The Hocking sentinel. [volume] (Logan, Ohio) 1871-1906, 1886-12-16
THD LOGAN CAB co,
OF History Gath
cred Up Here
and There.

The Logan Gas Light d Cox
Co. was Incorporated in 1885,
with a capital stock Of $50. 900.
The incorporaiors were Oakl,
Case, Lewis Green, ". @. Ad,
ans, l.. J. Burgess and two o
three others.
When the stock books wer,
: open for subscription, about SO,
900 was taken, and there The Ell
terprise stopped.
The company was organized
by the election of w. q. Adams
r President. and Oakly Case, Sec,
/ retary. Shortly after this time
, Mr.. Case was compelled 10 re-
sign on account of i'll health, and
Mr.. Burgess was elected to fill
the vacancy.
Now, following the passage oil
the ordinance granting to the
company the right of the streets
and alleys for the purpose of lay
ing mains, de-, another effort was
made TO raise the requisite
amount of money necessary 10
build the plant, but it was fail
ure.
By this lime the company be-
gan to get great many letters
from different gas companies re-
gardins supplies, DC, and among
the persons who appeared per
sonally with an offer to construct
the works,was W B. McDonough,
of Cincinnati. This visit result
ed in contract between the
company and McDonough and
his associate, Mr.. Riley, also of
Cincinnati,
One provision of this contract
was that McDonough & Co. were
10 subscribe for what stock yet
remained unissued, and that the
persons who had already SUBJ
scribed for stock should not be
required to pay for it, but simply
assign it and all the rights, &C..
granted the company under the
ordinance before mentioned, to
the Cincinnati gentlemen. only
enough stock being held to con-
stitute a local board of directors.
McDonough & Co. were 10 pay
no money for the stocks and
rights assigned them, merely
agreeing 10 construct the works
upon the assignment being made.
Thus it will be seen that $780,
600 in stock had been issued and
not dollar paid for it.
McDonough d Co. completed
the works at their own expense,
there being no assessment made |
on the stockholders for expenses
incident thereto.
The construction of the plant,
including the putting in of some
fifty street lamp posts. cost about
$4,000. Now after the compile
ton Of the works, McDonough d
Go. caring nothing particular for
them, made proposition to re-
turn stocks, rights, &C., at such
figures as would allow them q
reasonable profit on the work
hey had done.
There beng no money to meet
he provisions of the proposition
made, a resolution was passed by
he company. as required by law,
o borrow $4,000. Bonds were
hen issued in this amount and
ecured by mortgage on the plant
md contract with the town, X.
Y. Keynes being the trustee
This mortgage was recorded {
larch goth, 1882. There were
wenty four bonds of $500 each I
ssued and to bear 695 interest,". 6
he bonds were put Oh the mar |
et and sold at par. One provi-
ion of the trust is that the {
1200reeeived from the town on 1
ontract for lighting the streets, C
to be applied to the payment a
t the interest on the bonds and h
lie residue TO go into a sinking t
md looking 10 the redemption n
the bonds at some future day. s.
he amount received now is ST. O
10. d
tie reader has followed close
the transactions that occasion n
the bonded Indebtedness of G
Ie gas company, it will readily IL
! seen why it has never been u
,le to decIare any dividends. v,
Even if but $4,000 of the cap Q
al stockshad been paid in, the g
ntract with the town would have m
id 1919 upon that amount te
1t that is where the evil comes d,
and if the company is to pay if
vidends at an early day, there gs
ust be large increase in busi- a,
IS to pay 625 on $4,000, and nj
Y, 10% dividend on $4,000 of w
3ck.
1t was with a full knowledge th
these things that we insisted Ia
this company being held to re
e strict letter of its contract sb
III the town. With the eS- W,
nses of The company brought OF,
wn 10 the narrowest limit. os
th an eternal experiment on sh