The Washington times., 1914-01-29
WHERE THE PUBLIC
COMES IN.


be directed by law to take over the
two gas companies, consolidate
them, and thereafter operate them
as a municipal utility.
The gas companies, or at any rate
important interests in both of them,
have been anxious to have Congress
authorize them to effect a corporate
consolidation. That would be the
simple way out of a number OF COM
plications that worry the companies,
we imagine, vastly more than they
worry the public.
In order to get a rock-ribbed con-
troll of the gas business in the
town, the Washington Gas Company
acquired control of a great part OF
the stock of the Georgetown COM
pany. That holding is regarded rs
contrary to law, and moreover the
dominating element in the George
town company has declined to pay
dividends on the shares owned by
its bigger rival, on the gr, and, as
commonly understood, that the CON-
mon control violates the antitrust
law. There was recently Legislative
action to end the common owner
ship, but the interests in the COM
panies take the position that legal
consolidation is the desirable step.
Very likely. Like the Commits
sioners of the District, the public
will be in favor of consolidation. No
question abort that.
But it will have to be consolidation
on the public's terms, not on the
terms of people who want to
strengthen a monopoly of the gas
supply of this town.
There is tentative promise that if
consolidation is effected, the price of
gas will be reduced. The Commits
Sioners make clear that they ara not
much attracted by this promise, be-
cause they don't see wherein much
economy is to be effected. Neither
do we; neither will Congress, if it
will take the trouble to look into the
premises. The Washington COM
pany ard the Georgetown company
have from the beginnings heen as
signed to separate and distinct sec
tions of the city. The former oper-
ates east and the latter west of
Rock Creek. In effect, they are not
competing companies at all. There
is no physical paralleling of mains,
no duplicating of plant, nothing wort,
while on which to effect economies
except the overhead costs, and that
would 60 a mighty little way in re-
ducing the price of gas to the town.
In short, the situation presented
is that gas interests want to consoli-
date, and that, naturally, they hold
out to the public the inducement that
maybe there will be enough economy
to justify a reduction in prices. Are
such hesitating and uncertain prom
ises to be taken seriously?
Two or three years ago the gas
monopoly, incident to cutting the
price to S5 cents, made the promise
that for the succeeding year a strict
account would be kept of the effects
of this reduction, and if, at the end
of that year, it were found prac-
ticable for the rate to be further re-
Guced, it would be. That sounded to
the community like a really liberal
proposal; suggested that the public
interest was to be given fair consid-
Grafton.
But what happened? A new crowd
came into control Of the company.
the old promise was forgotten, and
President Letter, shortly after ne be-
came executive of the organization,
assured The Times that there was a
good deal more likely 70 be an in
crease than q decrease of the price
of gas!
Mr.. Letter added that the promise
of possible increase ought never
to have been made, and that the
company could not possibly carry it
out.
Now, II the company was found by
Mr.. Letter, after he took charge, to
be in such shape that it not only
could not possibly reduce rates, but
was more likely to raise them;
And if the company, under the
Letter regime, was thus ready to re-
pudiate such promises as had been
made in this connection;
Then what reason is there to take !
seriously any promises row made, as
TIC price at which to induce the
community to consent to a consoli-
dation that will be wholly in the in
terest of the gas companies?
II is a perfectly safe deduction
from this towns experience with the
gas monopoly, that the only time to
extort a concession from the gas in
terest, is when the gas interest
wants something. That time is right
now. 1t wants to consolidate.