The Washington times., 1914-03-08

economies of consolidated manage.
nent were going to be aimed first at
hoisting the value of the Georgetown
property to a figure three times as
high as it's present earnings would
indicate. 1t is true that the Wash
irgton company officers promise that
the price of gas west of Eock Greek
that is, throughout the territory
Of the Georgetown company--will be
reduced to SIS cents after the merger
is effected. The price in that ter
ritory is now 81. But this provi-
sion fer S5 cent gas is not written
! into the Legislation. Lawmaking
( being rather an exact business. in
theory At least, it would seem rea-
sonable that such a very important
! provision should be written into the
Law.
But this is not all, as concerns the
price Of gas. The rights that arc
to be granted to the Washington
company are very valuable. The
price that is to be paid the George
town shareholders is very liberal.
Is not the gas-consur7ing public en-
titled to something while these good
things are being passed?
Why rot make sure that the con-
suner will get his slice, by writing
into the measure that in considera-
tion of these rights granted to the
gas concerns, the price of gas shall
| be forthwith reduced, for the whole
city, to rs cents?
1t is 75-ccnt gas that this town
wants, and it cught to be able tn get
gas for yet less than that. But a
present price of rs cents would be a
! step in the right direction. Surely
it ought to be taken in connection
with the passage Of this legislation,
which will at last perfect a single
company's control of the gas situa-
tion here.
President Reeside states that, if
the outstanding Georgetown shares
are bought at sl55, the entire stock
Of the Georgetown company will
then be held by the Washington COM
pany, and will represent an average
cost to it Of sa2. That is certainly
very high price for Congress to
place on a stock which. on the basis
Of its earnings could not possibly be
rated as above $50. 1t may be tkxt
Congress is willing to capitalize in
advance the benefits of consolida-
ton, and to assume that the law it
is passing is going to be worth the
other SAP Of the valuation; but it
will be doubted, by the average con-
sumner of gas at least. whether Con-
gress ought to make so handsome q
present as that without. on the other
side, exacting something in the in
terest of consumers.
The question still remains, how
ever, whether Congress, by declar-
ing that 2.470 shares of the George
town company are worth S155 a
share, will not in legal effect declare
that the entire 5000 shares are
worth that same figure. Mr.. Rec
side is sure this will not be the eff
feet; it can only be said that there
are some excellent legal and civic
authorities who are unable to agree
with him. They suspect that for
Congress to fix a price of Sl55 on
almost half this stock, will fix that
same price on all of it.
AHd they 60 farther than this,
and point out that this value, once
fixed in this way by law of Con-
gress, might and very likely would
be held to override any valuation of
the property subsequently made by
the Public Service Commission; SO
that, if the Public Service Commits |
sion should find a valuation of only
5000, 900, the gas company would be
able to point to the law which held
the property worth S1,455,OOO. This
is certainly a point on which the !
differences should be cleared Cp be-
fore the legislation passes.
The Times favors consolidation
of the two gas companies. 1t be-
lieves that better service and less ad- !
costs would result. 1t =
prefers that there be only a single !
gas company in the city. and that |
it be under strict regulation by the !
Public Utilities Commission. But
it does net want to take any chances
of having the r2gGlative authority
If the commission harnpcrcd from
the start by reason of Congress fix
ing, arbitrarily, nn excessive valua-
tor.
The public interest must not be
lost sight Of in granting conces-
sions TO ;he gar interests. This is
The tine to exact reduction IN the
price Of gas. Certairly, if the re-
dUction is not to he had Tow, no
chances should be taken of making
4 f..