Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-08-24

tended the company should have power to
| issue any certificates Of Indebtedness.
| The charter act of 1S4S discouraged any
undertaking of that kind when 1t pro-
vided in section IL of the act as follows:
And be 1t further enacted. That each
of the stockholders of the WASHINGTON
Gas Light Company shall be held Haoie
| in his or her individual capacity Tor All
tracted or incurred, to be recovered by
suit as other debts or liabilities before
the court or tribunal having Jurasdlcuon
of the case. approved. July 8, ISIS, ch.
81. Stat. L. 124.C
ferred to has asserted it's control of the
capital stock issued by the company man.
ifestly for one purpose. that purpose pc
ing to protect the public against eXtor-
tionate charges for gas based on an eN-
cessive capitalization. If an investiga-
ton should develop that the x2.UoUo
evidenced by certificates of Indebtedness
bearing per cent interest in fact repre-
sent undivided profits and do not repre-.
is clear the public has been wronged.
Such wrong cannot be remedied by Con-
gress unless and until Congress first as
certain the truth about the actual con-
sideration for such certificates.
Price of Gas Discussed.
"The original act of 1913 was silent on
Tie SuDJcCI Va 6do PiASNS. 'S - -
June %, 1860, was the first attempt of
Congress to fix the price. The price was
made at 35 cents per hundred cubic feet.
subject to discount Of 10 per cent II paid
at a certain time Qo Stat. L., 1922
1.-THE act of 1862 fixed the price from
the lst day of July, 1862 at 3 cents
per hundred cubic feet Of gas furnished
to the government and 80 cents to other
consumers. az Stat. L.. 534)
The act Of January 30. 1853. repealed
December. 1864. for the benefit Of its
stockholders greater price for gas than
40 cents per hundred cubic feet. subject
to 10 per cent discount on all govern
ment bills and > per cent for all other
consumers. u3 Stat. L.. 1861
The act of June %. 1874, entitled AN
act regulating gas works, fixed the
price of gas at the rate OF S.5C per
eminent and to other consumers $50
per thousand feet. uS Stat. L., 217)
THE act of June g. 1885, fixed the price
of gas for the Washington Gas Light
Company at a rate not to exceed S1.1O
per thousand cubic feet until the first
day of July. 1901. and after that at 81
per thousand cubic feet. This rate has
recently been reduced by the company
to 90 cents per thousand cubic feet IL
paid at certain time. but raised the rate
10 IL tiOt pau tHci, CiedT tlOld-
ton of law
THE last annual report Of the COM
pany. made to Congress February 1,
1910. purporting to give detailed state
ment of its business for the year ending
December 81, 1909, shows the net earn
ngs. after deducting operating expenses,
to be $646,631.jO. This was II per cent
plus on a capitalization of $500 900. as
Stunning the certificates of Indebtedness
to be a part of the capitalization. II
we exclude the certificates of indebted
ness. a net earning OF "a per cent plus
on the actual capital stock Is reported
by the company.
1T goes without argument that such
net income is excessive. unless the facts
shall disclose that the actual value or
the plant and the actual amount invested
is far greater than its capital stock. On
page 2 of the report 1t appears that what
is called "a regular dividend Of $.0UOO
had been paid the stockholders: also an
extra" dividend of $o60,C0O. or I'm all ~
per cent paid in dividends during the
year In addition to these dividends the
company expended 30s.JA.O6 in extern
sions, constructions, etc, and had icIt
a surplus of $23S, 355.0.
Duty OF Congress.
ssuyh.r %A0a p~x,or$ ~ <1ye counnanv for