The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-10-30
TROUBLE IN GAS CIRCLES.
Claims Made That the s. L. & o. Gas
and E. L. Co. Is Not Paying For
Gas.

For some time past there has been con-
siderable dissatisfaction expressed re-
garding the way that Natural Gas stock
has been assessed and also of the way
that these securities have slumped of
late, especially so considering the fact
that there has been greater consump-
ton of gas during the past year than
ever before, and at the same time the
stockholders have been called upon to go
down into their pockets 10 make good
a deficiency in the way of assessments
This condition of affairs has been 60
ing on for so long time that stock
holders have become suspicious that
everything is not as it should be, ana an
investigation has developed the fact that
from Feb. l. 1896, to Oct. /, 1896, the Salt
Lake & Ogden Gas & Electric Light
company has been furnished Sl,O0O,OOo feet
of gas by the New American Gas, & fuel
company, for which it has never paid
cent, and that prior to that time IL is
alleged that the gas company furnished
the electric light company with 2o,UOOOo
or 50,WO.O0O feet, for all OF whlch tnere
never has been a settlement, and IT IS
claimed by the gas company that II II
had received payment for all of the gas
that it had furnished the electric light
people. that it would now be paying divi-
1t is claimed by the gas company that
the electric company is adverse to max
ing settlement for some reason or otner
ana IS more imam likely tldl ii iOl
an accounting is soon to be planted
against the electric company at an early
date, and a meeting of the board OIL dl-
rectors of the gas company is booked for
today or tomorrow for the purpose OF
taking some action looking towards en-
forcing a settlement; and the stockhold-
ers are anxious that this should be done,
and they will lend their aid as far as
is that the producers should not receive
something more than wind for the gas
with which the city is partially lighted
and heated.
When the two companies first began
doing business together, The Herald is
informed that the electric company fur
nished the gas company $4,000 with
which to meet its indebtedness, in re-
supply the electric light company with
gas until this amount was repaid at the
rate of so cents per 1000 feet, after which
the electric company was to pay the gas
company at the rate of 1I1z cents per
1000 for all the gas delivered to it; but,
for some reason or other. although the
gas comDanys meters show that 1t mas
furnished something over 62,00OOOO Feet,
admit that the debt is extinguished. The
gas company, however, hold that the
claim Of the electric company has been
met in full. and that the ELECTRIC com
pany is now owing 1t over $4,000, which,
if paid. would enable the company TO pay
dividends instead of levying assessments.
Ii is a well known fact that the use
Of natural gas has greatly increased in
this city during the present year, and
that besides being used for lighting, 1t
has been utilized for variety of other
purposes; and yet, although the gas tcom-
pany claims that 1t has furnished the
electric company with 31.0O0,OO0 feet of
gas from Feb. !, 1896 to Oct. l, 1886, the
electric company is only willing to credit
the gas company with $S,274.62 for gas
used from Feb. to Aug. l.
II ic claimed that fhp electric. COM
pany disclaims using the amount of gas
charged to it. and alleges that large
percentage of it was lost by leakage
while in transit from the wells at Lake
Shore to this city, and yet the gas COM
pany states that it was agreed in the be-
ginning that the pipe line should be per-
feet and that the electric company was
to guarantee the line from loss by leak
There is every reason to believe. i:
street rumor is any criterion to go by
! than pleased if the wells at Lake Shore
would fail entirely, as the increased use
| of gas is making great inroads into the
lighting by electricity, the generation ane
the company than the sale of gas, and ii
| is believed by many that the late. scare
regarding the reported failure of the ga:
wells was due to rumors circulated by
parties who are interested in the cesSa
| ton of the gas industry, and these ru
mors were, in fact, without any reason
able foundation.
The officers of the natural gas com
pany have been asked why it was thai
| II did not turn the gas off, if the electric
company was not paying for it; and the
answer has been that if this was done
that there was danger that the city
might take away its franchise, and thai
this would then place the company in g
worse position than it now occupies, anC
| it is believed that it is on account OF
| this peculiar condition of affairs that the
| al 70 NAV with L
| the same as cat does with a mouse.
H. L. Driver IS also having troHblt
with the electric company in the way o
collecting amounts due him for gas. fur
| nished. and it is understood that he i
likely to bring suit for the same.
For about two hours yesterday Their
was no gas in the mains. and users wer
| greatly disconnected.