New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-04-30
MORE OBJECTIONS TO TIE GAS BILL

To the Editor Of The Trtoune.
SIR: have noticed the course of The TRIB-
UsE in the matter OF the Gas Consumers BILL" and
have read arguments advanced by both Sides bus
have failed any ausion made TO the very able
argument OF ex-senator Hamilton Harris, before the
Assembly Committee Cities. II presents the defects
of the bin In very strong light and each member Of the
Legislature should carefully consider his action before
placing upon the statute book such hasty and isd-
yised piece Of legislation. hand you herewith tho
salient points OF the argument showing the Improperly
and illegality Of the proposed law;
First The Till proposes special legislation in its most
fragrant FORM It seeks TO regulate Ilt and control the
corporate powers, rights and privileges which certain
gas companies of the city OF Newton obtained by their
incorporation under the general manufacturing law of
the State leaving to all other companies incorporated
under the same general laws the powers. rights and
privileges given by that law. This is Discrimination
against the gas companies mentioned In the DILL "nch
would render the bill imperative It should become
law. II company organized under the general la" mas
in the Judgment the Legislature too many OF too great
privileges, the only proper way TO remedy the eVu
would be by amending the provisions VI the general law
80 that all companies organized under would be treated
alike thus avoiding the odious discrimination attempted
by this bill.
Second The legislation proposed by this bill woudbe
| unconstitutional, for the that 1t would change
the obligations Of the charter under which tho
companies were organized. by taking away from tho
corporators the rights and privileges whiehthey acquired
by Incorporation. The right Of the indvldusn
constituting such corporations to regulate and manage
the internal affairs OF the corporations was secured 10
them by their charter and the laws Of the State wihous
any other restriction than which existed when the
companies were ncor porated. This bill proposes TO 70
strict right, and to deprive the incorporates on
those rights which secured By the law ana the Con-
stitution Of the State.
Third. THIS bill practically takes the power OF man
agement the companies from the tors OF saca
ror sIious by fixing the price and quality OF the art
ice manufactured by limiting the amount OF the divi
dends and giving To the patrons ofth companies al
profits In excess OF such limits and BY ing to com
mission outside OF the corporations supervising powers
over the conduct OF the companies THIS Is an iho'@
ton upon the principles of legislation and certainly
nearer approach TO than any legislation ever
before proposed in State II the Legislature can
the price and quality OF an article Manufactured
priyate corporation and direct mat eorPordu1
shall pay to its customers all profits above certain
amount fixed by the Legislature or commission eaa
As well apply the kind OF legislation to every nha
OF orporation the State, and thus completely eav
lish the communstic principle by legislation.
Fourth The provision OF the bill which proposes W
establish commission with all the parAph,rn OF
city bureau at an expense of $4,000 per year. to 10
paid out OF the City Treasury In the first instance
least for tho purpose OF inspecting the conduct OF INC
companies and ascsrtaining whether they violate 'Ae
law Is one OF tue exrsvagant features OF the VI"
aud legislation. This sum is to be taken out OF '
City Treasury and finally out OF the treasury OF tnese
companies to pay three commissioners Tor seeirS '
the law complied with. and thus relieving the osa"
and municipal officials Of the duty imposed upon them
IL IL is proper to have commission 10 overlook the LAW
agement of gas companies 1t is equally proper TO hs'e
commission appointed TO oversee the management "
every corporation in the State which MANUFACTURES ~"
Giles OF consumption and merchandise
Fifth Another evidence of tho crudeness with winch
this bill drawn that provides that no new oona'
fnFc
These gas companies now owe millions In aIsoun' ~.
bonds coming due These bonds cannot be PAID uu0''
the companies allowed 10 issue new bonds "s me-
can be MO surplus earnings under the proysons "a '
bill. Thus the Legislature. instead OF protceuns %
rights OF investors would by tho passage oil this V
Jeopardize Investments 10 the amount OF niiliio"'
dollars.
Sixth The bill is drawn that. either by mistake "
intention the OF the Consolidated Gas o
pany could not, under its provisions receive aiy Wv"
dends Whatever. IL provides that no dividends SEQ"
paid exceeding per cent per annum estimated Oh wv
cash capital actually paid In" This company n'
strictly speaking. cash capital actually paid IN
was organized under the law OF 1884 authorizing '"'
consolidation OF manufacturing corporations
Its only capital therefore. Is the property rights a
privileges turned over to By the companies WHICH ''
solidated. ..
Again. the Legislature has right to limit the a'
dend OF company to its cash capital Actuai i"'
ments and property ON hand arising from accumu a01
surplus earnings, or otherwise, and forums
part of the capital, should nave 80
same right in tho distribution of tho
sets or dividends as cash capital Investors in the ssA
OF company whose cspitalhas thus been nere"'s1
yond its cash capital have male theft investments "p
that basis OF capital. aud. therefore, have rsn'
dividends upon the full amount OF capital Any nlo'
enee by tho Legislature with that right would 10 49,
impairment q vested right under tho Constitution.
the bill Is crude in form, dangerous In Its tendenci'
| and would be imperative II passed into law. :,
II the objections raised by the ex-senator arc We"
taken. 1t Is not at all wonderful that tho gas comi
nave allowed the bill 70 take the course which II has, ans