Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-09-28
Why the Public Doubts.

II must be evident to the promoters of
the new project for refinancing certain of
tho local public utilities that there Is q
profound public distrust of the methods
that have been adopted, however they
may commend themselves to the finan-
ciers. 1t may be true that they intend
only the most careful reimbursement Of
the capital obligations of the companies
ard that there will be no watering of
stock or undue weighing of overhead
charges after the manner so familiar to
the public. Possibly this readjustment
OF the finances will result in an improve
ment of the service. All this can be as
sumed, for the present, and still there
will be justification for feeling through
out the District that the wrong method
has been adopted to put the local utilities
corporations in possession of improve
ment funds.
The people of Washington cannot avoid
the feeling that this matter has been
proceeded with in the wrong way. The
fact of incorporation in Virginia, with the
location of headquarters at Camden, n.
j., is of itself calculated to promote I'M
easiness. This may be simply matter
of convenience, but it is a sort of con-
venience that the public does not exactly
appreciate It's net result is a complete
removal for the time of the corporation
which will have absolute control of these
utilities from the local jurisdiction and
the range of local scrutiny. While this
may not have been the object of those
seeking incorporation at Richmond and
establishment at Camden, 1t has never
thelesS been the effect and the public is
certain TO judge such matters by the
effects alone.
1t may be no more than a coincidence
that this plan for refinancing the local
corporations came at the time that the
public utilities commission bill was be-
ing hung up in the House of Representa-
tiyes and its failure of enactment appar
emily assured Nevertheless the public
is prone to deduce from this coincidence
that ii was more than casual and that
there was some sort of purpose on the
part of the incorporators Of the Rich
mond- washington company to
get this thing done in the absence of
public utilities commission that might
possibly take a different view of the mat
ter from their own. The fact that the
enterprise has been under way for nearly
q year does not necessarily argue against
this deduction. Indeed, it strengthens it.
Nor does the fact that there was no pub
lie announcement of any purpose to go
into Virginia for an Incorporation and
into New Jersey for headquarters for the
purpose of providing funds for local util-
tiles weaken the assumption that it was
hoped to put the project across before
the District knew anything about it. On
the contrary, the secrecy that was so sue
ccssfully maintained up to a few days
the hope to get everything arranged be-
fore there could be any popular protest
against this form of financing the Dis
trict companies.
So that, taken altogether, there should
be no feeling of surprise or irritation on
the part of those who are responsible for
this method IL the District people are
hostile or at the East skeptical of their
good faith. Washington has seen SO
much Of the evil of overcapitalization, not
only elsewhere but here, that it is frank
~ afraid of every proposition for the
adjustment of public utility finances
nat IS framed and forwarded under
cover That is why there is such an in
sIstent local demand for public utilities
commission and why today practically
the entire community hopes that this
/: present enterprise may be halted until
Congress can pass the pending bill in
some satisfactory form so that the finan-
cial reimbursement may be effected in cir
curnStances to establish rather than to
shake the confidence of the people