Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-04-24
Directors of Georgetown Com.
pany Said to Favor It.
PLAN FOR A new PLANT
Washington Company, Which Con-
trolls, May Furnish Supply.
OWNERS NOT ALL AGREED
Georgetown Stockholders Predict
Cut Will Be Made Despite
Adverse Views.

Developments today in regard to ths
possible reduction in the price OF gas
to consumers in Georgetown and the
ultimate merger Of the Washington and
| Georgetown gas light companies are as
follows:
The proposition for a new bond Issue
by the Georgetown company with which
to take up its old certificates Of In
debtedness and to erect a new plant.
| with the understanding that the Wash
ing gas company will supply gas to the
Georgetown company at 40 cents for
distribution while the new plant is be-
ing constructed. will be taken up at
the next meeting Of the board of d.
rectors of the Georgetown company,
May s.
| The plan to reduce the cost Of gas to
| the Georgetown customers will also be
discussed. 1t is understood that the board
| Of directors of the Georgetown company
will recommend that the new plant be
erected and that the gas be purchased
from the Washington company while the
plant is building. and that the plan will
be laid before the stockholders at their
| annual meeting. early in June
| The proposition to reduce the cost Of
gas from 81 to So cents a thousand Gu
bic feet to Georgetown consumers
probably will receive the favor able
! recommendation of the board Of d.
rectors also.
Owns Controlling Interest.
The Washington Gas Company owns
! controlling interest in the George.
town company. and il the board Of d.
rectors Of the Georgetown company
| and its stockholders go on record in
favor of the new plant and a lower
price in Georgetown, 1t will mean that
the Washington company favors these
changes.
1t was learned that the WASHINGTON
Gas Company now has an understanding
| with the Georgetown Gas Company
| whereby it furnished gas to the George
town company in such quantity as 1t may
be needed by the Georgetown company
for 40 cents.
The plant Of the Georgetown company
Is not able to keep up with the de-
mands Of the consumers. Some days
no gas Ia taken from the Washington
company by the Georgetown company,
but On others a considerable quantity
Is received and distributed. This gas.
(which is sold to the Georgetown COM
pany for 40 cents, is retailed at 81 by
the Georgetown company.
Silent as to Merger.
john R. Mclean, president OF the
Washington Gas Light Company, today
refused to say anything about possi-
sible merger of the two companies or
to discuss the proposed financial reor-
ganization of the Georgetown company
and the erection of a new plant and re-
duction of the price OF gas to So cents
across Rock Creek.
George Howard. president Of the George
town company, also took the same posi-
ton.
R. II. Goldsborough. director of the
Washington Gas Company. whose state
ment in regard to the reduction in tho
price OF gas in Georgetown and the pos
sibe merger CT the two companies was
denied by Joseph Letter. another director
his belief today in the plan outlined by
himself.
TT is only fair to the people of George
town that the cost Of gas there be the
Mr.. Goldsborough. "Mr. Letter will And
himself in the minority il he attempts 10
force his views upon the stockholders Of
the Washington Gas Company"
Joseph Letter left Washington SatuP-
day to go to Chicago, 1t was said at his
residence.
Mr.. Letter is a member Of an advisory
committee Of three members of the boar!
of directors Of the Washington Gas Light
Company. This advisory committee. con-
sisting Of James VI. Green and Howard
Reside. in addition to Mr.. Letter, has
worked a number of changes in admin
istration of the affairs Of the gas COM
pany during the last few months. it 10
said.
Much has been done, it is said. to re-
duce the expenses Of the company. Mr..
Reeside today refused to discuss the mat
ter In controversy between Mr. Colds
borough and Mr.. Letter.
In Favor Of Reduction.
Robert ID. Weaver, a member OF the
board of directors OF the Georgetown Gas
Light Company. said today that he would
favor the reduction in the price OF gas to
SIS cents and alsO the erection Of new
gas plant for the Georgetown COMPANY.
He said that with the erection Of such
a plant the Georgetown company would
be able to sell It's gas at a much lower
rate than at present. The plan outlined
by Mr.. Goldsborough, he said, would
probably be adopted. AS to a possible
merger of the two companies. 1t was q
remote possibility. he said.
The announcement Of plans for a flnan-
cial reorganization Of the Georgetown
company and the possible merger with
the Washington company did not affect
the price Of gas ,on the local stock ex.
change today.
Favors Merger Of Utilities.
There ought to be one gas company
instead Of two. There ought to be ono
railroad company instead Of two Things
are tending nowadays toward q COM
bination or a simplihcation in the mat.
ter of public service corporations.
Il believe that the public would be bet.
ter served by q single corporation. in
stead of two but this is purely theoreti-
CAL The District Commissioners take the
stand I have outlined as a matter OF
public policy. but they arc In no way try
Ing to influence the gas companies to
MERGE
This il the answer today Of Commits
sioner Rudolph to the question Are
the Commissioners interested in a merger
between the two gas companies In the
District Of Columbian
Question Of Taxes.
From District building standpoint the
gas company problems seem to be oen-
Tered entirely in the question Of whether
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