The Washington herald., 1912-08-25
UTILITIES BOARD
IS NEEDED HERE
Report of Representative Lobeck
Starts Movement for Estab-
fishing One.
GAS COMPANY STOCKS
MAY BE AFFECTED
Washington and Georgetown Com
panies' Amalgamation May
Be Delayed.

The urgent need OF 4 public utilities
commission for the District of Columbia
was shown by report on the Washing
the House Committee on the District OF
Columbia yesterday by Representative
Lobeck OF Nebraska, chairman of the
committees subcommittee on water,
light. and telephone.
The report by Mr.. Lobeck did not con-
tain a Recommendation for creation OF
such q commission. but most of those
who studied the report. which recon-
mended that Congress, before enacting
legislation affecting the Washington Gas
Light Company. ought to make a thor
ough investigation, believe that Congress
will supply the need Of a commission
before the investigation is completed.
Report Is Severe.
This general belief probably has taken
the edge OF Mr.. Lobeck's very keen
statement OF conditions relating to
Washington Gas. as he found them.
His report was SO severe as to express
doubt of the validity of s6ooo00 OF capital
stock, converted from that amount of
certificates Of Indebtedness. 1t declares.
Indeed, the company appears to have
been unable to increase the capital stock
fast enough to keep the dividends at a
reasonable rate on their face" It as
serts that the penalty on gas bills not
paid by a certain date is clearly Illegal.
The report made in response to the COM
initial of two bills, to fix the price OF
gas at 20 cents a thousand cubic feet,
makes no recommendations whatever on
the bills for these reasons, declared by
Mr.. Lobeck:
1T must be conceded that Congress has
the power TO regulate the charge for
gas. How can Congress exercise this
power with justice to the company and
the public in the absence of Information
touching the facts sought to be ELECTED
by this resolution?
THE company is entitled to a fair and
reasonable return on its investment: the
value of the investment in dollars must
be known in order to determine what
woGid be a fair and reasonable return.
This return must be paid by the public.
From every standpoint the inquiry should
be ordered.
Again. the inquiry should be ordered
to the end that proper standard for the
of all publc-service corpo-
rations may be declared and established
by Congress. capitalization is the key
to government control and regulation OF
all corporations subject to its jurisdiction.
The company under discussion and in
Quiry furnishes to Congress an immediate
opportunity to declare a wise and prudent
public policy in respect to capitalization
OF corporations generally. The opportun-
ity should not be lost
Resolution in Part.
The resolution to provide investigation
OF the company. as recommended by Mr.
Lobeck. is in part:
In making such investigation the
shall especially inquire into
the capitalization of said company, in
its stocks, bonds, and certifi-
Gates of Indebtedness, when and by
what authority issued. their volume
and value; also its holdings in other
their character and value;
also the extent. character. cost. and
value Of physical property of said COM
pany, the cost of operation, dividends
declared, how and when paid, the vol
ume and quality of gas sold. and price
collected therefor. the character OF
service, and all other matters relating |
TO the business of said corporation"
This resolution, which IT was indi-
Gated yesterday will have a good |
chance of adoption when Congress re- |
in December. impressed peo-
pie favorably. 1t probably will serve |
to prevent any grave depression of the |
pIiSc VI gas SECURITIES on the L
Opinion as to the effect of the report |
on the securities was divided. One |
broker yesterday said: The report is
bullish"
May Affect Stocks.
Another broker said the report wasl
severe" and would cause Washington
Gas to sell off,
Out of discussions of the report by
business men there grew gossip as to
what effect, If any, it would have on
plans. of which there is sporadic rumor,
'or an amalgamation of Washington Gas
and Georgetown Gas. The gossip wasl
not well defined, but it Is believed the
Lobeck report bringing a promise of the
tends to defer negotia-
ions.
But the public utilities commission idea
prevailed over investigation expectations
rhe need of the commission is admitted,
md the desire Of 1t is general. Notl
'nly the people, but the corporations
'wning the public utilities, seem anxious
or the creation of a commission which
an intelligently and expeditiously direct
md regulate the utilities with fairnessl
o both the people and the corporations.
There was a general feeling last night
hat the probability of an early passapel