New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-02-05
CHEAPER GAS DEMANDED.
ARGUMENTS HEARD IN FAVOR OF THE
CANTOR BILL.

ITS AUTHOR. HENRY NJ. CROSS AND PROFESSOR
BEMIs GIVE FACTS AND FIGURES TO
SHOW THAT THE PRICE IN THIS
CITY is EXoRBITANr
Albany Feb. f--The Senate Committee on Miscel-
laneous Corporations this afternoon gave a hearing
on Senator Cantcrs bill making the price OF gas In
New-York City 81 a thousand feet and providing
for a Municipal Gas Commission TO supervise the
operations Of the gas companies far as they con-
cern the public large number Of interested per-
sons present. including William Dykman. for
the Brooklyn Gas Company; Frederic r. Coudert
for the Equitable Gas Company, of New-York
Franklin Bartlett for the East River Gas Com
pany and Henry f.. Rowland, for the Consolidated
Gas Company. In support OF the bill there APP
peared Professor T.. w Bems. Henry NJ Cross and
Senator Cantor. There was so large crowd that
The committee adjourned from the committee DOM
10 the Senate Chamber.
Before any one was heard upon the bill Senator
Cantor said that he would propose three amend
ments the first comforting power the Municipal
Gas Commission TO investigate the cost Of gas. the
second test the quality Of Illuminating gas, and
the third to prevent the watering of stock by pro-
viding that there shall be increase in the capital
stock unless the money shall be actually needed for
improvements.
Senator Guy proposed amendment which
should make the bill cover the city annexed dis
trict of NewYork. He spoke briefly In favor Of the
bill, declaring that the people OF the metropolis
demanded not only cheaper gas. but govern
mental supervision. which would insure that they
were getting what they paid for He believed that
there not meter in existence which honestly
registered the amount OF gas consumed.
Senator Cantor said that there had been no gas
legislation except that which was friendly to the
gas companies since 1885, There had been a great
and steadily increasing public demand for cheaper
since the combination OF the gas companies.
Since 1886 there had been great increase in the
the receipts OF this great monopoly while the cost
OF production has decreased In November last all
competition was wiped out by a combination and
agreement among the gas companies, and by
singular coincidence gas bills began increase.
until to-day they were almost much tho rent
of Of the poorer families. II investigation
made 1t would be found that gas bills to-day
were higher at 81 . thousand feet than when the
price was 81 10. simple bill to reduce the price of
gas was. therefore. enough. 1t necessary
have some governmental supervision over the gas
companies, with power investigate their april
ances and methods
DO ! understand you Senator. to charge that
illegal combinations exist control prices?" IN
CURED Senator Malby
That is the charge make now. and which has
been repeated many times, end which is proven
by the disappearance Of the canvassers from our
streets coincidently with the destroying Of compe-
ttion and the increased bills WAS Senator Cam
tors reply.
Senator Malby said that while this bill provided
for 20 per cent reduction in price the highest
dividend paid by the Equitable Gas Company
which only u per cent. Senator Cantor an
swered that the dividends did not Indicate the
earnings. all the companies were ping UP a
great surplus
Henry NJ. Cross said he represented several New
York gas consumers. He would propose amend
ment which would provide further reduction In
price OF five cents each until the price should
be 20 cents. The passage Of Senator Cantor's bill
would cause saving to 10000 gas consumers Of
an amount approxmatng 100000 The increase
in the consumption of gas would be enormous. and
in few years gas would supersede coal for all
purposes except for generating steam.
he favored the commission feature OF this BILL
people believed il was needed. The people had
been obliged TO pay great dividends on watered
redofds Which he said, SLOWED that the companies
comprising the CONSOLIDATED Gas companies had
been increased from the earnings to 81 10000 and
Companies since their organization had paid ST.;
p'.ro in dividends, an excess Of $S,0VooO over 10
10 them more than two and one-half times the
amount Of aeir investment and besides had re-
lie said the New-York companies were now sell
about l2,OO.OOOOO cubic feet of year. He
estimated the cost Of the manufacture OF gas at 20
cents thousand feet the cost OF distributing at 10
allowed five cents extra, bringing the entire cost up
10 60 cents. He said in Boston gas was sold 6s
cents and in Cambridge 81 cents. In regard
the salaries paid, he estimated that the 'ambri1ge
company paid $1,000 annually and the -onsold tted
Gas Company $1,000 annually This meant ~ cents
a thousand feet Of gas in Cambridge and one cent
thousand feet for the Consolidated Company.
From all the figures which he presented, he believed
that gas could be sold 81 and the Consolidated
Gas Company still make profit of per cent the
Equitable 10 per cent and the Standard OH per cent
their capital stock.
In defence of his proposition to reduce the price
five cents each year after the first year. he said
that the companies might increase their output 10
or % per cent without increasing the cost. Mr.
Benedict, who supposed to be the con ;rolling
interest in the Equitable Gas Company, in New
York mad made statement to the NeW-York Stock
cago "A cents. and that IL sold at 81 ~ under
contract TO reduce IL five cents thousand each
year. Two companies were now laying lpes
there under contract to sell gas 81 not more than
90 cents thousand feet.
Professor Bems. of Chicago, the next
speaker He read evidence presented In an investi-
cation conducted in Minneapolis and also in Wash
,nrton II was then developed that gas could be
sold for 80 cents in Mnneap polls and 50 cents in
that gas could be produced in New-York much
cheaper than in either Of those places. because OF
The natural advantages and cheaper prices for ma
-ertals He presented computations to prove that
pas could he produced in NewYork AT "a cents, and
no believed that 80 cents reasonable estimate
Of the cost, He was satisfied that gas could be
orod,,ced al a rood profit 10 cents In NewYOrk
II the city owned its own gas plant out was Wiling
row 10 compromise basis OF 81.
a, the conclusion Of Professor Bemis's argument
.be hearing was adjourned until two weeks from
to-day when counsel representing the gas COM
panies will be heard