The Washington times., 1894-04-08

old ones encouraged others to make appli-
cation. Then it was that J. Edward Addicks
OF Delaware, turned up in December, 1854
He organized under the general laws o1
Massachusetts the Bay State Gas company
with the maximum capital allowed, $500, 900.
They applied early In 1885 to the board o,
aldermen for location. They got report
from the committee to which their petition
was referred, setting forth the benefits of the
COM s'ition and the gain to the community
IN cheaper prices, which 1t was expected
would come from the competition OF this new
concern. Influenced by these reasons, appa-
rently, the board Of aldermen granted a loca-
tion on February 9, which was signed by
Mayor O'Brien on February 16. One OF the
important conditions upon which this new
company was allowed to locate in Boston was
that 1t should compete literally and honestly
with every other company, and that 1t should
at once lay pipes In every street, lane, and
highway Of the city in which pipes were then
laid.
The Boston Gaslight Company fought the
new company bitterly, but Addicks won the
battle and got the Boston Gaslight Company
Just where he wanted it. After location had
been established, one of the first things that
the new Bay State Company attempted to 40
was to increase its capital. The Legislature
failed to see that it was necessary to increase
the capital, so Mr.. Addick went to work i'm
mediately upon other schemes. The proyis-
ions upon which the Bay State had obtained
foothold in Boston was that 1t should lmme-
diately construct its plant. lay pipes, etc.
Mr.. Addicks had no idea of constructing
works. it seems, from the beginning, but he
made a good pretense towards doing SO.
Finding that the legislature would not grant
an increase of capital, he made contract
with the Bay State Company to construct the
works promised himself In other words, he
made a contract with himself, for he was al
most the sole stockholder in the Bay State
Company. Then he went to Philadelphia
and organized the Beacon Construction Com
pany. He was also the virtual whole OF the
Beacon Construction Company. So he made
another contract with himself, and that was
to have the Beacon Construction Company
carry out the contract he made with the Bay
State Gas Company to erect its works, lay its
pipes, etc.
Notwithstanding that the contract of the
Bay State Gas Company with the city OF Bos-
ton called for about $50 miles of pipe, the con-
struction contract of Mr.. Addicks called for
such length Of pipe as Mr.. Addicks saw iii to
lay; and as matter of fact, Mr.. Addicks saw
fit to lay about fifteen miles OF pipe only. and
the whole works, which should have cost about
$4,000, 900, were never erected.
Mr.. Addicks didn't intend to erect works.
He simply manufactured stock to raise money.
The terms of the contract which Mr.. Ad-
dicks, OF the Beacon Conet ruction Company,
made with Mr.. Addicks. of the Bay State Gas
Company, was that the Bay State Gas Com
pany should pay S450. 600 in cash, and bond,
or u note, or something which cannot be
accurately described by any words in the Eng
lish language. was the remainder Of the con-
sideration agreed upon. This promise or
obligation" as it was called, was payable
ninety-nine years from date, and was to bear
interest at rate which should lie equal to
so per cent. of the net earnings of the
Bav State Gas Company.
Two years after the completion of what
little work the Bay State Gas Company had
done there was still very little gas made by
the Bay State Gas Company. That was in
1889 But during those two years Mr.. Ad-
dicks made up his mind that he must get con-
troll OF the four large gas companies of Bos-
ton. So he. with four other men, formed the
Boston Gas Syndicate some time in 1887. and
the syndicate got control OF the Boston Gas
light COMPANY y, the South Boston company,
the Roxbury company, and the Dorchester
company. The syndicate bought up the stock
OF these companies at enormous prices per
share. This accomplished the Bay State
company of Massachusetts proceeded to enter
into business on a large scale-not the busi-
ness of selling gas to the inhabitants of Bos-
ton in competition with these other COM
panies. but the business Of selling to the other
companies Of gas at profit OF about 40 per
cent.
At the time OF the investigation by Mayor
Matthews this Bay State company was max
ing half OF the gas sold by the combination.
All that time no contract for the cash pay
ment and for the bond of 81 800. 900 had been
carried out; but the earnings OF all these four
companies went largely to pay the interest on
that bond, and the reports of the companies
cent, while as matter OF fact they were
earning IS per cent. The people of Boston
were paying for the extra 10 per cent. on a
bond which was practically fictitious.
While all this was going on Mr.. Addicks
organized the Bay State Gas Company of
Delaware. The formation of this Delaware
company was the crowning effort of Mr.. Ad-
dicks, which seems to have been his idea in
the beginning. When he had formed the
Delaware company he at once made over the
famous "a, ,500.0 bond to that corporation,
and then the real function of this bond was
to act as conduit pipe, conveying away from
the Massachusetts corporations the surplus
profits of the gas trust into the treasury of
the Bay State Gas Company of Delaware,
there to be peddled out. 1t was the longest
gaspipe this corporation ever laid. 1t began
in Massachusetts and it reached all the way
to Delaware. The interest on the bond had
amounted in 1892 to nearly $500,
But when the investigations had closed
the Bay State Gas Company OF Boston and
the gas trust had closed, all by reason of
laws enacted as an outcome of the investiga-
ton, and to-day Boston has 81 gas. The
whole city Of Boston does not have dollar gas
because it costs much more to make gas for
some sections than others. But there has
been a big reduction, as, for instance, Dor
chester citizens are paying now about s1.SO
per 900 feet, whereas before the reduction
they wele paying S1.59. Roxbury people pay
S11O.
T.; ;.,t, r.. Az:
gas as compared with what the people of
Great Britain pay. The following figures
show the rates in some OF the principal cities
of Great Britain:
Manchester, 65; Liverpool 65; Dublin SO;
Portsmouth, 60; Plymouth. Al; Newcastle, 4s:
Sheffield, A; Gloucester, 60; Leeds, 62; Edin-
burgh, IS.