National Republican., 1883-02-12
THE MINORITY REPORT on THE
q,

| GAS BILL
Mr.. Heilman, from the committee on the
District of Columbia, has submitted the fol-
lowing minority report on the bill to incor-
porato the United States Gas and Fuel COM
pany and for other purposes
We hold that it is bad policy to permit
more than one gas company in the same part
of any city. Experience has demonstrated
that opposition gas companies are not bene-
fetal, but that they are injurious TO the inter
ests of the citizens, aud instead of promoting
cheap gas they prevent and rctard it by
greatly increasing the capital necessary to
carry on the business
The Washington Gaslight company have
to-day capital and plant sufficient to supply
twice the quantity of gas required by the city
| of Washington, and to permit a competing
company to enter in the business would be
simply to increase the capital without in
creasing the business. Why should this be
done when there Is no good reason or public
necessity for it, and when it amounts to u
moral certainty that both companies will
combine? When there are only two parties
20 combine they will not long carry on u
| profitable business, or, in the language of Mr..
George Stephenson, "When combination is
possible, competition is impossible; :" and IL is
| n well known fact that every opposition gas
company started in this country, after a short
| term of competition, have either sold out
bought out combined, or pooled earnings
with the old company. While the brief com
petition lasted of course cheap gas prevailed ;
but when the inevitable combination takes
| place the people are made to pay the expenses
of the war, and on greatly Increased capital.
| IL seems that no law has yet been enacted
| that can prevent such combination, as in the
case of Detroit, Michigan. There the most
| stringent charter was granted, with security
| that the new company should not combine
| with the old one, but they did it. 1t seems
| tIpp tc lot hat pan 40 l.
ual stakeholder buying the stock of the other
| company.
Competing companies have been begun in
the following cities, and soon combined or
were absorbed, towit: New Orleans; Charles
ton, s. c.; Memphis. Tenn; ST. Louis, Mo-;
Chicago Buffalo, N. Y; Detroit, Mich; AL
bany, n. Y; New York city; Providence, Il.
l.. Brooklyn, Jersey City, N. j.; Newburg,
N. Y; Trenton, n j.; Harrisburg, Pa; Lam
caster Pa; Baltimore, Md; and several
others. In all of these cities
gas is sold at higher rate than in Washing
ton city. Upon these and other good grounds
| the authorities of Boston and Cincinnati
have recently refused to permit competing
companies, and the citizens of those cities are
enjoying cheaper gas than in the cities where
competition was allowed.
In truth all opposition gas companies arc
| begun for purposes of stock -jObbing or spocu-
lation, or to dispose of patent rights; and
in this city, congress is asked to grant n
charter to thereby force the old company to
do what they would not do willingly.
A New York newspaper, in speaking of this
proposed new gas company for the city of
Washington, says:
| The new gas company has had one or two news
papers to give sinister winks when 1t was
| bronched, and 1t is limited that IL Is an "airy
| nothing" that would start out with gilt edged
| franchise and big complement of high priced
| officials whose object would he to sell out to the
existing gas company, and that the projectors
would realize something hamdspme out m 10, 0i @ tne
about It, and starts life under grim suspicion Of
being job of the jobbers.
We assert that when one gas company is
able and willing to supply all demands at a
fair price it is not wisdom to permit an un-
necessary increase of capital by allowing an
other party to enter the field, thereby render
ing both capitals improbable by ruinous COM
petition, while the competition lasts, and to
be made up afterward by cxactions on the
people.
We claim that it is not good legislation to
make improbable legitimate business which
is dealing fairly with the people, and our in
vestigations show that the Washington Gas
light company have so dealt by supplying
gas of higher illuminating quality than
is required by law, and sells it cheaper than
any city on the Atlantic coast; for in
stance, % per cent. cheaper than New YORK
city, where they have had opposition gas COM
panies. Gas is now sold in Washington Mt
$1.75 per 900 feet.
We admit that if any existing monopoly be
uncontrolled, either by competition or legis-
lation, there would be grave danger that in
Justice might be done the public by charging
cxorbitant prices for an article ofprime neces-
sity; but happily, in this case no such fear
need exist for by existing laws the Washing
ton Gaslight company is rs absolutely under
control of congress, as far as the prices are
concerned as is the water works Of the city.
If there is city in the country where COM
petition is not needed it is here, where con-
grcss fixes the price and quality and If the
! price is not low enough, congress has only to
say how low it shall be- Congress has eXer-
csed this authority several times, namely
June 80 1861 July IL, 1862; January 80
1865; April 10, 1863; June 23, 1874. These
reductions wers general, to the government
and people alike Since 1874 the company
have made several reductions voluntarily
and instead of useless warfare and loss, why
does not congress exercise this authority
again, and compel the existing companystc
sell theiT gas rs low as it is offered by the pro
posed opposition, and prevent the tearing VI
and DETACHMENT Of your streets? q?
Gas companies, by their nature, cannot
seek business one foot beyond their pipes, and
it appears too plain to admit of argument that
, when congress has established an agreement
; with corporation to grant 1t certain privi
/; | lcges and immunites, and have thereby in
, duced the corporation to invest its means fol
q specific purpose and that too in such 9
shape that the corporation cannot resume it:
capital again for some other purpose, ever
though those immunities be infringeda and these
, privileges contracted; that congress is bount
by every principle of justice and equity tt
nov only refrain from impairing by its OWL
, act, but to prevent any action of another from
| impairing in any degree these original right
Low, re Nyl,i ,inh in
ducement for the corporation to invest III
5 capital especially in this case where congress
has the right to fix a fair price.
D In England competing gas companies ar,
| forbidden by law, and existing companies ar
4 allowed to mako 10 per cent. on their invest
r ment; hence the cities of the British island
| have the cheapest gas in the world. Th
prime cause of this cheap gas is that they hav
5 not excessive capital to earn dividends on
Opposition gas companies have not been Capi
+ talzed on the old ones
Two sets of gas pipes Fl the streets arc
nuisance, and lead to conflict of opinion as L
which set of pipes are leaking; the leak
v therefore go unchecked, endangering tn
y health and comfort of the citizens, or botl
q parties tear up the streets searching for tn
a leaks. When there is but one company ther
:, is no doubt as to who is responsible, and bu
A one excavation is necessary to find one leak
o The laying of gas mains under sidewalk
s should be positively prohibited, for gas goe
q in the direction of the least resistance, and
a pipes are laid under the sidewalks, whel
r leaks take place, the gas soon finds its wa,