The herald., 1896-03-24
.A RATE WAR IS PROBABLE
NEW GAS COMPANY TO START IN THIS
CITY
Wealthy Eastern Capitalists Are Backing the
Concern, and They Promise q Reduction
In the Price of Gas-Something About 1t.
Tho Details

What may prove the first aggressive step
of d promised war of rates in this city, was
made last Saturday when the Metropolitan
Gas company filed articles of incorpor-
alton with the county clerk. This is the
first open move upon the lines of the old
concern, the Los Angeles Lighting COM
pany, but those in position to know assert
that others will follow.
There can be but one result from the
entrance OF a new gas company into the
and the old concern. The public will be
the gamer, as it means big reduction in
the present rates asked for gas.
The Los Angeles Lighting company has
had a monopoly of gas and electric light
ing in Los Angeles for years past, and have
charged rates which are high compared to
those asked in other cities. At present it
is $1.9O per 1000 cubic feet. The new
company proposes to offer it's patrons re-
duction of 55 cents, or $l.35 per 1000
cubic feet. Propositions Of this character
are not unknown in Los Angeles, as
OH many occasions people represent
ing themselves as capitalists have asked
the council for frar chises and then failed
to come to time, the promised relief to the
people thus falling to the ground. Appli-
cations for gas, electric, street car, tele-
phone and various other kinds of fran
chises have been made, but all have come
to Taught. Each of the promised compa-
cts, telling who was behind the scheme. the
reforms tney would effect, and then fell
down most ridiculously. These continued
failures have made the people suspicious.
The new company goes TO work very
differently from these previous methods,
and Its managers act as though they meant
business. After the preliminary steps of
interesting certain local capitalists we're
taken, an office was secured in the Slim
son block and an active though quiet cam
paign begun. Mr.. Datus &. Smith was APP
pointed manager. A large number of cam
vassers was sent through the city for the
purpose of getting the people to agree to
take gas from the new company. The
promised reduction had it's effect. This
work has been progressing for the last two
months, and already large number OF
persons have signed to patronize the new
company both at their homes and places
of business.
The articles of incorporation give only
the names Of the board of directors, who
are George II. BOnebrake, h. j. Woolla-
colt, A. Jacoby, w. J. Washburn, M. T.
Alien and Datus G. Smith, each having
subscribed to but one share of stock. AS
a matter of fact, however. the real back
ers of the company are a number of east
ern capitalists, but regarding their identi-
ty everyone maintains the utmost secrecy.
All that can be learned is that Henry Z.
Kew, wealthy Chicago capitalist, is at the
head of the concern, but beyond this all is
still. 1t is reported though, that Marshall
Field, the famous dry goods man of Chca-
go, is one of the chief hackers of the new
concern, but MIR. Smith asserts that there
are no grounds or authority to connect Mr..
Field with the Metropolitan company. The
company is capitalized at 81 100000.
Mr.. Smith was interviewed by reporter
yesterday regarding his company's plans.
He said that in all probability things would
be pretty lively for while between the
two companies, bnt he thought that Los
Angeles is big enough to support the pair
even if moderate price was charged for
gas.
I'VE believe" he continued, "that an ex-
cellent trade can be established for gas as
fuel and heat in addition to light, and we
shall pay particular attention to this. We
have not decided yet when to break ground
for the new plant, but expect to be ready
by the end of year to serve gas to pat
rons. There has been no attempt yet to
secure a franchise from the city, as we are
in no particular hurry and prefer when we
! ask for the franchise to present such a list
of signers as will prove that we mean busi-
ness. The bulk of the capital stock Will
be placed in the east. but cannot at pres
ent divulge the names of those interested" !"