Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1883-04-18
MEMPHIS APPEAL
WEDNESDAY, APRIL IS, 1883.
TIE PROFITS OrIHE GAS MoNoP.


TIE PROFITS OFJHE Gas M0NeP-
Giles.
The war between the makers Of gss and
the CONSUMERS hss been renewed in many of
the leading cilies. The gas mopopolies
called halt in their exactions when i'm
pressed with the belief that Edison'a electric
light was to be formidable rival. But the
allow progres, Of this new illuminant, the
confident belief that it can never success
fully compete with gas, nave caused The
IN onopoiiss to return 10 former extsrtions,
and IN every section of the couairy the gas
consumers are combining to fight the mo-
nopolies which enrich themselves at the
expense OF the people. The following ex-
tract from the New York Times will furnish
some idea of the immense profits OF the gas
makers and the determination Of the people
TO free themselves from further extorlious:
There is but one gas company in Washington
city OF about $50 OOO Inhabitants Since 1854 forty
bills for the establishment Of competing com
Panies have been introduced in Congress, and
every one OF these has been easily beaten through
the potent influence OF the existing monopoly.
The old company was forced, however, by the
FoTty-seyeuth Congress TO make a statement of
profits. II was shown that the original invest
ment was 8 90 600 the company having been or
ganIzed in 1913 In the FIRST twenty years S722 500
paid ia cash dividends, and $500 900 more was
put into the V Orks. Then stock dividend of
500 90 was issued and upon the new capital divi
bends amounting 10 S62j, 600 were distributed in
four years Then the stock was swollen again to
sl5O0OOO, each holder OF two shares getting of
amounting TO s2,40O0O0 were distributed in
four years. In one year, 1876, the divi-
COO which was almost 90 300 per eent,
upon tne original investment. In another year.
1874. the dividend was hfty-hve per cent, or l65
percent; upon the origina! capital Another stock
dlyidend-One new share for three old shares
raised the capital 10 1900 900, and annual divi-
bends OF 100000 or fifteen per cent. were paid
upon that until 1881, and have probably been paid
since that year TIE average annual dividends
previous to 1869 were not unreasonable, but from
that year they were enormous In twelve years
those who had invested s5OJ 900 drew out "a 25 go
IN casn DIVIDENDS and received 81 600 600 in stock.
TINS was about Z shty seven per cent, year upon
the original investment. There wa at the end OF
that time cash balarce OF s650,oO0 held in the
treasury for Contingencies " The original $500
coo mas grown 70 nearly sl0Oo0.uO0 in value of
stock works and dividends plid, aud at last &C
counts the annual dividend was at the rate OF
sixty per cent upon the original capital. The
pany' gas IS VIGOROUSLY bad. The company en-
poys Lobbyists 10 thwat in Congress the efforts of
those who desire TO break down the monopoly |
aud one OF It's agents has for years been an en- |
Ploye Of the House OF Representatives, where he |
has kept membeis In good humor by generous |
of theater tickets bought by the stocSholders
1t has for many years enjoyed "a good thing |
ana II doesnot propose 10 give 1t up Now, if the
profits have been 20 enormous in Washington up
on psor quality of gas, sold at 81 70 thousand
other pauies which Sc gas az 81 81 ihonsahd
feet, have probably received fair intefest npon
their inves ments. OF urse, 1t does not OF ne |
cessiy follow tant true statement OF the earnings
revtala gold niue like thatia Washington. yet 1t
may be sfey assumed that the average citizen II
ne could see and understand the figures in such
a statement would gladly exchange the
Ii.E1gS 5 q gas consumer for the
is for the purpose of reducing the price
OF gas and protecting consumers that an assocla-
city No one who pays gas bills wiil deny that |
there is large and inviting field for the work OF
socn az assoeiauon. The prce Of the gas sold by |
the two London companies has been reduced BY |
~ sa1ds % eitizens 70 seventy snG seventy
to pay dividends OF eleven aud one-haf To thir- |
teen and one quarter per cent, respectively. It is
said that gas can be made at smaller cost here II
TINS pc true the passage OF the bill now pending
at Albany, which requires the companies Of this |
city and Brooklyn to SO good goods at 81 60 a
thousand feet, will impose no hardship upon the
companies. II at the same time something can be
devised that will make meter tell the truth, one
OF the most annoying problems of the ese will |
have been solved
These figures are startling. The Washing
ion City Gas Company has been forced 10
disclose the secrets Of its business, and the
Consumers never knew the extortions to |
which they were subjected until they learned |
the fat dividends OF the company. But it |
will be discovered in the end that much of |
this war on gas monopolies is inspired by
envious and avaricious capitalists anxious to
force themselves into the very moSopolies
which they organize to destroy. In eed, it |
frequently occurs that the organization OF |
new gas companies results in incre ssipg the /
price Of gas, Is the old mouopoliss purchase
msiority of the stock and absorb the new
company, aud the price is increased aud the |
consumers made to psy the expense of buy
ing out the new rival. This thing occurred /
here in Memphis, and is constantly occur
ring in other cities. Such is the policy Of |
all monopolies. Rival wsterEorks, riv al rail-
roads, rival telegraph lines aud rival gas
companies ere frequently started by capital
lists with the sole view of becoming stock
holders in the rich monopolies Whiah pay
fabulous dividends. There is growing de-
terminstion on the part of the people not TO
be forced to enrich capitalists. The Wash
iugton City Gss Company derives about
eighty-seven per cent, a year upon the orig
inal investment. 1t ia not surprising that
the people protest against such extortiop, or
that The monopoly spends so much money TO
influence Congress to prevent tine organlza-
tion OF a new company. The people are |
placed at great disadvantage in their efforts
TO protec; themselves from unjust exactions;
but much has already been accomplished,
and the contest will go on until they are no
longer robbed to enrich capitalists.