Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1892-03-10
UNDER A GAS RING.


ton notel-keepcrS, VINO rebel against the
price they are compelled to pay for gas,
have organized to pass a bill through
the legislature to annul the contract
under which the price is maintained.
They pay $1.30 now, and as the old Bos-
ton Gas-light Company used to sell gas
for 81 to large consumers, they are de-
termined to bring back the price TO the
old figures.
1t is very interesting story how
Boston came to fall into the hands of
the gas ring, so far as it can be gathered
from public sources of information.
Were one of the ring to reveal the inside
history, it would surely be far more
interesting. BY devious ways the con-
dition of gas consumption has come to
the point where dividends on $5,000,000
are paid, while the plant which is the
basis OF the payment cost only about
$S00,000. The Boston Gas Light Com
pany and several smaller companies
buy gas from the Bay State Gas Com
pany at 81, and sell it for $l.30, though,
being water gas, it costs only 35 cents
per 200 feet to make, and the Boston
Company pays the Bay State Company
$100,00 year rental for pipes whose
total cost was $4,000
The beginning of this consummation
was in December, 1884, when ]. Edward
Addicks organized the Bay State Gas
Company under the general laws of
Massachusetts,, with $500,000 capital.
Addicks owned all the shares, except
few which were necessary for others to
own for sake of organization. On
February 9th, 1885, by vote of seven to
five, the Boston aldermen gave Addicks
permission to lay his pipes in Boston.
On March 18th following, Addicks,
holding about all the stock of the Bay
State Gas Company, in behalf OF that
company contracted with himself ITO
build for the company the works neces-
sary for making gas, and to lay the pipes
and to furnish the other essentials for
the complete plant. Addicks, as the
company, agreed to give Addicks as the
contractor $5,000,000 for the plant,
which was $500,000 more than the COM
bined capital of the nine gas companies
then supplying the different districts of
| Boston.
This contract being made, Addicks
the contractor went to Philadelphia and
organized the Beacon Construction
Company, Limited, whose capital stock,
all subscribed, was $1,500,000. Accord
| lug W lue OiDCldi CtTlluCdtb Ol lllCOT-
| poration the full names of the subscribers
and the amount of capital subscribed by
each were as follows: George II. Chris
tian, 81 900 in cash; w. Harry Miller,
| $1,000 in cash; j. Edward Addicks,
$1,498,000. But that sum of 81, 1880
consisted solely of that contract made
by Addicks as Bay State stockholder
with Addicks as private contractor,
l xrhf fal ha nb AA 10 tha Nrxt.-
structlon Company, Limited,
| Then came the work of the Beacon
Construction Company, Limited. How
mnch this company actually spent for
the new gas plant is uncertain. 1t is
assessors tax it for only $631 500, for
that is all the value of the property
they find there, on the basis of Boston's
taxable values, which is the full market
value. But, be it either $600,000 or
| $500,000, the Beacon Construction Com
pany, Limited, was paid the full
$5,0O0,000 provided in the contract
which Addicks, for the Bay State Gas
Company, made with Addicks, private
contractor.
Following the construction of the gas
plant under the above circumstances
came even hotter financiering than that.
Addicks and his associates proposed to
buy up, not only all of the gas COM
panies in Boston, but also those in the
vicinity, or IA in all. A full-page adver-
tisement was published February 10th,
1889, in an English gas and electrical
journal, setting forth the details of the
plan and mentioning every one of the
IA companies, by name, to the purchase
..E al. AL ~ 4
raised. In this advertisement the cost of
the plant which the Boston assessors
tax at 1851 800 was said to be over
$2,000,000, and it is to be further no
ticed that the official return of the COM
pany to the board of gas commissioners
of Massachusetts of date June Both,
1899, when but little more had been
spent upon the plant, stated the value
of the plant at $4,950000. But the effort
to raise money enough to buy up the IA
local companies was successful. In the
course of events, however, only four
companies were thus bought up-the
Boston, the Dorchester, the Roxbury
and the South Boston-and there seems
to be an abandonment OF any idea of
further extension. One of the mysterious
phases of this complication is what has
become OF these millions Of money which
were raised, but which were not used as
Intended.
Another complication was the forma-
ton of the Bay State Gas Company of
Delaware land there have been also the
Bay State Gas Company of New Jersey
and the Bay State Gas Company of
Pennsylvania) which operates the Bay
State Gas Company Of Massachusetts
and the four local companies which
were bought up. The nominal capital
of the five companies is $4440, 900 and
the assessed value is $6,406,900 But on
this basis S17,000,000 of obligations have
been issued, namely, $7,000000 first
mortgage 5s, $4,000, 900 second mortgage
5s, $4,000, 900 income rs, and $5,000,000
stock at $50 par value OF the
| $l7,000,000 the first $10,000,000 repre-
sents what was paid for the local
companies at the figures well above the
market value, which tine Addicks men
were forced to pay in order to get
possession at all, while the income bonds
and stock represent no money paid in.
The phases of the matter are various,
vague, and in some respects incompre-
hensibe. An order has been adopted
by both branches of the legislature
directing the board of gas commissioners
to make thorough investigation and to
report to the legislature. Authority is
conferred to send for persons and papers
and SO the inquiry may be thorough.
AT the office of the commission | am
told that it is impossible to get a clear
idea of the case from the conflicting and
confused statements of the parties in
volved. There are wheels within wheels.