New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-02-28
ENORMOUS GAS PROFITS.
GREAT GROWTH OF STOCK AND EARNINGS.

| GREAT GROWTH OF STOCK AND EARNlNGo.
| STATISTICS GIVEN TO THE INVESTIGATING COMMIT
TEE-DLLs HIGHER.
The Senate Committee investigating the methods OF
the gas companies Of this city continued its sessions at
the Morton House. at Fourieenth-st and Broadway,
yesterday General Roome. OF the Manhattan Com
pany, was recalled and said
The best burning quality of gas is about ~ or iy
candle power. At q higher quality than this 1t Will
smoke at the burner In cold weather the vapor IRON
the water in the holder will eondense III the mains ana
pipes. and then freeze, choking the gas.
Mr. Anderson. counsel for the gas companies, read
extracts from the reports of the chief engineer OF the
Manhattan Company for ten years. The principal items
are follows
1s74-quantity Of gas made, 3775oo, 900 c% %@o
feet cost OF gas at outlet of holder, 81 70 per LOCO
feet average candle power, 1882. 1S7S-repairs,
s163, 6O2 40; gas made 1902 sos, 900 feet aver
age Illuminating power IVA candles; cost of gas
cents per ooC ges t,S
Illuminating power. H. 10 candles cost Of gas 1915
cents per loo cubic feet 1so0-repairs. 437;
gss %4 CUBIC of eenas
1000 cubic feet. lSs2-repairs, $61 1872 gas made,
1916, 172 900 cubic feet Illuminating power 1922
candle power of gas 70.5S cents per 900 cubic
feet. 1SS3-repairs, etc. Sl62OZ2; gas maze,
13S5.645; Illuminating powell 1913 candles cost
Of gas aoN cents Pef 1Po saUG iSis
SIPS 100; gas made. 1,122S4S,OOO cubic feet
Illuminating power 10 "a candles cost OF gas, O6.74
cents per 1000 cubic feet
General Tremain asked that the trial balance sheets
of the company for the last years be placed in evil
dence James w Smith secretary of the Manhattan
Company Mt the time of consolidation. submitted to
the committee an abstract of the receipts and ex-
penditures of the Manhattan Compa for the previous
ten years These were not read General Treman OBJ
ected that this not what was deemed necessary,
nor what the witness subpGnaed to bring.
Mr. Anderson. looking at General Tremain-This
prosecution to be fishing for information without
knowing just what 1t wants
General Tremain-I object to this as untrue.
Mr.. Anderson-It is true and can prove 1t.
John H. Sherwood-So far "a am concerned, the AL
legation is untrue This same observation was directed
at me once twice before and was equally untrue.
After recess. John p Kennedy, president of the
Mutual Company the time of consolidation called
to testify. lie said:
The Mutual Company made no annual report. 1t re-
ceved monthly reports from the engineer The cost of
gas for the years from 1874 10 1884 inclusive was
rs follows: 1874, 81 Oh per 1000 cubic feet 1879,
81 03; 1876, 30 cents; 1871 81 cents iS59' 90
cents; 1879. % cents; 1880. % cents; 1881, ~
cents 1882, 81 cents; 1888, 80 cents 1854, 46
cents This represents the cost of gas, including
material and labor but not the cost OF distributing,
salaries ana taxes From twenty eight to thirty
candle power he furnished to the best advantage
and without generating smoke
General Roome laughed at this assertion and de-
clared that gas OF 10 candle-pow would smoke.
In.
ducng gas has been reduced 30 per cent, while the
price TO consumers has been only reduced ~ Per
cent. The net earnings OF the Mutual Company for
the last thirteen years. since its organization have been
81 756.627 81. of this amount SS,32o,OOO have
been paid out in dividends; S9S66s2 30 To construc
tion account and s32ii,944 ~ IN the payment oil IN
terest bonds. gas stocks and cash on hand. The
capital stock was s25O0.O0O 1t was issued to con
tractors constr action The cost OF construction
was So lS6.1l7 real estate. SSo25OO.
Charles G.. Francklyn. president of the Municipal
Company at the time of the consolidation. and
director of the new company, called TO the stand,
and was asked BY General Tremain il he thought that
gas could be- furnished to consumers for 81 10 per
/ 900 cubic feet lie replied that he did not think
lie added:
Considering the risk that capital has to take, do not
think that gas could be manufactured at prott tor
the figure named. For the hrst five years after the
Municipal Company was formed II received ~ % per
l. 900 feet During that time 1t paid no dividends.
The company organized in 1874 and began build
ing works in that year Ii supplied gas the following
year Its original capital was SoOO,OOO. This was
Increased successiyey until in 1880 the capital was
SO 900 900 There also 100000 in bonds
issued There are now outstanding S29l 900 in
bonds. The company has made no annual reports.
There reports except the engineers monthly
ones. II,
General Treman-ls there not paper showing the
financial condition of the company in 1884,
Mr. Francklyn-I made a report at q meeting OF the
stockholders, based on notes and the engineers
monthly returns, showing the condition of the COM
pany. I have no objection TO produce these. IN"
dividends maid by the company follows: In
Is7o, 8 per cent, on 81 500. 900; in 1850,
50 600 600 10 per cent in 1881, on 81. $40, 500,
20 per cent in 1882 $3,OO0.OO0 20 per cent in
1853 on SO O00, OOO 20 per cent. In 1854 up TO
October when the consolidation took place, Is per
cent on 50 900 900. Alter that surplus, amounting
10 28io per cent divided The company was
formed under the general law. My best recollection is
that 900 shares of stock given for patents real
estate etc. This was equal to SSOO.OOO ut par The
increase stock each sold at par and some OF
il at 20 per cent above for cash. This was used in ex-
tending the works and plant of the company. The
stock of the Knickerbocs er Company was purchased
for 500 900 and assumed mortgage OF ri .2OO.-
600 The mains of our company are laid from Grand
4 to Seventy ninthst, on the business streets and
avenues. 49, -, ~,
tion Will il cheaper gas to the consumer
Mr. FrancklynI think it will be cheaper than before
consolidation because some OF the works VIII prob
ably be- closed The Manhattan Company has already
closed part OF its works.
senator Thomas-Are you certain that the price of
Gas has been reduced to consumers There very
many eoml aints that the reduction in price is only
nominal. . -, IN,
Senator GbLs-I can vouch for tho fact that my bills
have been higher since consolidation aud we do not
burn more gas. -,
MIR Franckyn-I am certain that the price of gas has
been reduced Our gross receipts "a per cent less
than they last year. Consequently there can DO
no foundation for the assertion that greater charges
are made In on account OF the consonda-
top the bills were made out later than usual and forty
DAYS were charged for instead OF month. ms may
have given rise to the assertion that bills we're in some
cases ipher than before the reduction was made.
John byrns aud Frederick Erhardt, State Gas In
.nectors described how meters were tested They said
that by far the largest number of complaints from con-
| sumers were IN the months of November, December.
| january February and March. The committee Will
| nj ada n a..