The Washington herald., 1912-01-25
HOUSE MAY FAVOR
CAS- WORKS SALE
Rothermel Bill for Govern
.ment Ownership Finds
Many Supporters.
SAY PLAN is FEASIBLE
"As Simple as Land Condemnation, "
Members Say-Commissioners
Begin Probe of Corporation.

Optimism prevailed among many mem
bers Of the House yesterday over the fu-
ture Of the RothermeI bill, which calls
for the purchase by the government Of
the Washington Gaslight and the George
town Ghslight companies. at a cost OF
not more than Ss,OOOOoO for the former
and 500, 900 for the latter. Members of the
District Committee, as well as others in
the House, who have considered the idea
cf government ownership pointed out
that the purchase of the two gaslight
Companies would be accomplished with
no more difficulty than the purchase Of
private land for government buildings,
and that the company could be operated
AS easily as the water works Of the Dis
trict are operated by the municipal Of
ficials.
senate May Oppose Bill.
Whether the new bill will pass in the
Senate is doubtful. Senator GaIlinger
yesterday refused to discuss it, on the
ground that he had not had an opportu-
nifty TO study the provisions of the bill
and was not acquainted with the estI-
mated value Oncluding stock of the two
companies.
One member OF the District Committee
asserted that Republicans and Democrats
alike were in favor of the government
ownership OF the District gas works. The
argument of economy and an ensuing re-
duCtion Of gas, is the contention which
il is expected will win the united sup
Port of the District Committee.
Six Millions Not Sufficient.
Statements by prominent stockholders
Of the Washington GasIight Company to
WaEhiup-tpp ct fCh
were 10 the effect that II the govern
ment should desire to purchase the plant
Of the company, Mr.. Rothermers figures
would have to be doubled. There are
10000 shares OF gas stock, quoted yes
terday at SS5 a share. which would make
a total value Of S11.O5OOOO. In addition to
this there is a bond issue of s., 1000 600, the
bonds selling yesterday at 1lO.
1t was also stated that some two or
three ago when an effort was made TO
increase the capitalization of the COM
Pany, a committee Of experts gave testi-
IRONY TO the effect that the physical
valuation Of the plant was S12g72, 900. The
stockholders seen last night claimed that
the plant could not be obtained for less
tkan Sl5,0O0.OOO or S16,OO0.OOO 1t was also
recalled that when an effort was made
Inent of the company, stockholders were
offered $50 a share for their stock and
this figure was refused.
Mr.. RothermeI declined last night to
be quoted as TO the details of his propo-
sltion, but insisted that in his Judgment
the sum Of 100000 would be ample to
cover the cost Of acquiring the plant.
MIR. ROthermers Plan.
According to the RotherneI plan the
Secretary of Commerce and Labor will
act for the government in the acquisition
OF the gas works. The plan of taking
over the two companies, as provided in
the Rcthermel bill. is as follows:
THAT the said gasIight companies shall
within ninety days from and after the
passage of this act furnish the Secretary
Of Commerce and Labor with a full and
complete inventory of Sheir respective
property interests, amount of capitalize
ton, all outstanding Indebtedness and
liability, amount of capital stock issued
and the names Of all the stockholders
as shown by the records and books of
said company, and giving the amount Of
stock owned or held by each stockholder,
respectively, and the said company shall
also furnish TO said Secretary as he NAV
require all maps. profles, contracts. re-
ports of engineers, and other documents.
records, and papers, or copies of any or
all Of the same, TO aid him in carrying
out the purposes Of this act.
ny
That said condemnation proceeding
shall be, in all respects as far as posi-
BILE. held and conducted in accordance
with the provisions of the act Of Con-
gTess approved August 30. 1890. providing
a site for the enlargement of the Gov
ernment Printing Office, which said act
and its provisions are hereby made appli-
cable and available to carry into effect
the uses and purposes of this act.
That in the proceedings to acquire
the said property of the said companies
herein provided for and authorized
the said court in rendering Judgment
under the authority Of section of said
Act shall first deduct from the total val
uation of said property Of the gaslight
companies as ascertained and determined
by said 60urt in said proceedings the full
amount Of the outstanding liabilities and
Indebtedness Of said companies and the
amount remaining after said deduction
has been made by the court as herein
provided shall be taken, held, and enter
ed in said judgment as the just valuation
Of said property Of said companies, here
in authorized to be acquired by the gov
eminent for public use, to be adiudged
and awarded for payment by said court
out Of said appropriation according as
said court may find and determine the
respective rights of ownership of the sew
eral stockholders to be. in and to the
capital stock Of said companies"
Commissioners Take Action.
simultaneously with the introduction of
the Rothermel bill yesterday, the District
Commissioners called upon the Washing
ton Gaslight Company for evidence why
the Income of the corporation during the
last fiscal year had increased, despite the
fact that the price of gas was lowered to
s. cents per loo cubic feet This demand
was in pursuance TO an agreement en-
tered into year ago by the Commission
ers and counsel for the gas company
whereby IL the latter should increase its
profits despite the reduced price OF gas
il should make further reduction at the
CONCLUSION Of the last fiscal year.
The gas company ignored the District.
according to. the statement of the Conn
missioners yesterday, and has as vet
shown no reason for an Increase of 10
per cent in profits during reduction Of
price.
In their letter TO the company tn.
Commissioners cite the fact that during
1910, when the agreement went into eff
feet, the net corporate income was SI51.-
796. During the year 1911, when the S. |
cent gas rate was effective, the net in |
come Of the company was S4s5. .0l059 This. |
the Commissioners point out, calls for |