Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-12-21
Georgetown Company Ad-
vances to ST Thousand Feet.
PRESENT RATE is IS CENTS
Increase by the Washington Gas
Light Company Probability.
STATEMENT BY OFFICIALS
r. II. Goldsborough Favors Utilities
Commission, R. D. Weaver Suggests
Merger of Companies.

Several unexpected developments oc-
CURED today as "A consequence OF an an
nounceinent that on and after January L.
lol3. consumers of gas furnished by the
Georgetown Gas Light Company wifi pay
81 thousand feet for the commodity,
instead of the present rate of - cents.
This raise I'm price was decided upon
yesterday at a meeting Of the board OF
directors of the Georgetown Gas Light
Company, and one of the most important
developments today is an unofficial state
ment that there is a prospect Of n similar
increase in the price of gas furnished by
the Washington Gas Light Company to
users of its product on this side of Rock
creek
Other developments We're the issuance
of a statement by r. H. Goldsborough.
attorney for the Georgetown Gaslight
Company, in which he declares his COM
pany to be in favor Of the creation of a
public utilities commission. and the advo-
cacy by Robert ID. Weaver president ot
the Georgetown company. OF the consol-
dation of his company with the Washing
ton company.
kumor Not Confirmed.
Inc possible increase in the price of
gas by the washington company could
not be confirmed today, owing to the alb
sence from the city of Joseph Letter.
president of the company.
One man, however. familiar with gas
matters in Washington and Georgetown.
declared that he did not know how long
the present contracts of the Washington
company for oil and coal will continue
in force, and therefore could not say how
long the Washington company will con-
tinue selling gas at the present price,
but that he is certain this company will
be Obliged to raise its rates soon
these contracts expire unless the prices
of oil and coal take a material drop. in
asmuch as these two articles are the
principal materials used in the manu-
facture of gas.
Another man familiar with gas matters
in Washington and Georgetown also de-
clared that he is convinced that the
Washington company will soon be Obliged
to either ra'se its price for gas or install
d new plant for its manufacture, for the
reason. he said, that 1t is costing the
Washington company too much to pro-
duce gas with its present plant.
Statement by MI. Goldsborougn.
The statement of Mr. Goldsborough in
regard to the increase of price decided
upon by that company is as follows:
THE increase in the price of gas in
Georgetown is mainly due. as stated, to
an entirely unexpected increase in its
manufacturing cost. When the rate was
voluntarily reduced year ago from 81,
the legal rate to 50 cents, the prevailing
rate east of Rock creek. 1t was believed
that the cost of materials was far more
likely to decline. than to advance, and
that nothing like the perpendicular rise
in oil or coal. our chief ingredients, could
reasonably be anticipated.
Those of us who Were foremost in ad
vocating the reduction understood per-
fectly that it would involve small profits
for at least one season, but We believed
that the consequent development of the
business, the increase in the volume of
gas made and sold, would in the long run
more than compensate the stockholders
for whatever temporary sacrifice might be
involved.
1T is believed that notwithstan the
compulsory abandonment of it the result
has demonstrated the correctness OF that
theory; the increase in the volume of
business during the last year being i'm Il
ratio of twice as great as in any previous
season. running up the production nearly
80 per cent. But it is only proper TO say
that the increased cost of materials Is not
the only thing that forced this advance
in the price of gas in Georgetown. Under
what is believed to be the most unfair,
not to say iniQuitous taxation scheme, We
shall have to pay this year more than
one-half of our entire net revenue to the
District of Columbia in taxes
Other Reasons Cited.
Again under existing law relative 10
street lighting are forced to sell 10
the District all the gas il needs at
price approximating 40 cents thousand;
and yet again, the management over
there has been induced by what may.
without immodesty, be called public
spirit TO extend the company's mains
throughout miles of unproductive terri
tory, where there is not nor can be any
reasonable hope of profit for several
years: in a word, Ii has invested about
xspO 600 of the proceeds of its bond issue
upon which ii has to pay per cent IN
terest In a temporarily unproductiNe
plant This entails temporary Durdeh
upon the company equal to the amount
OF its annual dividend.
FINALLY il may not be unprohtable 10
saw mat Il there were "A public utilities
commission in Washington the Necessity
for making this reduction might nave
beer. obviated, for one of the powers usu-
ally aranted to commissions, ana, IN
fact, carried by the Gallinger bill, Is the
right to regulate the power ana purity
of the company's product.
.In such a case the commission might,
and no doubt would, nave consented 10
the reduction Of the candlepower from
TWENTY-FIVE, the local rate, TO seventeen.
the Boston standard greatly to the bene-
fit of all commemorative gas would De
better and the cost of making IL less
The saving in the cost of production, III
that event would very nearly compensate
for the rise in the price of materials
which has precipitated this action.
Increase in Revenue.
The increase i'm price by the George
town company, il is estimated, VIII
amount to about 800 month. or $50
600 a year to the company, which has on
it's books about 10000 customers.
1t is stated that under thespresent price
the company has not earned enough 10
insure payment of the semi-annual diVi-
dend of $4,000, and ii is possible that at
the semi-annual meeting OF the directors
of the company next month the usual
dividend will not be declared.
AS heretofore, the company VIII re-
o,,ire that bills be paid by the tenth OF
the month If paid later. the rate will be
81. ID per thousand cubic feet
The Washington Gas Light Company At
is stated. owns the majority of the stock
of the Georgetown company. The Wash
ington company sells gas for So cents net
per thousand cubic feet
Robert ID. Weaver, president OF the
company, said today that he
was heartily in favor of a. consolidation
OF his company with the Washington
company.
Il advocate such a consolidation" Mr..