Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-03-09

NOT AiioWeO 10 extend their lines - Mucai
as they wish. but are restricted to limits
prescribed by Congress and are kept OF
certain streets. He also pointed out that
In Kansas City a straight hve-cent fare is
charged as against q four-and.one-stxth-
cent fare here.
AS Senator Gallinger continued to de-
fend hts bill against tho criticisms OF
Senator Works. Mr.. Works interrupted
to ask:
"The senator from New Hampshire
has spoken now q number Of times
about conference that was held with
respect to this bill. / would like to
ask who was present and took part in
that conference at the time he says
the Commissioners consented to these
changes being mader'
Declines to Be Intercepted.
1.-The Commissioners were present
or the Engineer Commissioner. who rep
resented them. was present" Mr.. Gal
lfnger replied.
Was anybody present representing the
utility corporations?" persisted Mr.
Works.
Yes" Mr. Gallinger said
What corporations?"
well. Mr.. President am not going to
be INTERCEPTED by the Senator from Cali
fornia. replied Mr.. GallinEer. II did con-
suit the utility corporation. I think they
are entitled to consideration" He went
on to give the list of representatives Of
the corporations who were invited by him
to attend the conference.
Senator Pomerene asked what objection
there could be to Limiting the purposes
for which stocks or bonds might be issued
and limiting the purposes to which the
proceeds of the sale OF the stocks and
bonds might be applied in order to pre-
vent the excessive issue OF stock or. In
other words, watered stock?"
II DO not think that Is necessary" re-
piled Mr.. Gallinger THE powers Of the
commission are very complete In the mat
ter OF increasing stock ISSUE. and. after
not Know or any occasion in recent years
where dividend OF that kind has been
paid by any public utility corporation.
tnlnk that some years ago there was q
case OF that kind. but 1 have an impress
sion that the rates that are now being
exacted for public utility service In this
District are not such as to give public
utility corporations much chance to de-
clare dividends Of that kind.
Price Of Gas Injected.
when commenced. Mr. President,
only few years ago, to take up the
question OF the price of gas in the District
Of Columbia it was $1.25 in Washington
and $3.50 in Georgetown. The, price is
now s. cents in both cities. and had
hoped for a still further reduction in the
near future, which trust will come.
They are not making inordinate profits,
so far as l can ascertain. and I have
made very diligent inquiry along those
lines. The railroad companies have not
made irordinate profits. II the senator
will take the hearings before the COM
mittee on the District of Columbia on the
universal transfer bill, IL Mr.. Hamilton.
who Is one Of the best known and most
respected citizens In the District OF Co
lumbia, is to be believed. the Capital
Traction Company did not make any
profits last year. except $1,000. believe.
and they are now required to dispense
with all their tfailers and buy a COM
plete outfit Of new cars. which is going
to cost hundreds of thousands OF dol
lars.
Zone or two OF the lines of the Wash
ington Railway and Electric Company
have been profitable, but they took over
the control of nine or ten other lines, no
one Of which was paying its running ex-
not making any inordinate profits They
are getting along fairly well. but I do
not think We want to tie these corpora
tions up and put them in a position
where they cannot give either adequate
facilities or make adequate improvements
am in favor OF looking upon these cor
porations as being controlled by men
who have some civic pride and some in
terest in this great city that we are all
trying to develop and improve. I want
to give them a little leeway, and I think
they ought to have II.
Alleges Issue Of Watered Stock.
Senator Pomerene came back with q
statement that watered stock had been
issued by some local corporations. Re-
ferring to hearings that were held on the
universal transfer bill, at which the rep
resentatives Of local street railway lines
appeared. he said:
II think, without meaning any rehec-
peared before the committee, 1t can be
public utility corporations In this coun.
try that make excessive profits, II we are
to accept their judgment. They are
constantly watering their stock, and /
public utility corporations in this Dis
trict has been watered. The fact Of the
matter Is that a goodly part OF 1t Is
water.
I'm an editorial which was printed in
one of the Washington papers q few
months ago. the capitalization of the
street railway companies was given. to-
gether with mileage and capitalization
per mile. In the case of the Capital Trac-
ton Company. the capital stock issued
was $IO,UU,UUU, INC HuicdSc VI udChS was
2S.5SS miles, indicating that the capitali-
zation per mile was $685.. 675. In the state
ments made before the District committee
the presidents Of these companies were
not able to give us very definite informa-
ton as to what the cost Of construction
would be. One Of the presidents. who
said that the railway companies could
not afford to give free transfers. was not
able to tell US whether the cost per mile
was 10000 or 100000 His company.
the Washington Railway and Electric
mileage of that system was 1915 miles.
and the capitalization per mile was 1885,
go
lis not the public interested in knowing
whether there has been any watered
stock? Ought we not to provide in this
bill that hereafter there may not be other
and larger issues of stock or OF bonds UNI
less the commission knows the purpose
for which these issues are made and the
derived from the sale of the stock and
bonds are to be applied? Must we not
have all OF these facts In order that we
NAV he able to ascertain what is q rea-
sonable rate Of fare and what Is not?"
Objects to Statement.
Senator Reed q minute later took up
the reference of Senator Gallinger to tho
men who control the local utility corpora
tons, as quoted above. by remarking:
Il have not much confidence in prop
osition which would leave the question
Of the regulation Of the charges OF pub
lie utilities to the owner Of the public
utility upon the ground that he Is q re-
.oaotoh,a gentleman and possesses great