Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1890-02-03
HISS NOT SOLD OUT.
SENSATIONAL RUMoRs ABOUT THE
ELECTRIC LIGHT COMPANIES.
The Gas Company About to Establish
Extensive Ineandescent
Light Plant.

Inc following arlClei uuuer lne caplo1
of "Sold Out" appeared in yesterdays
issue of the Sacramento Leader;
1.-THE startling announcement was made
yesterday upon what is regarded as I'M
questionable authority that a deal was
made two days before that will open the
eyes of the people of Sacramento.
THE history of the struggle of ]. D.
Redding and others to secure a franchise
for the erection and maintenance of an
electric light plant in Sacramento is well
known to every reader of the Leader.
Time and again the matter was continued
by the Trustees, until Mclaughlin insisted
that it was nonsense to delay any longer.
By his vote and that of Mr.. Wolf the fran
chise was granted.
1.-The applicants for franchise made all
sorts of promises. They agreed to expend
$50, 600 in buildings, machinery and other
equipments, 1000 the first year and an
equal amount the year following. If they
sold out to anybody the city should have
the first chance to make an offer for the
property. They meant business, and
property-owners generally were glad to
greet competition in the matter OF public
and private lighting.
THE gas company fought the granting
of franchise bitterly. 1t was represented
that the company was owned by our own
people aud that if franchise was granted
to outsiders it would simply compel
the company to buy it. 1t was even
intimated that the scheme of the petition
ers was merely to sell out to the gas COM
pany, and the petition was not made in
good faith. Mayor Gregory needed these
But it was granted just the same.
ia raDOrtpd now that the new p0p1-
pany will erect no buildings, buy no new
machinery, add nothing to the wealth of
the city.
"In short it is said that the new concern
has bought the electric light plant hereto
fore owned by the gas company. We are
to have no competition. Consumers will
pay as usual for their light, the city will
have to foot the usual enormous bills, and
the delightful harmony that has reigned so
long is to continue undisturbed.
at is supposed that rather than face COM
petition from a new corporation the gas
company has parted with its electric light
business for the amount that it paid for it,
$780, &C, which represents the par value of
the stock.
'Thus, so the report is, and there seems
to be no reason to doubt it, the people who
were bitter controversalists few weeks ago
HUN Omcll lOEctacl LII luC l1OSl plCdclliS
communion. The lawsuit brought at the
instigation of the gas company to restrain
the Trustees from granting the franchise to
Redding & Co. will doubtless be with
drawn. The people are in precisely the
position they were before the gas company
bought out the electric plant that it had
Just sold. They will have to get along
with the unsatisfactory gas furnished, or
return to petroleum or the ancient tallow
dip.
1.-THE terms of the sale are not known,
but it is not regarded as probable that the
gas company gave up the fight and placed
themselves at the mercy OF a competitor
without reaching some sort of an under
standing. The prospect for the public is
not very bright. The Trustees, unwittingly
it seems, have not introduced competitor
in the light business in Sacramento. We
will have the pleasure of meeting the same
old bills made out IN the same outrageous
figures. The monopoly is apparently to be
as solid and as impregnable as ever.
THE next time new light company
applies for franchise here they will prob
ably be required to give a substantial and
solid bond, or go without their franchise
PRESIDENT SHERMAN DENIES IT.
A RECORD UNION reporter called upon B.
U. Steinman, President of the Capital Gas
Company yesterday, and, showing him the
above article, asked if what it set forth
were true.
There's not word of truth in it, sill"
said Mr.. Steinman, after reading the article.
I'VE have not sold out and are not going
to. Don't you think it would be rather
foolish on our part to be frightened before
these new people begin operations? Why,
they have not driven stake yet, nor
stretched wire. Then, besides, we could
not have sold out without the matter be-
coming public. A general meeting of the
stockholders would have to be advertised
according to law, and it would require ma
jority vote of the stockholders in order to
sell out The stockholders have not met,
and so far as l know are not going to for
any such purpose.
"Have you transacted no business what
ever with the new company" asked the
reporter.
"Well, We have made a proposition to
them to buy that portion of our electric
light apparatus which we used in the city
light ing. This consists of some fifty odd
lamps, wires, poles, and two dynamcs.
This proposition is very natural as the ap-
paratus for lighting the city will be of no
use whatever TO us in the future, now that
the new company is to light the city. We
would like to sell them this apparatus, and
will try to do so. 1t is very likely, too,
that it will be sold, as it would bring about
quite a saving to both companies. But you
| can rest assured of one thing, and that is,
that we are going to give them fight,
They will have no walk-over here"
JUDGE benson INTERVIEWED.
Judge benson, who is the attorney for
the Capital Gas Company, WIS next seen by
the reporter. We'll" said he, after read
ing the article, "if such thing has &C.
Cured l know nothing of it; but 1 doubt
the truthfulness of it. In fact l am almost
certain that if any such action were to be
taken 1 would be consulted. 1t is not likely
that the old company would quit before
the battle had begun, and from what
have been given to understand, the old
company will give the new corners a good
| fight. 1t would look more probable if the
| rumor was to the effect that the new COM
pany had sold out. l expected something
of that kind. In fact l put myself on
record before the Trustees in this regard,
| having stated openly that the new COM
pany did not propose to invest anything il
| it could help itself and only wanted to be
| bought out. There has been some talk
about selling the city lighting apparatus to
| the new company, but | don't know
whether or not sale was consummated
| Several of the Directors of the old company
| have been in consultation with me in re-
gard to the proper and legal mode of incur
ring bonded Indebtedness, SO that the
stockholders may continue to draw divi.
dends, and at the same time extend the
present electric lighting system. This does
| not look like they had sold out, does ii? Ii
is proposed to establish complete mean
descent system for lighting private dwell
| ings and stores, in connection with the
regular arc light system. This latter system
will also be enlarged