Savannah morning news. [volume] (Savannah) 1868-1887, 1886-01-10
A ST. LOUIS SENSATION.


The Standard OH COmpany's Alleged
Plan for Securing a Gas Franchise from
the City.
ST. LOUIS, Mo-, Jan. "a great sensa-
ton was created here to-day by the publi-
cation of letter purporting to have been
written by w. G. Warden, OF the Warden
Frew Oil Company, to w. II. Waters, Of
this city, President oc the Waters-Pierce
Oil Company.
The letter outlines plan for traudu-
! lently securing franchise from the city
for the Water Gas Company which is in
reality the STANDARD Oil Company to fur
nish gas to consumers. The franchise
which the old company now operates eX-
pres in 1890, and there has been, appar-
emily, for two years bitter fight between
the new Water Gas Company and the old
company for the franchise. The letter
shows that the object Of the Water Gas
| Company IS TO enter into an alliance with
/ the old monopoly, and, while publicly
fighting Il, secretly whac6 up and keep
! out other competitors. The letter is dated
Philadelphia, Dec. ,, 1884, and it should
/ be stated that Waters is "a heavy stock
holder IN the old monopoly. After short
introduction, it says:
"ln writing / will call your company
! old and ours new NV thought is to
have the two companies make an agree
ment in which the 'Old' snail guarantee
that the profits of the new shall not be
less than 100000 per annum for five years,
and that 1t Will aid and assist the new
to obtain as favorable an ordinance as
possible. The new is to agree not to
enter the old company district for i've
years, and if possible to resist doing so;
also not to push ITS suit against the old
company and to assist to dalavand pro-
| long any decision being reached before
1890. II a decision favorable 10 the new
should be reached, it might be impossible
and unwise for the new to stay out of
| the old company's district; but ia such
/ case the new 10 make "A satisfactory adj
| iustment of whatever business it may be
/ forced to do in the old cOmpany's dis
/ trict.
! "Now | will conGdeutially give you the
! figures | have made up 10 see how this
/ thing would work out, and I don't think
they will prove much out OF the way. |
/ will make them up in two ways, the first
based on our making the foregoing ar
rangement and the second on our going
ahead and securing such an ordinance
as was proposed last winter; also assum-
| ing that the Court OF Appeals Will be sus-
/ tanned by the higher court, and we believe
/ this will be so within two years.
Inc writer then figures up the profits,
the gas to be sold at 81 30 per 1000. The
/ cost is put down at 70 cents and the profit
4 at $500, 900 year.
/ Representatives of both companies have
/ testified before the Municipal Assembly
/ that il was to make gas for less than 81,
/ and We're apparently cutting each others
! throat. This revelation has stirred the
/ whole city, and was published to-day just
! as the Assembly was acting on bills in
/ troduced by each company. The result
was that both companies were frozen out
and a new one is being formed of home
capitalists. The old company charged
/ 81 80 per 1000, and the people have for
! years been robbed by the monopoly. The
/ Standard OIL Company promised to fur
nlsh tie gas for ST 80 right on, if 1t was
allowed to go to wGrk. 1t has II plant
here and is now doing some business.
The letter was signed 'W. q. Warden
and was presented to the Mayor some
weeks ago and caused him to veto the
/ Water Gas bill after it had been passed.
( 1t was then passed over his head, but the
| sensation to-day killed it. Mr.. Waters
| denies that be ever received the letter,
| but Mr. Lakeland, a bank president, and
Mr.. Newman, capitalist say that be
showed it to them.