The Sun.
London, England, 1859-12-29 00:00:00

PROPOSED AMALGAMATION OF THE

LONDON GAS COXPAYIES.

The details of a plan for the settlement of the
disputes between the metropolitan parishes and
the gas companies by the amalgamation of the 13
companies into one, have been published in a letter
to the Right Hon. Sir George C. Lewis, Bart., by
Mr. T. G. Barlow, the chief points of which
are thus set forth : " That £5,472,320 in
stock of the amalgamated company shall be
distributed amongst the holders of fully paid-up
non-preferential shares in the existing companies,
in proportion to the net profits realised by each
company during the year ending at Midsummer
last, after deducting the dividends paid ;:cn prefe-
rence shares ; interest on bonds, mortgages, or
loans ; reproduction and redemption funds. for the
conversion of all leasehold and copyhold property
into freehold; but, in making such distribution,
the additional profits arising from the sale of com-
mon coal gas by any of the companies within the
limits of the Metropolis Local Management Act,
1855, at rates exceeding 4s. 6d. per 1,000 cubic
feet, and beyond those limits at rates exceeding ss.
per cubic feet, shall not be taken into account ;
and if any dispute or difference should arise be-
tween the companies as to the amount of stock in
the amalgamated company to which they may be
respectively entitled under this condition, the same
shall be referred to arbitration, under the provi-
sions of the Railway Clauses Act, 1845. That the
holders of all partially paid-up shares shall have
the option of paying up the balance due on their
respective shares, and of then receiving stock in the
amalgamated company, on the same basis as
the holders of fully paid-up shares ; but that
in the event of their declining to accept this
option they shall receive stock for the amount
actually paid up on the same basis. That all
preference shares, bonds, debentures, mortgages,
loans, or other obligations of the existing com-
panies shall become charges on the amalgamated
company. That the provisions of the Gasworks
Clauses Act, 1847, shall be incorporated in the act
of the amalgamated company. That the profits to
be divided in any one year amongst the shareholders
of the amalgamated company shall not exceed £6
13s. 4d. per cent. on the ordinary paid-up share
capital. That the reserve fund shall not exceed
one-fortieth part of the nominal capital of the com-
pany. That all new stock which may be issued by
the amalgamated company shall be sold by auction,
and if sold at a premium the premium shall not be
considered as part of the capital of the company
entitled to dividend. That the maximum price for
cannel coal gas supplied by the amalgamated com-
pany within the limits of the Metropolis Local
Management Act, 1855, shall be 6s. per 1,000 cubic
feet, except in the City of London and the liberties
thereof, and in those parts of the diftriets of Lime-
house, Mile-end Old-town, Poplar, and Whitechapel,
which are now supplied with gas by the Commer-
cial Company, where the maximum price shall be
4s. per 1,000 cubic feet, with a rent for the hire of
meters equal to 121 per cent. on their cost ; and that
the maximum price for cannel coal gas supplied
by the company beyond the limits of the before-
mentioned act shall be 6s. Bd., and for common
coal gas ss. per 1,000 cubic feet. That, unless pre-
vented by frost, unusual deficiency of coals, or other
unavoidable cause or accident, or during necessary
repairs occasioned by such accident, the minimum
illuminating power of all cannel coal gas supplied
by the company shall be such that a burner consum-
ing three cubic feet of gas per hour shall give a light
equal to 12 sperm candles, each candle burning 120
grains per hour ; and the illuminating power of all
common coal gas shall be such that a burster consum-
ing five cubic feet of gas per hour shall give the
same light. That the Amalgamated Company shall
be managed by a chairman and 28 directors, to be
elected] the shareholders from amongst the direc-
tors of the existing companies, and by seven direc-
tors to be named by the Metropolitan Board of
Works. That one or more eminent chemists, to be
named by the Board of Trade, shall be appointed to
test the quality and purity of the gas supplied by
the company, and to report thereon every month.
That one or more auditors, to be named by the
Board of Trade, shall be appointed to audit the half-
yearly accounts of the company, and that copies of
the accounts so audited shall be lodged with the
clerks of the peace of the counties of Middlesex, Sur-
rey, and Kent. That the company shall be bound to
supply gas to all public street lamps which may be
erected by any of the district boards or vestries, at
distances not exceeding 75 consecutive yards from
each other, at the lowest price charged for gas to any
private consumer within the district. That, upon
the application of the owner or occupier of any
building or premises situated within 15 yards of
any main belonging to the company, the company
shall supply gas as may be required to such build-
ing or premises, and that although the former te-
nant may be in arrear for gas supplied ; but the
company may, if they think fit, require a reason-
able sum to be deposited with them as security, and
if any dispute shall arise as to the reasonableness of
the security required, it shall be heard and deter-
mined by a justice. That, so long as the charge for
cannel coal gas supplied by the company within the
limits of the Metropolis Local Management Act,
1855, shall exceed ss. 8d per 1,000 cubic feet, and 4s.
3d. per 1,000 cubic feet for common coal gas the
company shall not be authorised to divide more than
5 per cent. on their ordinary paid-up share capital,
nor more than 6 per cent, when the prices shall
have been reduced to the above rates, but that they
shall be permitted to divide £6 13s. 4d. per cent.
when the prices shall be reduced to ss. 4d. per 1,000
cubic feet of cannel coal gas, and 4s. per 1,000 cubic
feet of common coal gas, within the districts where
the present charges are 6s. and 4s. 6d. respec-
tively. That within three years of the passing of
an act for carrying these arrangements into
effect the manufacture of gas shall be discon-
tinued at the Westminster, Brick-lane, and Cur-
tain-road works of the Chartered Gas Company.
That power shall be granted to the Amalgamated
Company for the erection of a new western gas
manufacturing station on Old Oak-common, or the
vicinity thereof; for inch asing the Victoria Dock
Gasworks ; and for establishing telegraphic com-
munication by wires between the several stations
of the company and a central office. That any
salaried officer orservaist of the existing companies
whose engagement is otherwise than by the week,
and whose services may not be required under the
new distribution of districts, shall be entitled to a
retiring pension for life equal in amount to two-
thirds of his present salary."
In further explanation of the conditions on which
it is proposed that the amalgamation shall take
place, it is stated that the amount of fully paid-up
non-preferential share capital of the existing com-
panies is £3,648,215, and as the amalgamated stock
on which the dividends would afterwards have to
be paid would be £5,472,320, the proposed maxi-
mum dividend of £6 134. 4d. per cent. would be
equal to 10 per cent. on the existing capital of the
companies; and as the present average dividends
amount to about 7:1- per cent. on that capital, the
proposed maximum would he 2,1 per cent. higher
than the existing profits. As 10 per cent. is the
maximum dividend allowed by Parliament in all
the recent acts for the establishment of gas com-
panies, neither the shareholders nor the gas con-
sumers can grumble at the rate of dividend pro-
posed ; and that dividend, it will be seen, is not to
he shared until the price of gas has been consider-
ably reduced ; all subsequent increase of profits be-
ing devoted to the diminution of price.
It is observed by Mr. Harlow that gasworks,
from their very nature, must be monopolies, and
the great economical question for consideration is,
whether the public can be better served by one
well-regulated and properly controlled body, than
by 13 separate and independent bodies, each having
a distinct administration and staff, and uncontrolled
by any check on the part of the public except the
delusive one of being open to short-lived competi-
tion, the certain end of which would be combination.

