The Washington times., 1894-04-08
STRUGGLEFOR CHEAPER GAS
Boston's Municipal Crusade in 1892
Against Costly Illumination.
THE COST IN FOREIGN CIrIrs
Tho Per ~housan' Tariff in England is
About Two-Thirds or Less t..n the Aver
age Rate in smerica-Diferent Prices in
Different City Sections.

Boston, April IA Boston newspaper be-
gan the war for 81 gas in its city. taas was
in Ju .e. 1892. 1t devoted ninety-flve col
ms of space to the fight, and almost yeai
was required to force the issue. The fight o;
the newspaper was kept up seven months,
and then Mayor Matthews took part in the
proceedings. He was the only one who
could make a petition to the gas commission
to reduce the price OF gas, and the mayor
made that petition on January 80, 1888 Inc
fight for cheaper gas began in earnest then,
for the mayor meant business from the start.
He employed Hon. George Frederick Williams
for counsel, and began a'rigid examination.
Then. in the latter part Of March, an order
for investigation was introduced into the
House of Representatives. On April the
first hearing was held, and from then until
June 10 there was very little delay about
pushing the investigation, bills introduced,
etc. to a final issue. Result: Boston has 81
gas in many sections of the city, and much
cheaper gas in all sections of the city.
The fight for cheaper gas in Boston re-
vealed some startling secrets Of the methods
of making gas; and making it pay. Now that
all has been exposed. 1t seems wonder that
Boston people were so long ignorant OF the
real state of affairs. As the investigation re-
vealed, however. some of the men whom the
commonwealth elected to look after her inter-
ests in the matter of gas companies and their
way of doing business Were content to please
the gas makers at the expense OF the consum-
ers. If the gas companies saw fit to change
from Sl.30 to SLIGO per 900 feet for their gas,
and their books looked very well kept. it was
not much their affair iftremendous dividends
were made at the expense of the gas consum-
ers of Boston.
When the newspaper fight had been waged
for some time one Of the first things that
opened Mayor Matthews eyes was the offer of
the Brookine "a suburb) Gaslight Company
to do the lighting for the city of Boston.
Mayor Matthews had made a petition TO the
Legislature asking permission for the city to
light its own streets, and that lighting COM
panies be obliged to furnish gas at cost. Bids
were asked TO-, and the Brookline company
offered to light the southern part of the city
proper and Roybury for 70 cents per 1000
feet, and it further offered to furnish gas to
the general consumer for 81 per 600 feet.
1t was also discovered about that time that
for several months the large hotels had been
getting good gas for 81 per 1000 feet.
When the Investigation began at the state
house there were some stormy scenes. The gas
syndicate was trapped, and the men who con-
trolled it made tremendous efforts to get out
of the clutches of the mayor OF Boston and
those he had employed to help him in the in
vestigation. One Of the first facts that ap-
peared 10 the public was the substantial
charge OF Mr.. Williams. that when he went to
the gas commissioners office and asked for
full reports of the doings of the gas COM
panies Mr.. Baker. one of the commissioners.
tore out one of the leaves in the book of re-
ports as he handed II to Mr.. Williams. This
leaf was found 10 contain the computations,
showing the costs, profits ETC.. OF the COM
panies, which had always been kept from the
public and from the mayor himself.
What the mayor himself said at the hear
ing when this fact was revealed gives pretty
clear idea Of the manner in which the affairs
of the gas companies were being concealed
from the people OF Boston. Said he: Il want
to tell this committee what attitude this board
of gas commissioners took when the mayor
Of the city of Boston made application to the
board to reduce the price of gas charged by
the Bay State Gas Company to the Boston
Gaslight Company.
''The committee are well aware that there
is only oae person in the commonwealth that
can bring that petition. and he is the mayor
of the city OF Boston. and if they don't have
twenty customers. the Statute fortunately
provides that the mayor can make applica-
ton. The application was made. and there
upon the corporation counsel OF the city of
Boston sent a formal request to be allowed to
inspect those returns, in order to be able to
show the commissioners what the cost was to
the Bay State Gas Company of manufacture
ing gas. but that permission was denied.
I'VE tried that case without Information,
and we argued it. We put in our evidence,
the other side put in none. The evidence
was closed and the arguments made, and that
commission sat there for two days listening
to those arguments and the evidence and
never said n word to indicate that they had
made the compilation which shows that it
cost the Bay State Gas Company only 40 cents
per 1000 cubic feet to manufacture and sell
gas. Do you suppose that if we had had that
information we would have rested our case
where we did without suggesting to the
board any particular price at which it was
fair for the Bay State to sell its gas to the
Boston company?
"Why. if we had had that information, we
would have asked them to add a sufficient
price to pay the interest on the capital in
vested, and to pass an order reducing the
price OF gas to forty-1ve cents per ,00G cubic
feet from 81, which was the price
they were charging. Now, one gentleman
asked Mr.. Barker what there was in these re-
turns except what was required by statute.
There was that page, and that page was the
reason Mr.. Barker did not dare to give us
those returns
Then, as the hearings proceeded from day
" udy- tHe WuOle history Oi Tue gus Irust came
to light That history was all the legislature
required to take prompt action for the good
of the people, and enact laws that practically
'squelched' the gas trust. The story of the
methods ofthe Boston gas trust, Of which Mr..
]. Edward Addicks. OF Delaware, was the
chief manipulation, is very long one if told in
detail, but concise review OF the facts that
were brought out by the stubborn fight of
Mayor Matthews for 81 gas shows very plainly
the pnsGihilitias for frand tho m foa
of gas, which should be ample excuse for any
other city in the United States making SINH |
lar investigation to that of the mayor of Bos-
Ton.
In the year 1884 there were eight gas COM
panies doing business in Boston. They were
all incorporated by special acts of the legis-
ature. The earliest was the Boston Gas
light Company. in 1922, and the latest was |
the Dorchester Gaslight Company in 1854.
Those eight companies had a total capital |
stock outstanding at that time of S5,21O.OOO. |
The total capacity of their works was $500 |
300 cubic feet per day. Their total out |
put as represented by sales was about 1,40O.- |
300, 600 cubic feet per annum. They had |
from 800 to $50 miles Of pipe in the streets of |
Boston. They were managed in a conserva- |
i've, old-fashioned manner, manufacturing
:oal gas exclusively, vigorously, AMI un- |
wisely, as it seems, objectiDg to the introduc- |
Ion of water gas. paying for extensions and |
Improvements out of surplus earnings and |
content to distribute among their stock I
holders dividends ranging from to 10 per |
cent. upon the capital invested and repre-
'ented by the stock.
You cannot examine the reports of the
Massachusetts, gas commission without |
'e2ching the conclusion that the city of Bos- |
on. or at least its central part, was WON
ierfully profitable field for the manufacture |
md sale of gas. 1t was considered such by
gas financiers and manufacturers all over the
country. 1t was considered that the cost Of |
gas as then manufactured in Boston could be
and that if competition were allowed