The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1886-04-15
THE GAS QUESTION
TO Come Up Before the Legislative
Council.

The gas question will come up be-
fore the Legislative Council to-day. |
In this connection it is interesting TO
note that the same question ia agl'
tttiDg New York City and that the
gas companies are now being investi-
gated hy the State Legislature. The
New Y rk Herald Of Monday, April
18th, ssys: Gen. Henry f.. Tremalne
has been counsel for two special SEN
ate committees which investigated
these gas companies. He has recently
prepared an important statement OF
the situation in the shape of letter
addressed to the Gas Consumers Asso'
citation. This communication is being
freely circulated here. The following
are extracts:
"Since the last session second Ser
ave committee has supplemented the
expositions of the first committee. All
the transactions OF every gas company
in New York, from the first, in 1873,
to the present time have been ex"
posed 1t is shown that the inordi'
nately excessive earnings have been
comparatively OF late years, ExtOr-
tiopate charges have been continued
only by the help OF secret and illegal
pools, or by charging prices sufficient
TO pay dividends on fiat stock -
stock that represented no capita, but
wa, falsely called capital stock Con
sumers have hitherto believed their
bills extlrtionate, but until this year 8
developments of pools, OF ticticious
stock and of purchased Legislation
they have never been able to prove
the facts. These facts are now laid
bare
"Under the cover Of questionable
enactment, surreptiiiously procured
by an illegal pool of gas companies,
nominaily competitors, sn sexual cap
ital of 1875, 300, watered up to ST.
600, COO, has become a nominal share
capital for the Consolidated Gas Com
pany of $}9,O7S,000. This has been
done under the preteDse that II was
authorized by law. If so, such law
aud lis products should be expunged
Gas consumers are charged prices sui
fcient to pay dividends accordingly
and investors are invited to buy the
ex ra shares of the old stockholders
VINO in turn pocket the money. Over
100000 Of working capital was with
drawn in the process OF consolidation
Not new dollar is actually invested
in the gas Company's business, ant
purchasers for the past year have nee
esssrily had their eyes open to th'
character OF their Investments; ye
those who are unloading their shares
are loud in protesting for thu
protection of the new investors.
,, There are no new investor
in the capital of the company. One
seventh Of the old sto ;kholder5 hsy'
=, unloAded on the specializing public
+, such stock as it would take (sbou
= SIS, 600 OOO), have pocketed the money
: and now use the transaction as
: screen from behind which they ma,
deceive the public. Consumers shoul'
not pay dividends on such stock. Ol
the contrary, the essential fraud in
yolved in the claim for such dividend
:. should result in aunulling the organ
n izatiou perpetrating it aud 90 recon
n struciug the whole businefs as to &c
cure a charge for gas proporliona'e I
a fair cost and profit on its manufat
e ture. II anything more than this
n claimed, the public in it's own deiens
/ should secure the abolition OF tn
company claiming it.