Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1893-04-06

BosroN, MASS, March 3O,-.Representa-
tive Parker Of boston introduced in the
House, Monday, an order toinvestigate the
Bay State Gas Company The order pro-
vided for the appointment of committee
Of seven to investigate the charges made
by Mayor Matthews, and Went over until
next day.
The order was as follows:
WHEREAS, Among the gus companies doing
business in the city OF Boston are the Boston
Gas Light Company. the Roxbury Gas Light
Company, the Dorchester Gas Light Company,
the South Boston Gas Light Company, tho Bay
state Gas COMPANY, The first four being lncor-
pGla ted under special charters, with an nggre-
gate cap tai Of sa.Ait0OO and the last being
organized under the gen raj laws OF tho COM
monwealth with n capital OF $500, 600: and.
WHEREAS u uppents from the returns made
by the Officers Of tho said companies 70 the
secretary Of the commonwealth and from
advertisements and clculars issued on behalf
OF the securities OF the Bay state Gas Company
OF Delaware, that substantially all the stock Of
said Bay state Gas Company, and almost all
the stock Of said other four companies-or
more exactly, 1884 shares out OF "a ,400 shares
ARE held Or owned by a foreign corporation,
to wit, the Mercantile Trust Company of New
York, in trust for another foreign corporation,
- wit, the Bay state Gas Company of New
Jersey In trust for another corporation, to wit,
tho Bay State Gas Company nt Delaware: that
an additional 1000 Of said ll,ij0 are owned by
one j. Edward Addcks, alleged to be a resi-
dent Of Delaware and others, trustees Of an
commonwealth, but entitled the Boston Gas
syndicate. and mat 9ii additional shares are
owned by said j. Edward Addicks, all Of said
23,5ii shares being supposed 10 be held in
trust for tho said Bay state Gas Company of
Delaware, and that the said Bay State Gas
Company OF Delaware has issued against these
5tcuii les, representing. as aforesaid, n total
capital subscribed IN cash of S4ii0.OD0, 81 Co.,
0B1 Of first mortgage bonds, 93tO0,C01 OF second
mortgage bonds, f2EuO,0u0 Of income bonds
aud f5,UUOOO0 OF stock, or in all Sl1,O0O,OOO OF
seruritis; and,
WHEREAS, 1t appears from returns made by
said companies, the Board Of Gas and Electric
Light Commissioners and from The reports
made by said commission 70 the Legislature,
that the said bay state Company leases its
mains to the Boston Gas Light company AT an
annual rental equivalent TO between % and so
ter cent OF the cost thereof; that the Bay State
| Gus Company sells gas 10 said othercompanies
at profit OF 100 pet cent; that some OF the SAID
| other com pHnies have ceased to make gas alto
| setner and purchase their gas from the said
| Bay state Gas Company NJ profit Of 100 per
| cent: that the total admitted receipts OF said
| Bay State Gas g mpanv during the asl fiscal
| year were s7t1,,60 AZ, the operating expenses,
| f9ld,63sW, aud the net earnings s45i,gs256, or
/ % per cent OF the capital stock OF the corpora
| ton; that SjD00l of SAID net earnings We're APP
| piled tnthe payment Of l0ret cent dividends on
the said capital stock; that the remainder Of
| said net earnings was paid out as interest
| upnn an alleged note on obligation OF Si,b00,OOO
| held as Is supposed by some foreign corpora
ton for the benefit of said Bay state Gas Com
| pany Of Delaware and its securities: and the
! total amount IHlu Uut DS inc sHlu bay Etdte
| Gas Company during said fiscal year as divi-
| dntlus on Its stock and as interest on said al
| legged obligations was $4,000 or % i-lO per
| cent of its capital stock.
| The order then alleges that the s., 500 900
| note is fictitious obligation and the in
| tercst on it used in reality for the paying
| Of interest and dividends on the Sl7 ,0OU,uOO
| bonds and stock issued by the Bay State
C;as Company, The actual cost Of the works
and plant being but 81, 10000. The order
then refers to the fact that the directors of
| the company in 1850 swore that its real es-
tate was worth Sl,956, 30S.3G, when in the
year previous they had sworn that the
same property was worth only $3.50, 300.
| The order called for 4 committee of
| seven members of the House to Investigate
these allegations aud charges, with power
10 compel witnesses and to recommend
| legislation, il any is necessary, report to
be made in four weeks.
| When the order for the investigation
was reached, lively debate arose ON the
question Of choosing the committee to
make the inquiry.
Mcssrs R6su0skey of Boston, Hall os
WubErn and kOhlrausch Of Billerica urged
the claims of the committee on manutac-
tures and Messrs. Moriafty Of Worcester,
Rivers Of Milton, Parker of Boston and
Melleu OF Worcester, stood for sending the
matter to the Judiciary committee.
Ii was urged in favor of the committee
on manufactures that they had some 10
bills dealing with the gas question before
them and We're already well informed on
the matter to be Investigated. On the side
of tine Judiciary COMMITTEES, it was held
that the question was one that required
legal knowledge, and that the committee
on manufactures had not disposed of the
matters already before them,
The reference to the committee on judi
Ciary was defeated by vote Of As to 06,
ana the committee on manufactures were
aade, to Tie committee ot seven provided
by the order. ..M@