New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-11-29
FACTS ABOUT GAS STOCKS.
WHY THEY WERE INCREASED a22ooo.ooo
srxAroR JAcoBs's PART IN SECURING FAVORABLE
LEGISLATION.


LEGISLATION.
The search of the Senate Gas Committee for
.ome nersou who had q recollection Of the facts con-
cerpne the consolidation Of the companies ana the
increase OF their capital stock by an addition Vi
s22 100000 to It was parity successfuI yeSIer"9'
Henry Day, q directorin the Consolidated Company
and one Of It's counsel able to throw some hge WI
the subject Before tho committee began 20 examine nun
nj the Firth Avenue Hotel John III. SHERWOOD pf'soe'
Of the GasCOnsuners' Association, was eAahheu GU"
earning the statement made on Friday by MI o'en
aorfer He said in substances
H. ia notorious fact that largo sums OF money are
spent at Albany by the gas comPanISSS " ,hts
cure favorable legislation. do not wi-h AT ms
vsrs.tlon at the KaatersSil o;e on this subject. but
made no such statement that repOcted to Mr. Ottoh
of any person talked with there the subject But
reme mber talking with George g. Land0n Large owner
OF gas stock tho United states HOTEL SaratOga ne
asked mo way anxious for cheaper gis ola n0
organize - company. referred him TO the law Which
any competition with them and told him that II were
not for that law company would be organLe1. a.
Jaudou said that ho unaware of the eNlsteh'e "
That act He further renarGed In the course Of the CON
verration that the legislation had always cost SOM"
thing, aud that the companies eXpecteu " P''
for it -..o,,.,,ov .nent con.
Mr. Sherwood rhe Gas Consumer ASSOCIATION VIII
ali ~ n not thus hat Sl5 5000 to spend
Therefore, you that we couiun 40 hucn ~ "
baDy. , ~.
The examination OF Henry Day was then resumed. lie
sse o.. thej Knickcrboeker Company to the Municipal
In renly to said he had nothing to do Win
the insertion OF o clause IN the act consolidating Tue
statutes relating to this city, which clause praeuealy
forbids the organization OF competing company lie
did not know of the prehmna1es 10 Tue
consolidation OF the gas companies
Odd you counsel for tue gas COMPANIES
have Anything TO with the passage tHo o.
dstion OF manufacturing companies" ana when W,s n
tended authorize the consolidation OF tne gs conpF
nieSt Al had something to 40 Win draluD4i@
Odd you draft i'll Al did. 1000 m e..o.
do whom did you give the Din' A'-Io senator
o~Who IN behalf OF the gas companies had charge OF
the necessary expenses IN explaining that o ~ Albany
10 take charge of 1t and push it, and he said mat ne
"OC"pid you ever hear of q man named 0BrIen having
anything with the passage OF that bhlt No
had knowledge OF any expenditure OF money iTr @
purpose, and 1 paid no attention 10 IL sIter tue oiI
passed into the hands of Senator Jacobs .
Senator Gllbert-It Il understood That IL money was
used you mad nothdg to do with IL ,,,.,
O-On what theory was the value of the so-callcd
franchises deermined In consol atins the companies
Ave considered that, a. the stock OF the COMPANIES
was worth so much, the franchises must De M"rth
great deal Probably the sales OF gas had something 10
Q"on what theory the capital . increased ed
jssied so that per the stockholders would re-
ceivs practically the same divden.s a. before
General Trcman-Ihati - wDere COMPANY Wa i"S
IN 81 per cent div dis the shareholders should nave
81 ner cent dividends ON the investment A
The argument was something OF that kind 49,.
IL the companies charged the people OF New
York enough for gas to pay Il per cent
dividends the people must keep on paying these uiN
drnds only they appear hereafter in the form Of
nor dividends the stock being increased enough
to up the difference. In other wo4ds, the people
had to price Tor gas TINS last year whlcL al
theory Ayes hut the company has earned per
OF the price had been 81 30 per thousand cubic
feet the company could not have paid per cent dlV
dend, couLi 1t A.-NO, SIR.
X l. Cutting, who a director In the
han rcd
concerning the purchase OF that company
KIckerbocker had been capitalized al SSooo,OoV, phl
the expert accountants hid beeu unable 10 ma any
books except The euNtoners' ledgeTs or 10 as
certain that any lnOney had ever oeen pald H.
M one apparently could tell what became
Of the books could remember anything OF
this iran ton involving millions Of dollars MI Cut
ting testified that attorney for Elizabeth Bayard he
advanced about 10000 TO W. A. Stevens as trustee
for the use of the Kuickerbocker Company aud that
bonds wers issued for 1t and he aerward obtained for
The estate 4, $50 shares OF stock and some money.
O.-As a director IN the I'm eserbocker do you
the number shares Of stock Issued and how APP
pointed Al funk not =. =, -,
O-Haye you any Information as director that viii
show what bocno of the $3.50 900 pd TO the knicker-
hacker by the Mutual Al don't remember ABOUT
Mr. Cutting said that he had disposed OF
his interest in the stock of the Consolidated
Compapy. He said that he could not remember
ANY Of the details rs the amount OF money paid stock
tssuel etc. when the Kuckerbocker passed under the
control OF ho Municipal; and the committee gave up
the search for this information aud adjourned until
Tuesday the witness promising in the meantime 10 try
10 refresh his memory.