In the proposed amalgamation the interests of the
gas consumers, as well as those of the gas com-
panies, appear to be consulted; and as Mr. Harlow
is known to possess the confidence of the latter,
whilst he has been called on by the principal organ
of the delegates from the parishes to suggest a plan
for the arrangement of the gas supply of the metro-
polis, it may be hoped that both parties will agree to
the proposed settlement of their differences.

A CHRISTMAS lloAx.—The lovers of the turf were
agreeably surprised on Monday morning at seeing an adver-
tisement in the Guardian of a "novel and exciting steeple-
chase," to take place that day, on the Old Trafford course.
The bill of fare comprised a race "between Mr. Bell's per-
forming elephant, and a West Australian goat, six fences,
distance one mile, for a wager of £100," and sundry other
races of a less interesting character. This very novel an-
nouncement caused considerable interest amongst the sport-
ing fraternity, the ornniblises carried down goodly numbers
to see the strange sight, • while cabs, drags, and other'
vehicles were also called into requisition, and the road
assumed quite an animated. appearance —so many were there
anxious to see the fun. Considerable curiosity was
cx-
. pressed as to how the " unwieldy brute" would take the
'ences, and whether the goat would have a rider. The
matter, however, was not long in doubt, for as each vehicle
taut down its load at the entrance to the course, and as the
pedestrians arrivseetbtlhedeytkweerre, were withgarnedetebdadein very abry earnest
dgreisnt
by the rustics as
gcahinn..stil,m-ahse tbheeerf. the, an
it,
einnkeepersre an
anxious
ihad
s
laidterm isntao hstooca,mk"ofa
to get up
t was got up"
n"egxot extra
prac-
tised this hoax upon the people, or whether
a merry party together to enjoy and
,so
tthkeoilookveerrss
of the turf, we are unable
had
warm reception had
by some anti -racing men to
ground —ianchester
ttootdeitdhee; gilibutliwbihliotTevoefr
on the •
they presented themselves
were they would have a very
Guardian.