The sun., 1897-12-24

the existing gas companies to earn or pay
annually an amount sufficient to pay
more than q per cent. interest on these
$l4, 900, 600 New England Gas 4 Coke
Company bonds. Aside from what the
laws allow, the companies are only earn
ing enough to pay 2A per cent. annually
on the $l4,O0O,00O bonds, and cannot
earn more without further taxing the
consumers Of gas. And if more than the
present amount allowed by law was ad-
mitted to be earned, the companies
would be compelled to return such ad-
ditional earnings to the consumers by
means of an enforced reduction in selling
price.
The New England Gas and Coke Com
pany has NOT acquired control Of
the Boston, South Boston, Roxbury and
Bay State Of Massachusetts, Gas Com
panies, and it will never be able to.
1t becomes necessary because Of my
foregoing unqualified assertions to give a
statement of the facts which have led
up to the present gas situation, many Of
which have never before been disclosed.
Boston Gas Situation.
Originally there were in the Boston
gas field the Boston, Roxbury, South
Boston and Dorchester Gas Light Com
panies. In 1887 j. Edward Addicks and
associates created the Bay State Gas
Company, of Massachusetts, with full
rights to parallel all the pipes of the four
companies above named. After this COM
pany had expended several millions Of
dollars in the erection of works and lay
ing of pipes, the owners of the Boston,
Roxbury, South Boston and Dorchester
Companies sold the entire capital stocks
of their respective companies to Mr..
Addicks and his associates. Substan-
TALLY all the stocks of the Boston, Rox-
bury and South Boston Companies, t.
gethcr with the capital stock Of the Bay
State Company of Massachusetts,, were
subsequently transferred to the Bay
State Gas Company Of New Jersey, and
by it (the Bay State Gas Company Of
New Jersey transferred to the Mercan-
tile Trust Company of New York, to be
held in trust by it (the Mercantile Trust
Company as security for the payment of
$l2,OD,OOO Boston United Gas bonds, is
sued by the Bay State Gas Company Of
New Jersey. The entire capital stock Of
the Bay State Gas Company Of New Jcr-
sey was thereafter transferred to the Bay
State Gas Company Of Delaware. in con-
sideration of an agreement whereby the
Bay State Gas Company of Delaware for.
ever guaranteed to make good any de-
ficits in the earnings received from the
stocks of the companies held by the Mer.
camille Trust Company, up to an amount
necessary to pay interest and sinking
fund on the $l2,0oO,OOO Of the Boston
United Gas bonds.
Under this trust Iagrement the Bay
State Gas Company Of New jersey is the
absolute owner of the stocks of the four
companies deposited with the Mercantile
Trust Company. And as the entire
stock OF the Bay State Gas Company OF
New Jereey is owned by the Bay State
Gas Company of Delaware, it is the abso.
lutte and irrevocable owner of the four
companies whose stocks are held by the
Mercantile Trust Company, and through
such ownership it, the Bay State Gas
Company Of Delaware, is entitled to the
control, banagement, and all benefits
coming from the four companies whose
stocks are deposited with the Mercantile
Trust Company And, in addition, it is
entitled to actual possession of all of said
stocks, when, by the operation of the an.
nual sinking fund, the bonds have been
redeemed, or when by the sale of
property, or otherwise, they
have been paid off; or
when the Bay State Gas Company Of