Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-03-21

The Washington utilities commission
Vim a letter to one of the citizens as
sociations, gave a broad hint OF inten'
to reduce the price Of gas In the DIS
trict, following the completion OF
physical valuation OF the property,
presumably of the two companies that
manufacture and sell gas in the Dis
trict.
The last reduction in the price OF gas
was made voluntarily by the Washing
ton Gas Company from 80 to 30 cents
net per thousand cubic feet. Since tnat
time the GEORGETOWN Gas Company has
advanced the price Of gas served to Its
customers from IS cents per thousand
cubic feet to 81 per thousand CUBIC
feet.
The claim was made by the latter
corporation that because OF ITS woe
territory and limited NUMBER OF GUS
charges unless they were PAID 81 per
thousand cubic feet.
For some years the shareholders OF
the Washington Gas Company nave
dends on their stock, yet the company
has earned this distribution but once.
the report Of 1918 showing slight
surplus over dividend requirements,
while last years returns showed big
deficit.
Whether dividends can be maintained
with reduced revenues remains TO De
seen, but the chances would appear TO
be against it.
tire city to obtain 75-cent gas year
or two ago, when the two companies
were near the point Of consolidation:
The Washington Gas Company at that
time had an option on the minority
holdings of the Georgetown company.
it having been for some time the own
er tnow in litigation as to legalty) OF
the majority of the stock OF the
Georgetown company.
This option was not exercised for the
reason that approval Of the merger
could not be obained. but high OFF,
cial of the Washington Gas Company
was authority for the statement that
75-cent gas would be offered in the
event of a consolidation.
1t would seem as II a decision in the
suit now pending in District courts. re-
1as rs 90 hold OIL $500 ahares
Georgetown stock might be expected
In the near future.
The court may uphold the contention
of the Washington Gas Company that
in question. it may hold the reverse
and order the distribution of the
shares to the stockholders Of the com-
pany OF it may order the return Of the
1t was purchased. There is yet another
possibility that the stock be ordered
returned to the Georgetown Gas Com
pany and cancelled.
There may be other IFS" but unless
the utilities commission order con-
solidation, 1t Is not at all likely that
there will be one. The two camps are
not especially friendly. In the event Of
Georgetown Gas stock held by the
Washington company the latter would
then assume management. directly or
indirectly, and consolidation might
easily be arranged, but the La Toilette
amendment would seem to stand In the
way.
First Advance in Rates.
The advance in the discount rate for
the regional bank Of Atlanta repre-
sents the first increase in a rate since
the system has been in operation. From
November Is, 1914, until Friday bank
discount rates had been steadily de-
scending. and the application from the
Atlanta bank for an increase came as
a surprise to the federal reserve board.
No explanation Of the reason for the
change accompanied the application,
but it was stated that reports from the
south are to the effect that SO much
commercial paper Is being presented
for discount in order that cash may be
obtained to meet the needs OF the
planting season. now coming on. tnat
an increase in the bank rate has been
necessitated to forestall too heavy q
draft on the resources OF the Atlanta
institution.
Similar applications from the other
regional banks in the south. where the
circumstances attending this years
cotton crop left the planters short OF
money for the planting season, would
not surprise the board.
The Week on the Stock Exchange.
During the last week there was con-
siderable activity on the Washington
stock market, a total Of $53.500 bonds.
changing hands.
and Electric As were clearly the lead
ers, with 81 the general price The
only change In prices for bonds was
X point in Capital Traction IS.
With the exception Of Of an ~ aoiass
and a point gain on Mergenthaler.
there was no change In stock quota
tions.
Seek Change.
One Of the provisions Of the income
tax law is that a business man max
ing gains throagh operations other
than in his own direct line of bust
ness must include the profit in his
income statement for the year. But
what Is ordered one way is not per-
mitted IN the reverse, the same man
losing, IN any little or great venture,
undertaken outside OF his trade can
not be deducted.
This clause has induced the Cham
Der Of Commerce OF the United States
to make a test case on this feature OF
the law. Bankers generally. corpora
tions and others are protesting fore
IDLY against being made to work for
the government without compensation.
They are moving in various ways for
an amendment to the income tax law,
by which information will be given
Of income at the source and not col
service would require considerable
time, but 1t would place on each indi-
vidual recipient OF income the work
of making his own statement OF ex-
emptions and returns and not force
banks to do the collecting and the
volume Of incidental work.
The New York Bond Market.
]. s. Bache & Co. IN its circular for
the week have this to say Of the bond
market:
Tho sale Of bonds for European ac-
count expands and eobs. but on the
whole averages quite a round sum. One
thing that is observable Is that the
old-seasoned issues, in which very lit
tie trading has been done for years In
from Germany, and are selling here at
low prices. mostly on per cent basis.
which Is an exceptionally attractive
income on such choice issues as North
ern Pacific 3s. Central Pacific 4s, Erie
Prior Lien Is, Erie I'd Extended, Mis-
De- AZ a