The Cincinnati daily star. [volume] ([Cincinnati, Ohio]) 1875-1880, 1876-11-28
THE GAS QUESTION.
An Important and Instructive
Report.
Consumers and Company in
Harmony.
What More Than Two Thousand Tax
Payers IndCrSe.
OFFICE oF CITY SOLICITOR.


ON Law and Contracts at meeting held this
day.
"WHEREAs, A communication from the Gin
cinnati Gas-Light and Coke Company, with
an extension of the contract, &C., has been re-
ferred to this Commit ee, with instructions to
report back by ordinance or otherw Sc: and
"WHEREAS, The Commit ee had much difll-
Guilty IN ascertainng the comparative cOsJ Of
manufacturing and furnishing gas IN this city
and other places, which information is highly
important to the proper discharge Of our du-
ties in the premis-s; therefore be it
''Resolyed, That the Cincinnati Gas-Light
and Coke Company be requt sted 10 furnish this
Committee with statistics, or such other in
formation as they may desire in relation to
making and furnishing same as compared with
that OF the principal cities Of the United
States, said information to be communicated
in writing or printing"
very respectfully, E. b. MoLoNEY,
Assistant City Solicitor.
OFFICE OF THE CINCINNATI GAS LIGHT AND
COKE COMPANY, November ~, 1876
Hon. VIM. T. Biddle, Chairman Committee on
Law and Contracts:
SIR: In response to the foregoing resolution,
and for the information OF your Committee ana
other members of Council, having under con-
sideration a renewal OF the contract with this
Company, have the honor to submit the fol-
lowing remarks;
1t is very generally considered by persons
unfamiliar with the subject that great ad-
COMPETITION IN THE SALE OF GAS,
Or by granting privileges to Opposition" Gas
Companies.
No city shoull, Or can afford to- needlessly
Destroy embarrass, or interfere with the sue
cess Of her own local industries, except in
cases of extreme necessity.
From the very nature Of the business, it is
Impossible to maintain, with profit TO the Com
panles or advantage to the consumer, compe-
titiOn i'll the delivery OF gas for the simple
Taa a nj hn pf tn-
livery, superintendence, &C., which is fully
equal TO that of production, must necessarily
decrease the profit and enhance the cost
In nine cases out OF ten, tine term 'OppOs-
tiOn," rs applied to this particular business,
means "blackmaIl." The rights and privileges
are secured by representing that they intend to
furnish gas at q less price han taaC charged by
the old Company, but at the same time they are
extremely careful not to legally commit them
selves to such Il proposition, but nevertheless
succeed in involving the question in such iega.
complications Us TO temporarily deprGciate the
value OF the stock of the old Company, when
theg will either buy it up, discontinue their
operations, and pocket the profits, or induce
the old Company tJ save the deDreciation By
paving them q bonus to Withdraw from the
field. Such was the game practlced by some
New York operators at New Orleans, where,
by false representations and questionable leg-
isation, they defeated the renewal of the char
ter Of the Old Company, and secured to thJm-
selves the rights ana privileges OF the city, thus
utterly destroying the value OF the stock OF the
OLD Company, whose Directors, after trying
every other means in their power to save their
trust interests, co sented TO an arran cement
whereby the stock was doubled, ami the price
of gas increased from ~ 10 to 81 OO per thou
sand.
Another favorite plan Of such operators ap-
pears to be to magnify the profits of such en-
terprise, and thus induce local capitalists to
invest in the stock; retain control of the Or
ganizaton; let to themselves a contract for the
erection OF the works ut pllce largely in eX-
cess of tie cost; pocke. The profits, and leave
Or golnt0 bauKruptcF.
iha works Of the Union Gas Company of
New \ ork City, now III the hands Of a Re- |
,eiver, stand monument to such enterprise.
In other cases where it is not strictly stock |
bbing operation, by representing that tney
intend to enter INTO actuai and active compete |
ion with the old Company they secure the |
privileges, well Knowing that they |
never intend to furnish gas outside of the most |
lensely settled portion of the city, where the |
Julk oil the gas is consumed, and cost of deliy-
,ry proportlonately inexpensive: thus granting
he benefits OF cheaper gas to favored lew.
Jut leaving the great bulk Of the consumers to
)av an increased price to tue old Company to
,nable them to make a still greater reduction
n the contested district.
Such is now the condition Of affairs in De-
roit, whore u bitter warfare is being waged,
the only possible termination of which VIII /
IN increase OF price upon the part of the ,
tronger Company to compensate for losses |
ustaIuCd. such was the case in Memphis,
IAN francisco and several other less promi-
lent places IL
fford to furnish gas to some portions of This |
lily at a less rate than to the thinly settled or |
ess densely populated districts. This dis
however, II INDUCED in by US, |
he city authorities would not tolerate: but |
,rant this privilege to an Opposition" Com !
Jany
l. You want to benefit all citiz+ns a ike, and !
ecure TRUE comp3ttton III tile sale Of gas, |
make it obligatory upon the part of such oppo- i
sltion 10 lay mains THROUGH Ut HE ENT RE
D. STRICT occupied by the old Company before /!
constructing their works. This, and this
llOne, Will insure competition.
there is but one LEGITIMATE competing
jomp any in the United StaLes-the Mutual, VI
New Iork-and While they have never re-
iuced the price of gas below tgat of the other |
Companies through whose districts they run, /
hey have never been able 10 make but Ole
mall dividend.
There are several cities, supplied by more
han one Company, put each OF these Compan-
Ir with them all the disadvantages o, III
reased expenses ana divided responsibilities
This C0mpany-en1oylng as she now does,
The exclusive privilege OF this city--can well
u
much more reasonable price thau they could
Il tuey occupied but half cue territory, or sold
lut half the quantity they now do, and can
.eas IuaLly expect to reduce, from time to
ne, as the consumption Increases.
This principle Is well understood IN Europe,
where their experience is much more varieu
ana extensive than our oNn.
The numerous Gas companies of Paris were,
oy legislatIve enactmenCs, long since cons0li-
Ia cd into one.
In lSlT, there being then two Gas Companies
the City OF Liverpool. third Com
oany applet to Parliament for an act to ena-
lie it to establish II competition with tnem,
when, after Iull inquiry, the Committee o,
Commons, t. whom the bill was referred, came
10 tie wise con, lusIon TO reject it, he un-
tersauiinx that the exsSing Co6p mics
should unite, which thay dld, and that eli y has
since been supplied by but one Company.
Another Committee, appoi tel to inquire in
TO the Operations anl results OF the Metro
Dolis Gas Act OF 3d." adopted exclusion Of
,om petition as Il principle Of leGstat.on on
5he subject aud. Il ter II Ing amt exhaustive
INQUIRY, recommended the amalganatIon of
the several Gas Companies supplying London,
which recommendation has been since acted
npOn, ami stead OF thirteen Companies, as
there were formerly, London is now SUP slled
by one gigantic anlalgAmatad Com any on the