Savannah morning news. [volume] (Savannah) 1868-1887, 1882-01-11
Oompe,itIon In the pellverr or aas.


Editor Morning Neaos; In your paper Of
to-day we have read with interest a notice
to local investors, inviting them to take
shares In the Mutual Gas Company, and
stating that only small portion Of the
amount intended for our citizens remains
open, land unless called for at once will be
placed to foreign applicants"
From this advertisement, we infer that
the stock Of the proposed company is ex-
pected to be very valuable, and that those
who wish to secure shares must subscribe
without delay.
As citizens of Savannah it may be prudent
| for us to look very carefully into the ques-
ton now presented, not only as subscribers
| but as resident gas consumers.
Theory and experience conclusively show
that the public interests are best subserved
by adopting as principle unity, and not com
petition, in the manufacture and delivery OF
@as In support of this principle we give eX
tracts from the articles recently published in
the Cincinnati papers, where the bad conse-
quences that flow from competing gas COM
panles are fully set forth-bad for the con-
sumers and bad for those who have invest
ed in the stocks Of opposition companies,
viz:
"From the very nature of the business II
is impossible TO maintsin-with profit to the
producers. OF advantage to the consumers
competition in the delivery Of either water
or gas.
"In either case there is certain territory
comprising a certain number of consumers,
II you would agree to supply at a mere
nominal cost-even less than that Of pro-
duction-there would be but few additions
to present list of patrons.
"COmpeting telegraph lines, by reducing
rates, induce many who would otherwise
write letters to send kilograms. Competi-
ton between carrying companies, by reduc-
ing rates, induce many 20 ride who would
otherwise walk, or induce Others to travel
to distant points, who would not under
other circumstances leave home.
"But the Introduction OF another gas
company, with an sdditior al set of works,
mains, and apparatus, would not add one
foot to the consumption, or one dollar to
the income.
George Stephenson, the first builder OF
railroads, said-and the saying has been SO
often quoted, that it may now be considered
an axiom in political economY-'hat when
| combination is possible, competition is i'm
possible
"While the demoralizing and destructive
| effects of even railroad competition are gen
orally admitted, they bear no comparison to
the unfevorable results which follow com
| petition in the delivery Of gas.'
ITO some persons no facts can be pre-
| sented or arguments made, which will prove
| satisfactory ; but to the business or think
ing men OF the community, It is a self
| evident proposition that to obtain a maxi
mum standard of excellency IN any under
| taking, the capital invested therein must be
reasonably remunerative, otherwise either
| the character of the service will depreciate
| or the capital invested therein will be with
| drawn and the business cease to exist. But
| in the case Of gas companies, their capital
cannot be withdrawn, plant curtailed or
| expenses materially reduced. The inevita-
bic result mast follow-if the weaker can
| not be crushed out OF existence, an under
| standing will be had, territory be divided,
and prices be increased to compensate for
former losses, and to pay dividends on
I their duplicated capital"
"Ihere is not to-day IN this country, and,
so Tar as am Glodre, IN the 0hole l00Tld, sin
gle legitimate competing gas company, and by
legitimate | mean a company that is con
Quoting its business on business priL ciples
and earning a dividend on the capital in
vested. There are, l believe, but two
cases in the United States-none in Europe
where companies are still at war, hoping
to crush their competitors, or influence ia
vorable terms of settlement-but in neither
OF these cases are the new companies earn
ing dividends, or even paying the interest
on their bonded Indebtedness. If any ad-
vantages could possibly accrue from the in
PRODUCTION of another company, having its
own or a separate district, it would appear
to be only that the citizens and city might
have the pleasure of dealing with t,Co So
called monOpolies instead of one, and Of
paying prices that would insure reasonable
dividends on double the necessary capital,
coupled with the increased expenses and
annoyance of a duplication Of works, mains,
offices and management"
Five years ago. the city of Boston ap
pointed a Commission, consisting OF Hon.
Chas. L. Choate, John Felt Osgood and
| Edward s. Wood, gentlemen eminent Ia
their profession, and possessing the conf
dence and respect of the entire community.
The sum of five thousand IS COO dollars
was appropriated 10 defray the expenses in
cident to such an examination, and official
instructions were given to report-with
other pOints-upon the subject of cOnpetj-
ton.
"This chapter is so pertinent to the sub
iect under consideration that it is here sub
mitted;
COMPETITION.
"In regard to the admission of another
gas company into Boston to compete with
the Boston Gsslight Company, we are
uImil u INC OpluiOu Ludb ~ SuCu CCul pGll-
ton should be permitted, unless
and managed by the city Of
Boston Itself; and this opinion has been
formed from a study OF numerous cases of
unsuccessful competition in supplying gas
to cities in both the United States and
Europe. By unsuccessful we mean that
the competition has not succeeded in per
manentlY lowering the price Of gas to the
citizens.
cit has Invariably resulted in compro-
mise as to price or district, except In the
case Of Detroit, where the battle is sill
raging. This place IS now no exception to
| the general rule.
"In San Francisco, a competing company
was allowed hy the city AUTH rifles to lay
gas mains In the streets under a written
agreement that 1t should not sell out to the
old company: but after a short season OF
cheap gas, the new company was absorbed
by the old one, under a change Of name,
and We now find the citizens paying ad-
vauced rates, and seeking redress IN the
Legislature, where an act has been passed
recently authorizing the Supervisors of the
city of San Francisco to fix the price and
quality of gas at rates not exceeding three
dollars and fifty cents per one thousand
cubic feet for gas not less than fifteen
candle power"
Many OJueT INSTANCES eau D6 given Illus
trstive Of the saying-that "when cOnlbt1td
ton is possible, competition is impossible, but
the examples offered must suffice for the
present.
1t is not likely that the history OF a COM
peting gas company in Savannah will be
materially different from that Of like com
panies in San Francisco, Detroit, Boston,
New York, Washington City and all other
places where an attempt has been made to
establish one, Wis 1t must follow, If the
weaker cannot be crushed out of existence,
an understanding will be had, territory be
divided, and prices be increased to compen-
safe for former losses, and to pay dividends
on their duplicated capital.
A LOCKER On.
Josh Billings Heard From.
NEWPORT, r. l., August II, 1880.
Dear BitterS: am here trying to breathe
in all the salt air Of the ocean, and having
been a sufferer for more than a year with
refractory liver l was induced to mix Hop
III h. 10 avl1 how md