The Portland daily press., 1888-04-25
Alarming Symptoms.


To the Editor Of the Press:
Inasmuch as the Mayor has been pleased
to furnish the PRESS with his reasons for
favoring the sale" of the city's gas stock,
and has thought proper in that connection
to refer to his last years proceedings. 1 trust
that you will permit respectful inquiry of
similar scope.
His Honor's first reason is that ''our debt
is now so large that it impairs our credit"
Less than one year ago, in a circular pub
lished May 26, 1887, over his Official sigma
ture, the Mayor states the amount of "our
debt" to be S3, 946, 800, and after an elaborate
exposition of its details goes on to say that
sin view of all these facts, we take pleasure
in recommending the above loan (s627, 800
per cents as an absolutely safe investment
for trust funds"
That the Mayors official guaranty of our
credit in May, 1887, was accepted by inan-
ciers, appears from the fact that said loan
was Immediately negotiated above par. a cir
cumstance to which His Honor did not for
get to refer as evidence of that very fact. as
late as last month; for it will be remembered
that in his recent inaugural, he congratula-
ted our citizens on our excellent financial
condition." which he says "has been fully
attested by the floating of our per cent.
funding loan at par and a slight premium,
during year of unusual stringency in the
money market"
In the same inaugural he also states that
since the negotiation of that loan, more than
half million dollars of ''our debt" has been
paid (S503, 500, more than one-eighth Of the
whole amount. Now allow me to ask how
the Mayors circular and last inaugural can
be reconciled with the statements that "our
debt Is now so large that 1t impairs our
credit?"
The second reason assigned by the Mayor
is that gas stock was probably worth more
to-day than it ever would be again."
In fact His Honor has been informed by
persons who ought to know that it is not
now worth as much as 1t was year ago and
that its tendency is to decline" and three
progress Of electric lighting is reducing the
revenues OF the gas company. Is not that a
singular reason to be assigned by the official
representative Of a city which, although the
largest stock holder as well as by far the
largest customer has done more to reduce
its revenues" by the substitution of electri-
city than all other customers put together? I?
Would there have been any reduction Of the
gas c0mpany's revenues at all, II the city had
not seen fit thus to withdraw its patronage?
And is it not in the power OF the city to
restore those revenues at its pleasure? Sup
pose. for instance. that it should retain the
are lights wherever necessary or desirable,
and return from incandescent lights to gas,
would not "the revenues OF the gas COM
pany" become at once greater than they ever
were?
The Mayor is also informed that the COM
pany's real estate has declined, and that its
gasometer, and other apparatus Is nearly
worn out. Is the Mayor sure that such are
the facts, and all the factss the truth and
II not, it is pity that he should have
made such broad statements public just at
this time, because the tendency Of such Of
fetal public declarations and admissions Is
to depreciate the very stock which the May
or Is trying to induce the City council 10 al
low him to sell.
notice that the Mayor does not intimate
that he doubts the prevalent impressions
that a''combine" or 'trust' Is impending to
force up the price of light in Portland both
for the city and for the citizens. Our peo-
pie would have been gratiied at such an as
surance from the Mayor or from any other
responsible source. SO long as there is any
possibility Of the creation Oh so powerful a
monopoly" as the Mayor well calls 1t, is 1t
not exceedingly unwise for the city IN ITS
corporate capacity to commit an act which
is liable to assist" the consummation of a
scheme which forebodes so disastrous re-
suit? To be sure, the Mayor assures the
public "that he should urge that all possible
precautions should be taken to prevent the
Sdlt rum doSloblLB III INC COuSOiludbltn W
selling it in small blocks. Does not this
suggestion Of the Mayor sufficiently answer
his argument that the city has no power to
prevent the combine by holding on to the
stock?
One thing is certain so long as the city
holds on to its 100 shares, the monopolists
will be compelled to get hold Of at least S30l
shares belonging to divers private individ-
uals at such prices as those individuals may
please to impose, while if through small
lots" or otherwise they contriye to gobble
the city's interest. they will need only 1901
more.
The Mayors promised caution in reference
| to the impending combine reminds us that
the city once owned nearly half the stock Of
the gas company in an evil hour. instead OF
buying enough more shares to control the
corporation and secure cheap light not only
| to the CITY but to the citizens forever, the
| city foolishly parted with half its Interest at
| a triiing premium against the protest Of
| some of the ablest and most experienced
| members Of the City Council
Should not this warn us against repeti-
/ tion of the blunder? If some one expert at
| figures would compute in actual hard money
! the sum lost by that transaction, reckoning