Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1891-12-24
A LONG CONFERENCE.
Representatives of the City and Natu-
raj Gas Company
MEET AND DISCUSS THE MATTER.
Director James J. Buchanan States the ComPsny's
Position and tie Ulhmaum-A Sub-Oon-
mitss Appointed 70 60 70 Pitshurg
and Get Information.

the Board OF GaS trustees uleO III
Joint session at the office OF the Water
Rosrd. last evening, to discuss the
natural gas situation with the repre-
sentatives OF the Natural Gas Company
OF West Virginia. There were present
on the part OF the Company, Mr.. Heard,
General Alfred Caldwell, Col. Geo. i.
Caldwell and w. Fl. Hearne, counsel,
and James |. Buchannon, OF Pittsourg,
of the Board of Directors of the Com
pany. City Solicitor Riley was pres
cnt as counsel for the city. Mr.. M.
Pollock, President of the Water Board,
presided.
Mr.. Pollock briefly stated the object
of the meeting. and then Mr.. Buch-
annon, on the part of the Company,
made a preliminary general statement,
opening by saying that some years ago
a public spirited citizen OF Wheeling
had met Capt. Vandergrift on train,
and the talk turned on natural
gas, then foremost in everyone's mind.
Capt. Vandergrift became impressed
with the views of the gentle
man, and on the latter stating
that he thought an exclusive franchise
could be obtained, the Captain had
called the attention Of his business asSo-
ciate to the matter. There was tacit
understanding that no one else should
be allowed TO come in until the Company
had at least gotten its capital stock
back. His Company came here in good
faith, accepting an ordinance, not con-
tanning the terms they had expected,
but what they were induced to accept
under pressure; but hardly had the ink
dried upon the paper, when another or
dinance was passed-secretly, so lar as
his Company was concerned-ln favor
of the Manufacturers Natural Gas Com
pany. That was done, perhaps under
color of law, but not In good faith,
and was the situation other than 1T was,
not a dollar OF the money OF the
Natural Gas Company Of West Virginia
would be subject to this meeting tonight.
The city had not acted in good faith.
He went on to say that his Company
was not a company which had small
amount Of capital invested. The
amount was large. Neither was 1t
company in which the original capital
mad been watered out Of sight. He
thought he could demonstrate that
every dollar invested had been expended
by the Company in good faith.
In 1856 and 1857 the Company drilled
eleven wells, OF which but one was now
in the line. In 1883 five wells
were drilled and only three
were now supplying gas. In
1889 six wells were drilled
and all were in use. Six
were drilled in 1890, and six in 1891.
All these were in use. In addition
twelve non-producing wells were bored,
making forty-six in all, al cost of So
600 each. But twenty-five were now
producing gas.
When the line was laid down and the
first wells bored, the Company supposed
IL was then on good basis, and that
there would thereafter be none but or
dinary expenditures. In fact, thirty
five wells had since been drilled, at
a cost of over 5000, 900, and the cost of
auxiliary pipe lines had been S175,000
more. In all the Company mad thus
spent over S400, 900. The natu-
raj gas business generally had
not been a financial success. 1t was
true that money had been made out OF
the natural gas business, but that had
largely been done by building up a ticti-
tious business, and then unloading the
stock. This method had not been pur-
sued by the Natural Gas Company OF
West Virginia. Their stock was held
by limited number of men, and they
had been met at the outset by the refu-
sal of one of the original corporators 10
go in, necessitating the taking up OF
his stock by the others. 1t thus came
about that all now in the Company had
put in more money than had been at
first intended.
Something had been said about his
Company making money. So far from
getting their capital back, they had not
paid interest out of the gas business, and
all the money thus paid had been out
of fortunate oil operations. The busi-
ness of bringing gas TO Wheeling had
been a losing venture, while the city
has been paid the equivalent OF Sl5O,OOO
in cold cash.
1t was the expectation Of the Company
when they came here that they would
be fairly treated, and that possibly a
large amount OF money could be made.
On the contrary, the business had been
a losing one, and the city OF Wheeling
had gotten all out Of it there was in it.
The City of Wheeling, he thought, was
not in a position TO 20 into Court, be-
cause the city was on record IN the
Courts as saying the ordinance was not
4 contract. But his Company was not
in Court, and was not assuming a
threatening attitude. They were going
on the supposition that there would be
friendly settlement OF the question.
Their general manager, Mr.. Heard, had
not been bellicose, and he had not
gone as far as the Board OF Directors
had warranted him.
Something had been said about the
Company having its plant and pipes
here, and couldn't get away. He didn't
want TO be understood as making
threats, yet it was fair TO disabuse
some minds of erroneous ideas,
and he thought he could best do that,
perhaps, by relating the experience OF
a Pittsburgh Company which bought
gas from town called Baden. That
Company put in Ss0O,O at first, failed,
and was sold for S240.OOO. When the
purchasers took hold they found they
has nothing buta string OF pipe-for
the old Company had neither gas wells
on business. That was three years ago;
the first year they lost S24, 900, the Sec
ond year they made $4,000, and the
third year they made 10000: and last
month they made $1,000. Now, he did
not want to make threats, but be would
say his Company was pre-