Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-08-24
COST OF ITS OPERATION
AND VALUE OF HOLDINGS
Inquiry Regarding Capitalization
and Issue of Certificates.
PRICE OF GAS CONSIDERED
History Given of Legislation Under
Which Company Has Increased
Stock-Authority Dates
Back to 1S48.

y thorough investigation OF the WASH
ington Gas Light Company by the House
District committee is urged in a special
report of a subcommittee headed by Rep
resentatiye IIobeck of Nebraska, hled
with Chairman ben Johnson Of the Dis
trct committee today.
Mr.. Lobeck and his subcommittee on
water, light and telephones made an in
vestigation OF the situation with refer
ence To the gas company. Two bills had
been referred to the subcommittee for
report. each fixing the price of gas III the
District at a. cents per thousand cubic
feet Both bills were introduced by
Representative Madden OF Illinois
The subcommittee recommends the
passage by the House of the following
resolution AMI the consequent investlga-
tion before 1t submits Its final report on
T5-cent gas for the District.
That the committee on the District of
Columbia of hte House of Representatives
or subcommittee thereof is hereby au-
thorized To make an Investigation into the
affairs of the Washington Gas Light
Company. corporation authorized under
and by virtue of acts of Congress and
doing business In the District of Column
bia and 10 report the facts to the House.
tee shall especially inquire into the capi-
talization of said company, including its
stocks. bonds and certificates OF indebted
hess, when and by what authority issued
their volume and value; also its holdings
in other companies, their character and
value: also the extent, character, cost
and value of physical property OF said
company, the cost OF operation. dividends
declared, how and when paid the volume
and quality of gas sold and price collected
therefor. the character of service and all
other matters relating to the business OF
said corporation.
The comnlitteeis authorized to employ
experts. administer oaths, take testimony
send for persons and papers. employ a
stenographer to report its hearings to sit
during the sessions OF Congress or during
recess and TO have the testimony taken
printed.
"Au necessary expenses. to carry out
the provisions of this resolution shall be
paid from the contingent fund of the
House
Substance of the Report.
The committee report states:
This resolution proposes an inquiry
into the affairs of the Washington Gas
Light Company. corporation chartered
by the federal government under act OF
Congress approved Ju.y 8, 1S4S an inquiry
which should be thorough and ex-
during the last thirty years. Unfor-
tunately. much Of the legislation affecting
this company has been attached to ap-
preparation bills. a system VIII ch Con-
gress should terminate In order that econ
orny and good legislation may prevail
Your committee full v agrees with Mr..
MADDEN that investigation should be made
Immediately, and therefore believes that
permanent and lasting benefit wou be
insured to the people OF the District OF
umbia.
The necessity for the passage of this
.e1oiution is sustained by other reasons
.lTaans them being the following:
l. The Washington Gas Light Com
pany. being creature OF Congress, Con.
gress is responsible for its behavior. Ir
order 10 discharge this responsibility Con.
!sress should know all of the facts Incl.
dent to the business of the company, Its
clpitalization, the extent. character ant
alue of its properties, the quality ane
cost OF its service to the public.
=. Such information is not obtainable
from the annual reports of the company
made to Congress.
''3. The act Of 1913 limited the author.
lied capital stock of the company t1
10000, which has since been increased tC
$2.6O0OO0, some of which. IL Is claimed
is without Legislative sanction.
"A. The company has outstanding Ger.
tifcates OF Indebtedness equal TO it's cap.
ital stock, to Wit. sc,60o,OOO. bearing {
per cent interest, all of which, II Is
%. II Is impossible for Congress to de-
termne what il a reasonable charge fol
gas unless Congress shall first know the
value of the plant. the amount actual,
Provisions Of Act Of 1648.
The act of 1s4s contained a provisior
that the capital stock of this corpora
tion shall not exceed $4,000
ssSactioya IN ~ cofd v,rox-f1oa.
And be il further enacted, That moth.
ing in this act contained shall be con
strued to authorize the said Washington
Gas Light Company to make. issue OF
put in circulation any bill, draft. check
order promissory note. change ticket OF
anything else promising or agreeing te
gay money. intended to circulate a
money. or the tendency of which shall bs
To circulate as money or currency; and
she violation OF any one OF the provisions
~ this section shall be q forfeiture ol
the charter herein granted. and a fine OF
$50 against each of the directors voting
for the same approved July s. 1S4s
chapter 6. Stat. l.. ..s72a.)
This act was amended August 2 1852
10y the insertion OF the words three hum
dred and just before the word Atty
TIE same act amended section OF the
original 1s4s statute by Inserting i'm
mediatsly after the word Washington
/, the words and Georgetown The lat
ter amendment did not purport to do any.
thing more than to allow the company
10 do business In Georgetown as well e.
Washington. This left the total author
ized capital stock In the year 1852 at
$3JO.O0O Subsequently. in January. 1855.
Congress passed an Independent act Sec
tion I Of which reads as follows: That
the Washington Gas Light Company be-
and Is hereby. authorized to increase the
capital stock thereof $1JO.OOO.' bringing
the capital stock in 1885 up to $3O0.OOO
subsequently. by act Of Congress ap
proved May "a. 1868, the capital stock was
further Increased 100000. This purported
TO be an act amending the 1S4S statute
By this act the total authorized cap ta
stock Of tine company reached the sum
OF S1GO.OtD in 1896
Subsequently. by an act approved May
- 1872. Congress increased the capita
stock $3U,Vl0 and granted the privilege
10 the company further authorizing ar
increase of 81. .oO0,CO0 as the same might
Continued on Fifth Page.)