Evening star., 1920-02-02
WILL SUBMIT PLEA
AGAINST REDUCING
GAS PRICE APRIL |
Washington Company's Pur-
pose Indicated in Annual Re-
port of President Reside.

port of President Reside.
The Washington Gas Light Company
within the next six weeks will ask the
Public Utilities Commission not to re-
duce the price of gas on April 1.
This fact was revealed in the annuai
report of Howard S. Reeside. president
of the company, submitted to the stock =
holders at their annual meeting at the
company's offices today. On April 1 the
present rate of 95 cents per thousand
cubic feet expires.
At that time. Mr.. Resides repor,
states, the company will again make
application for a continuation of the 95-
cent rate, or an increased rate II the
prices for labor, coal and Oil justify
such an increase"
The present board of directors was
reelected for another term. They are
Howard S. Reeside. Ord Preston. Guy r
Whiting, Joseph Letter. James M Green,
Daniel Fraser and John d. McIlhenny.
These directors will meet next week to
elect officers for the year.
Mr.. Resides report shows that the
use of gas has increased to point
where the company must consider en-
larging it's manufacturing equipment in
order to meet the needs of the COM
munity in the future.
The report intimates that Analostan
Island, opposit Georgetown. may be the
site of new gas plant. Presidens
Reside indicated in his report tina,
the company is undecided, however
whether to erect a water gas or a coa'
gas plant.
The sale of gas, Mr.. Reside told the
stockholders, has increased 60 per cent
in the last five years.
'"The expectancy of falling off in the
population of the capital. the war be-
ing over. and a consequent falling of
in the demands for gas, has not been
realized" the report continues. "On the
lily increased. During the past year the
plants have been working at their full
capacity. especially in the winter
months, and every precaution has been
taken by the management to meet this
increased demand for gas: large
amounts of money have been spent on
the works to have them in thorough re-
pair. and increased gas manufacturing
apparatus has been installed. That We
have been able to meet without diff
Guilty the heavy strain put on the works
has been gratifying to your directors.
Duty Confronting Company.
"It is the plain duty now confront
ing the company to prepare to meet the
demand for gas consumption that will
be made on it in the near future. One
thing which the company must do with
out delay is to increase its holder capa-
city. The present capacity is entirely
inadequate for the largely increased
business of the company. and We hope
by the end of 1920 to have a new holder
of large capacity ready for use
The next step will be to provide
plans for additional manufacturing ca
pacity, either of water, gas or coal gas,
and this is such an important and far
reaching step that our engineers have
been studying the question for some
months.
In water gas manufacture the
principal item of expense. outside of
labor, is for anthracite coal, costing
in the neighborhood of SO a ton. and
100000 gallons of gas oil required
annually for our present output. The
uncertainty and erratic prices of gas
oil is a matter that must be given our
careful consideration.
"Unquestionably there is going to
be a shortage of gas Oil. unless there
are discoveries of new fields, and the
oil industry of today is now engaged
in diverting their refining of gas oil
into other channels that will bring to
it higher prices. such as motor fuel
and gasoline.
"On the other hand. the erection Nof
a coal gas plant requires a large
amount Of capital. The operation of
a plant of this character depends
largely upon it's sale of by-productS
of coke. tar and ammonia. Markets
must be developed for these by
products if coal gas plant is to be
erected
Some years ago the company pur-
chased Analostan Island for the ulti-
mate purpose of erecting a coal gas
plant. The site is ideal. the best pos
sible location and about the only one
with water facilities and railroads
near 1t comprises about eighty acres
of land
Approves Merger Proposal.
In the report Mr.. Reeside expressed
approval of the legislation sent to
Congress few weeks ago by the
Commissioners to make possible
merger of utilities in the District do
ing the same kind of business. This
would permit a consolidation of the
Washington and Georgetown gas light
companies. Referring to the Commits
sioners' bill, Mr.. Reeside states:
Recently the Commissioners of the
District recommended to Congress
legislation which, if enacted. will be
very helpful to your various COM
panieS. 1t will allow a consolidation
of the Georgetown and Washington
companies. and also an increase of
capital stock up to the value of the
various properties to be consolidated.
1t will also allow for capital expendi-
lures and for further increases of
capital stock with which to meet
increasing the bonded debt and decreas-
ing the equity in the value of the
property belonging to the sharehold-
ers. 1t allows the shareholder to par
pansion of his property to meet the
needs and demands of the public"
The report states that during the
year the company bought the toluol
plant that was erected by the govern
ment at the east station of the gas
company.
Mr. Reside told the stockholders that
the company has impressed upon the
utilities commission the fact that the
cents per thousand cubic feet of gas
set aside for maintenance and amorti-
zation is not sufficient to take care of
the company's needs. The fact that
the amortization account shows a
debit balance is more than a justifica-
ton of the company's claim in this re-
spect, the report sets forth.
The total operating revenues of the
company for the calendar year 1919
amounted to $3,759, 9,O7S.63. an increase
of S323,351.47. The total outside rev.
enue was S314.237.65, a decrease of
S51I75.01 from 1918.
The total operating expenses for
1919 were S2.9S6.463.21, an increase of
s2O5,SS5 40, and the outside operations
showed a decrease in expense amount
ing to s74,96
The total net revenue was sS1S,-
732.09. an increase of $I41,23427 for
the wear over 1918. After deducting
Increased taxes and other expenses
and adding miscellaneous income we
have gross corporate income of
S649,43511, an increase over 1908 of
s1146S7.54. The net corporate income
applicable to dividends, after deduct
ing the bond interest. was 1926, ,663 "a =
The dividend paid was s46S-00O. show
ing a deficit for the year of s141,-
1866.