Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-06-22
Mr.. Letter Declares Local
Supply Best in World.
ANSWERS MANY QUESTIONS
Testifies Before Lobeck Subcommit.
tee of House District Body.
States Company Could Not Make
Profit With Seventy-Five-
Cent Product.

Joseph Letter. president OF the Wash
ington Gas Light Company. testifying be-
fore the Lobeck subcommittee of the
House District committee today. said.
with other things. that Washington has
the purest gas in the world. When the
testimony given today before this subcom-
mittee is officially printed, with the tables
and statistics, 1t could be labeled ''All
About Washington Cas-" and the label
would be nearly correct Mr.. Letter told
the committee he wanted to lay the gas
business before the public under strong
searchlight, and that there wasn't any
way of information.
That the company cannot make sew
enty-five-cent gas under present re-
strictions and conditions he was. posi-
tive
Under the present cost Of manufac-
ture," asked Representative Lobeck,
do you think you could d, furnish the
city with gas at IS cents?"
Il don't think about It," was Mr..
Letters reay, II know. And I know
we could not. We would have to stop
dividends. 1 will furnish you state
ment showing the deficit we would
have under seventy-five-centg gas"
Could Make No Dividends.
AT IS cents you would make no
dividends?" asked Mr.. Lobeck.
'Oh, we'd be able to pay some slight
return. but not the 6 per cent the stock
holders are entitled to. as the Supreme
Court has stated in the Consolidated Gas
decision
Mr.. Letter said that there had been a
deficit. or a failure to advance in profit
making, by about $133, 900 last year, and
that it would have been more had the
officers OF the company charged off GER
tain depreciation which has occurred. In
response to the questions he also said
there had been no particular improve
ment mechanically in the company's
methods in the last year OF two.
But we have reduced costs by making
every one work more. by getting more
have them loaf around the place 80
much"
Representative Lobeck asked about the
cost OF gas in Baltimore, and Mr.. Letter
said Baltimore could get gas coal cheaper
than Washington could.
'srhere is a discrimination against
Washington in freight rates. Baltimore
gets a rate % cents lower than we do.
and that in the face of the Baltimore
coal being hauled right through Wash
Don't you have a complaint: Haven I
you taken the matter up with the inter-
state commerce commission" asked Mr..
Lobeck.
Reason for Difference.
'They won't listen. The trouble is one
is a seaboard rate, the other a local COM
modify rate
However, tho intimation is that the
Washington Gas Light Company Is get
ting ready to beat the rate. the railroads
and the interstate commerce commission
by getting coal from a nearby port by
water.
Coming down to the ever-present ques-
ton of carbon monoxide, Mr.. Letter de-
Tended the purity Of the gas with consid-
cradle vim.
Anybody who shuts the doors and
stuffs the cracks and turns on the gas
Will die" he said
sentative Oadfield, author of the public
service commission bill. Are you willing
to say you make as pure gas as Is made
in other cities?'
I'VE make the purest gas in the world"
said Mr. Letter land no other city makes
gas.
Mr. Letter told about the valuation of
the plant, detailed statement of which
will be incorporated in the complete rec
ord of these hearings. He said the plant
is valued at about $13.OO0,OOO.
How much of that is paid in cash and
how much in water?' asked Mr.. Oldfield.
There is no water. All the stock Is
paid for in cash."
He stated he could not explain how
much money had been put into the gas
company and said that all the expert
accountants in the United States would
TAIL to discover just how many actual
dollars had been turned into the in
vestment. The reason he gave was
half a century. that the early books
were badly kept. that the directors. in
stead Of paying all the earnings in the
shape of dividends. would pay part
dividends and put the rest of the earn
ings back in the company. and things
of that sort, none of which We're
clearly recorded on the books In the
old days.
No Controlling Interest.
However, he said. the company pays
"a per cent on the capital stock. amount
ing to 100000. which is about per
cent on the total value Of the plant.
DO you own a controlling interests"
he was asked.
'.No We own about 5000 shares out
of the $4,000. The Preston family owns
6 600 shares The rest is owned in small
lots
Mr. Letter went on to say, in re-
Spouse to a query. that the people of
in some instances had fallen
into the habit Of regarding the Washing
ton Gas Light Company as. a savings bank
and had left the five or ten dollar de-
post with the company. drawing per
cent interest, and would refuse to take 1t
out When the company would see
large amount of interest accommodating on
some of these deposits it would send
for the owners, who ofttimes refused.
I'VE can't get 6 per cent anywhere else"
they would say.
Consequently the present administra-
ton has cut the interest down to 4 per
cent.
T. S. Tincher superintendent of works
at the plant. testified that all Of the car
bon monoxide troubles would be elimi-
mated with proper inspection by the Dis
rict officials and by the proper installation
Of safe gas appliances. Il. G. Runyan,
United States gas inspector for the Dis
trict of Columbia, told the committee OF
the law concerning inspecting gas for
quality.
WIN. r. SMITH NEAR DEATH. |