The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-05-17
.L|GHTMAkERS At WAR.
The Secret of Recent Reduc-
tons in Electricity and
Gas.
A NEW RIVAL IN THE FIELD
The Mutual Electric Company Will
Soon Be Ready to Enter
the Arena.

the Arena.
Within few months there will be a
| lively rate war among the gas and electric
light and power companies and prices Will
90 down to figures never before known in
this City. The first, movement in this d.
rection was the reduction of the price OF
gas and electric lights by the San Fran
cisco Gas Company, the Pacific Gas I'M
provement Company and the Edison Light
and Power Company. The cause OF this
was the organization of the Mutual Elec-
| trio Light Company, of which z. b. Corn
wall is the president. This company has
its Office and power station at GIT Howard
street, opposite New Montgomery. 1t be-
came known a few months ago that 1t
| would enter the field and compete for the
patronage OF those who use electricity and
gas for Illuminating and power purposes.
| The Edison people were the first to recog-
nize the rival and since the first of the
year they have made two cuts in their
rates.
! Their example was quickly followed by
the San Francisco Gaslight Company and
later by the Pacific Gas Improvement
! Company. Neither of these corporations
will admit that they are making the first
movement in a cut-rate war upon the new
company, but the officers of the latter say
| that the recent reductions were simply the
| throwing of the gauntlet at them and they
! will soon be able to take it UP and do
/ battle.
President j. B. Crockett of the San Fran
cisco Gas Company, in explaining the rea-
| sens for the reduction. said that the tariff
| on coal had been reduced from 70 cents a
1 tnr tn nd cQH To hQ
| permanent his people decided to give the
| public the benefit. The company had long
| contemplated reduction. he said, as soon
as it was possible to make it, and the new
| rate would go into effect on the LIST of July.
The new rate will be 1231 per cent less than
1 the present, or saving OF % cents on 1000
feet OF gas to the consumer For fuel and
manufacturing purposes the reduction for
| 1000 feet will be 80 cents.
Mr.. Miller of the Pacific Gas Improve
| ment Company gives similar reasons for
the reductions his company will make.
''We have reasons to believe that our BUSH
ness Will be more encouraging. We have
made favorable contracts for our supplies,
such as coal and oil, and we are glad to be
able to share our prosperity with the pub
lie. We wanted to make reduction some
time ago, but the San Francisco Gas Com
pany was not in favor, and we did not
wish to begin rate war. AS to electricity
being better for all purposes. why, that is
mistake. Gas is the cheapest and best
| light that has been found SO far Mr..
! Miller denied that there had been any
compact with any other company toward
making war on any persons or corpora
| ton.
j. 3: Green, secretary and manager of
the Edison Light and Power Company, de-
clared that no movement was being
| made toward giving the rival warm
| reception. He said that in five years there
had been six cuts in the price of electricity,
two OF which were since January. The first
| this year was 10 per cent on incandescent
lighting, and 20 per cent on electricity for
power. The last cut was on May /, a re-
duction of % per cent on current for arc
lights on the underground system. eff the
new company put their prices down we
will try and meet Them" said Mr.. Green
Mr. Cornwall or the new company seems
to think there is field for another electric
concern, although so far we have with our
extensive plant and Improvements, etc.,
been able to meet all demands for both
power and light"
P. B. Cornwall, president of the Mutual
Electric Company, is of the opinion that
there will be rate war started as soon as
his plant is in working order ''While we
are not an opposition company we are
competing company, and we are going in
for all the business we can secure. We
have already contracts for furnishing
electricity for illuminating and power pur-
poses. Many of our stockholders are power
and light consumers. These will, of course,
leave the other companies.
"1n recent interview published in the
CALL j. B. Stetson's remarks were con-
strued by me as threats to drive us out of
the field. Well, we are ready to meet him
on his own ground. We will be equipped
so as to be able to sell electricity cheaper
than any other company. / don't say
this in boasting way, but as fact. The
Edison Electric Company is more heavily
handicapped than we are. 1t has out
100000 of the old California Electric
Light Company, all of which draw in
terest. Besides, the stockholders expect
to receive dividends on their So 600, 600
stock. The company has made costly ex-
periments, and even now has on hand
stock that is not the latest improved.
'sWe have no bonds and will not issue any.
and it will be an easier task for US to pay
the interest on 100000 shares than for the
Edison folks to meet their obligations.
can construe the gas and electric compa-
MES recent reductions in but one way, 4
and we will be repaired to accept the
challenge and sell as cheaply as any one.
They claim that they have the best con-
dult system, but we are sure that ours is
the best patented so far. We have already
filed our bonds, with Alvinza Harvard
and A. w: Rose as sureties, for street work
be on Market street, from Second to Ninth:
Fourth, from Market to Howard, and
Sixth, from Market to Howard. They
will be laid on both sides of the streets and
we Will eventually cover all the business
parts of the town.
Mr.. Cornwall said that the laying of the
conduits would be begun shortly. Within
few days four of the finest boilers ever
built will be in place in the new power
mousse. The engines are now being put
together, and viii be in working ordervery
soon.
what will be the rates you will charge
your customers for electricity 9' was asked
OF the president of the new company.
II do not consider it wise that / sbonId
make that fact public. We know exactly
what 1T will cost us to make electricity We
also know what we can sell il for at profit
on the investment and we know thai the
other companies cannot afford 10 60 down
to these figures. Il they try Il they will be