The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1888-04-21
The MAYOR and the Gas Stock

Speaking Of the proposed sale of the gas
stock few days ago Mayor Chapman said
the subject was not new one and had not
been introduced into the present city govern
ment for the first time. The matter came
before the last city council, but NO definite
action was taken. The Mayor said he fa-
vored the sale of the stock provided its full
value could be realized. He fully agreed
with the PRESS that thorough investiga-
tion should be had to ascertain the value of
the stock in advance Of sale. The rea-
sons he favored the sale were these: Our
debt is now so large that it impairs our cred
it. If the full value of our gas stock could
be realized and the amount devoted to the re-
duction of the city debt as it would If he had
charge of it the result would be considera-
BILE Improvement of our credit. 1t might be
argued that the fact of the city's ownership
of this stock would be taken into account by
investors, but that was not the case. Some
States had laws forbidding savings banks to
invest in the securities of fmunicipalitieswh0s
debt exceeded per cent OF their valuation.
The fact that the clty's assets deducted from
its debt might take it out of that category
did not take it out of the prohibited munich
paltieS. Another reason for selling was that
gas stock was probably worth more today
than it ever would be again. He had been
informed by persons who ought to know
year ago and its tendency was to decline.
There were several reasons for this. One was
the progress of electric lighting which
was reducing the revenues of the gas COM
pany Another was the fact that the value
of the company's real estate had declined.
Still another was the probability that In the
near future large sum of money would have
to be expended to repair or renew the gas
company's apparatus. The gasometer was
nearly worn out and new one would have
m ha nrnvidpd S00u.
With regard to the apprehension that the
sale of the city's stock would result in the
consolidation of the gas and electric compa-
nies, thus creating powerful monopoly. he
said that the city had no power to prevent
such consolidation by holding on to the
stock. 1t owned one quarter of the stock, while
private holders owned three quarters so that
the latter, if they saw fit, could arrange
consolidation in spite of all the city could do.
The ownership of stock gave the city no
voice in the management of the gas compa-
ny. A year ago when the city asked that it
might be allowed member OF the board of
directors and the gentleman selected by the
City Council, presented himself at the
stockholders meeting with the official re-
quest of the Council, the stockholders paid
no attention to it whatever. The Mayor
said, however, that if it was decided to sell
the stock he should urge that all possible
the sale from assisting in the
consolidation if any such scheme was on
foot The sale of the stock in small blocks
might have tendency to do this. The
Mayor further said that his only desire i'll
this matter was to do what was for the best
interests of the city. He thought if the full
value of the stock could be realized il was
best to sell it, but If majority OF the Coun-
Gil thought otherwise, that of course settled
it. But If it was decided to hold on to the
stock he thought the Council should renew
its request that the city be allowed direc-
for and insist upOn it,