New-York tribune., 1896-12-24
POINTS ABOUT DIVIDENDS.
HOW THE GAS TRUST HAS WORKED THE
FINANCIAL END OF THE BUSINESS.
A1.nrRMEN TALKING OVER TERMS OF CON-
TRACT FOR WHICH THERE is ONLY ONE
pIpprR-REIIEr LOOKED FOR

FROM ALBANY.
The City Works Department has not yet ad-
yertlsed for bids for furnishing the city ana pri-
yate consumers with gas for periods OF one three'
five and ten years as instructed 10 oo os Tic
Board Of Aldermen. 1t was said at the Depart
ment Yesterday that work was being done pre-
paratory 10 such advertising. The Aldermen are
now resting and will continue to DO so until the
bids are submitted and they are called upon 10
decide the important question as 10 whether
contract shall be let for one. three or hve years
The ten-year proposition has practically no ad-
vocates who have the hardihood to espouse H.
Lines seem to be tightening for fight between
the short period men and the iive-year men. win
the odds at present in favor of the latter.
In view of the possibility that the Legislature
this winter. under a greatly aroused pubic SEN
timent. may give the people relief. either by pass
Ing law making the maximum price 10 be
charged for gas ST. or in some other way, there IS
much opposition being raised among business
men and others who have the interests Of the city
at heart to q fve-year contract. 1t is scarcely
hoped that the Brooklyn Union Gas Company VIII
offer to supply private consumers with gas at
less than 81 "a for the first year. and. perhaps
reduction of one cent each year thereafter This
relief would be so insignificant that it would
hardly be worth fighting for. and itthas been
suggested that II a contract is entered into Tor
five years. in which such rate is one OF the pro-
visions no relief could come to Brookiynltes
from a 81 law until the expiration of this hVe-
year contract.
The recently declared dividend Of per cent
made by the Brooklyn Union Gas Company mas
not by any means helped the cause OF the trust
with the people at large In the first place. u per
cent is a generous dividend in such hard times as
these even when estimated upon bona fde capi-
tai stock. But il was established before the At
torney General that oneha,f of the capital stocks
of the old seven companies was water, ana tnat
when the combination was effected another lVV
per cent of water added. Thus II was shown
that the actual capital stock, based upon proper
" and franchises, was only about One-quarter OF
the S:;DWDOOO OF stocks and bonds upon wnich
the dividend was declared. 1t would therefore
appear that il the recent dividends had read "a
per cent. Instead Of per cent. they would NOT
have done an injustice TO the financiers back OF
the Gas Trust.
Another element that must be taken into con-
sideration is the fact that $117.OO0 Is due the
company from the city Of Brooklyn FOR gas lur-
nished during 1896 under no contract, ana tnat
this is good as gold in hand. and when added
TO the earnings of the Gas Trust. as 1t apparently
needs to he TO get at actual earnings. it will help
10 swell even the "a per cent.
The Gas Trust, ii is asserted, has adopted
the system Of manufacturing gas which was
used by the Fulton Municipal and several
other companies. and which is known as the
old coal method which was stuck to longest
by the Brooklyn Gas Company. and the so-calied
mixed method. which was used by the Nassau
Company. Professor X. Spice. instructor in
physics In the Girls High School. who is an ex-
pert in the manufacture Of gas. told Tribune
reporter yesterday that ii did not cost more
than one-third as much to make water gas as
to make coal gas. If some Of the old companies
able to thrive and declare big dividends at
81 ~, il will be difficult for the ordinary indi-
vidual TO understand why the gas company
cannot make just as good a profit at about 80
cents now. when it is using the water method in
producing gas.
This water gas" said Professor Spice 'is
produced by passing steam over burning coal
or coke BY this process hydrogen is set free
and the oxygen from the steam combines with
the carbon from the coal coke making car
homie oxide. This latter is the gas that gives
the blue flame. The carbonic oxide Is then i'm
pregnated with decomposed petroleum. which is
n species of acetyiene Acetylene is the illumi-
mating constituent of the gas So the illuminating
quality Of the gas produced depends upon the
amount of petroleum used. In case such as
that in this city in which the gas company has
close relationship with the big oil company.
petroleum should be furnished at the minimum
Of cost. Heating gas may be produced much
more cheaply than illuminating gas. as the de-
composed petroleum does not have to be added.
the simple carbonic oxide gas being used