directors
also held meeting yesterday and dls-
cussed the Georgetown plans ln1or-
mally, adjourning without taxing any
action. 1t is said they will wait until
the new Georgetown board is organized
before resuming negotiations over inc
nroposal that the WashingtcG compaEy
sell gas to the Georgetown c.npany 81
20 cents per thousand cubic rect pend
ing the completion Of the new George
rN1o Mt