The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1888-04-06
The City's Gas stock.

The city in its corporate capacity owns
100 shares of stock in the Portland Gas
Light Company. On this stock for many
years back the city has received annually
regular dividends of ten per cent and on
two occasions large sums as special diy
dends. 1t is now proposed that the city dis
pose of this stock and use the proceeds for
the liquidation of the floating debt The
matter was brought up in the Mayors mes
sage, and since the city council has passed
an order directing an inquiry to be made to
ascertain the value of this stock. We do not
understand that the council has voted to sell
the stock or has expressed any option as to
the ACCESSIBILITY of its sale. That question
is to be settled later
There can be no objection to an inquiry such
as the council proposes, leaving the ques-
ton of sale entirely for future decision. In
deed we are inclined to think that it is wise
move. and that If conducted in the proper
manner it will throw light on the condition
of this company which will be of great aid in
determining what the city should do with its
stock. But mere inquiry of this prominent
citizen or that prominent citizen what he
considers the value Of the stock will not be
sufficient. From such an investigation as
that we snail get simply lot of guesses, for
there is no gas stock in the market and it is
very rarely that a share is sold. The true
way to get at the value of this stock is to ex
anime the books of the company. and ascer-
tain precisely what its condition is. If the
company has large surplus, as is suspected,
that fact would have very material bearing
on the value of its stock. If its real estate is
very valuable for other purposes than those
for which it is now used and could be dis
posed OF for large sum that fact would
have bearing on the questo whether the
city should hurry to sell its stock lest its in
vestment should be lost by a. supplantng
of gas lighting by electrici These are
matters which can be found only by
thorough investigation of the seompany's
books, and the ascertainmen OF its exact
assets and their value. When these things
are known there will be no great difficulty in
figuring up what gas stock is worth and
what the city ought to get for IFS shares.
What objection can there be to such an in
yestigation? The city-or the people of
Portland in their corporate capacity-own a
large interest in a corporation. Confessedly
their knowledge of the condition of that cor
poration, and consequently Of the value of
their stock in it, is very meagre They are
asked to sell this stock. Isn't it rational for
them to ascertain before doing so or deciding
TO do so, what the value of the stock is?
And isn't it proper for them to avail them
selves Of the only certain way in which this
information can be obtained? There can, it
seems to u.s. be but one answer to these prop
osltions, and that in the affirmative. The
city council is acting for the interests of the
whole people, and it is its duty to take
every precaution that those interests are not
sacrificed. One of the precautions in this
case, indeed the only one which will be of
much avail, is the ascertainment by the
method we have suggested of the value of
this stock. Let the council through COM
mittee Of its own number examine the books
and submit the results to the people. Let
all the facts that have any bearing on the
value Of this stock be made public through
the press. Then when the question of sale
comes up the people can act understand
ingly.
There is no need Of haste IN this matter.
There is no call for precipitate action. Pri- |
vate holders are showing no anxiety to dis |
pose OF their holdings. To sacrifice ten |
per cent. stock to pay debt that can be |
funded at4 ercent., would not be wise finan- |
cierlng. There is plenty of time to get at all |
the facts before any action need be taken in |
FAVOR or against the sale of the stock.
AS 10 the question of the adyisabilty of |
seliing thls stock at all, we have but few |
considerations to submit at the present time |
AS rule we should say that it was not wise |
for the city to invest in business enterprises
They should be left to individuals. But
light and water are necessities which every
citizen must have, and the supplying of them
may be strictly within the legitimate bnsi- |
ness of municipal corporation Ownership |
by the city in corporations whose business |
it is to supply them may be for the adyan- |
tage Of the people, inasmuch as it tends to
expose the business to publicity and thus to
prevent extortionate charges. Suppose one