National Republican., 1883-04-25
The GAS MANS GAME.
He Played it on the People Of Baltimore for
Years With Great Profit
Buying Out Many Competitors and
Maintaining a Monopoly
But Company That Meant Business Came In and Cut
tho Price Down 10 81 Per Thousand,
From All OF which the People OF wash
ington May Learn Valuable Lesson.
Speeinl Letter.


BALTIMORE, April 24.--Just now when tho
gas question is exciting so much attention in
Washington, it becomes a matter of more than
ordinary interest to glance at the history of
tho gas question in other cities. Baltimore,
for example, furnishes an illustration of tho
plundering system that has prevailed in all
large cities. 1t is worthy of note in this con-
nection that the first gas company in the
United States was organized in Baltimore,
and that the monumental city was tho first to
enjoy tho benefits of illumination by gas.
The scheme proved a bonanza for the incor-
porators. The par value of the stock was
300, but as the company enjoyed a monopoly,
and the dividends were extraordinary, the
value Of the stock rapidly augmented until
it finally reached about 5000. 1t was all held
by Baltimore capitalists for quarter of
century. About twelve years ago syndicate
of New York capitalists was formed for the
purpose Of obtaining control of the company.
Supplied with ample means their repre-
sentative came to Baltimore and quietly OBJ
tanned possession Of a controlling interest in
the stock of the corporation. Col. Sinclair
assumed the presidency of the reorganized
Baltimore Gas company, and for few years
there was no change in its affairs, an extraor-
dinary price being charged during this time
for the gas supply. The first movement look
ing 10 an opposition from the existing monop-
oily was made about eight years ago, when
the legislature granted q charter to the Peo-
PIES Gas company, upon the representation
of that corporation that the price of gas would
r be reduced. The Peoples company confined
their operations of laying gas mains to the
western section of the city. They, however,
built gasometers and furnished gas for
year or two at a. reduced
price for customers in that district. Their
days were, however, numbered. The old
company watered its stock and speedily alb
sorbed the young opposition, and whatever
benefits had been derived from the Peoples
company were soon recovered from the cor
poration and citizens by the higher prices
charged for gas. At the next session of the
legislature the consumers company obtained
a charter. There were earnest pledges that
there would be no consolidation with the old
company, and the work of digging up the
streets was again begun, and when ready to
supply customers the price of gas was again
reduced. The competition was, however,
short lived. The old company found it again
position, and in due process Of time
to increase the price of gas. But
the war did not end here. Another syn
dicate was formed in New York, and at the
last session of the legislature a charter was
obtained by the Equitable Gaslight company.
This corporation went to work in earnest;
They were supplied with abundant means and
the work of laying gas mains progressed
rapidly. The old company were charging
$1.90 for 1000 feet net, while the Equitable
announced their readiness, as fast as their
mains were laid, to supply customers at 81 for
1000 feet. Thousands of the customers Of the
old company had connections made with the
Equitable, and in order to retain as much of
the custom as possible, the old company
announced reduction of price to consumers
in every section Of the city where the Equit-
able company entered into competition with it.
A few weeks ago, finding tho new corpora
tion, formidable competitor, the old COM
pany, now known as the consolidated, an
nounced general reduction to 81 por 1000
feet. They hold a contract with the city at
the rate of $l.90 per 1,000 which there is now
talk of abrogating, on the ground that the
municipality should not pay more for its sup
ply than private consumers are charged. 1t
is also contended that the city council that
made the contract could not bind future
councils by this act. Whether tho Equitable
will hold out remains to be seen, but pending
any further consolidation the people of Balti-
more are enjoying the benefits OF cheap gas
as the result of tho existing competition.
The belief is expressed in what one sup
posed to be authoritative sources that the
Consolidated company has watered its stock
to such an extent that cannot afford to absorb
the Equitable company, but on the other
hand there have been numerous rumors OF
q consolidation of the two companies. The
officers of both deny absolutely the truth
of any such rumors, and both profess to
be supremely happy, both at the situa-
tion and outlook. The almost general use
of electric lights in the central parts
of the town have had the effect of materially
lessening the corporations gas BILL but for
lighting the outlying districts and public
buildings gas is still used, and this the Equi-
table company proposes to supply at 81 per
thousand. The stock of the Consolidated
company is quoted to-day at 3s1, whereas
that of its predecessor, the Baltimore COM
pany, when 1t enjoyed the monopoly of the
city, has reached as high as 5000. These
figures and the present low rate for gas speak
volumes in favor of legitimate competition.