New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-06-14
THE GAS CONSOLIDATION
TRYING TO GET A RECEIyEa ApPoEyr,n

| GROUNDS OF An APPLICATION I'd TIE ATTORNEY.
GgNERAL--A HEARING BEFORE HIN.
The gasquestiOn has assumed new phase hv
tho institution OF legal proceedings against the Cos.
soldaed Gas Company to appouta receiver to VIM
up s affairs Tho officers and trustees OF the conoa,S
were Informed late on Saturday nightha tbs Aitorns
General had designated Tuesday Juac 20 as tho d.
and Albany tho place for a Joint hearing The no,,s.
alleged ground for the bring ing OF such suit \.
behalf OF the people thai the Cons Gas Conn,n,
bas charter and tina, its organization 10 lrrsxul.,
fraudulent, void and without authority OF law that tAs
consolidation Of tho gas companies Was unlawful IA
that the company Ia without corporate authority q
carry on Its business"
The application was first made some weeks ago b.
the Gas Consumers Association Of tho s,a,a
Of New-York and voluminous briefs we're FLEA
at that time with tho Attorney General
by the associations counsel is argued in these "a.
pers that tho law OF 1884 under which tie compsns
assumed TO consolidate applied Only TO corporations
organized under general manufacturing mechanical
and mining laws, AMI does not embrace companies or.
gained under Gas Light Statute. Tho law relates
to private corporations only AMI yet provides for con-
demnng private property for private use, AMI there
fore claimed to be Unconstitutional In addition 10 these
loyal points 1t Is asserted that the consol,latlon 10
frauducntly ami uniairy capitslzei nj figure greatly
In the value OF the property aad for the
purpose OF watering the stock II IS charged thas
IN some cases tbs stock issued for the sane
property twice and to two different companies
The application further that tho capital OF tho
consolidation was waercL up TO SjJ.O7s.o)O from
$1,000 900 without increas OF property and THAI
tho aggregate value OF be properties OF tho consei
dalton for the purposes OF conducting egiimatr Dusk
Is actually less than the share capital SlIOOJOOJ
OF the constituent companies AMI not @22OOO coo 10
excess OF that capital.
The asserts that It is the duty OF the A.
General TO subject ths alleged oyercApitsZs
judicial test and dem inds that sI be Instituted
for the purpose Tho applicants say that II cal Dc sab
United jary only at tn suit OF tho people,
application also that accOrin2 70 the policy OF
the State the six constituent companies were designed
be competitors and not partners; and that uness the
consolidation he dissolved ana the companies forced
other wise TO resume their separate bus
legitimate competitors 81 each othcf then hs
consolidation should be broken up and s property sold
by "a receiver
In the Informed circles said last night that
this suit is outgrowth Of spirit " dissatisa lion
among the stockholders with tho results OF the cOso
daton 1t il thought that this ~ only the first 81 series
attempts be made by former managers ol some OF
the old constituent companies to regain control or ther
properties. 4 gentleman prominent IN gas circles and
vol yersed IN the business said last night ~ rKIBUSS
reporter:
1t Is generally conceded that tho consolidation In
the manner which It was consummated was mistake
invited adverse legislation and provoked all the evils
OF unlimited competition at tine when tue companies
had an absolute monopoly. The prDcpal mistake.
basis OF their earning capacity at the exreme
high price for gas II the Consolidated Company SHOULD
DO dissolved re0Tganizei with the cOn:ent OF ts III
rectors tho basis OF Its combined capital OF
Sl7000,00O IL would DO 10 much better condition 70
meet It's business"
Ex-senator Gilbert, chairman or the last Gas COMMIT
tee will be associated with General Tremaine counsel
for the Gas Consumers Association.