The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-12-23
THE sun. THURSDAY, DECEMBER 40, 1897.

etitutlon has loaned this large amount OF
lite deposits, and the public are asked to In
vest, do not In fact exist, and the promises
made are impossible Of fulflment. 1t Is
certain that under no conditions can the
bonds Of the New England Gas & Coke
Company ever be worth onc-half OF the
price at which they are offered, or Its stock
ever be worth anything from any opera
tions dependent on the ownership or
control OF the principal gas companies o.
Boston; namely, the Boston, South Boston,
Roxbury or Bay State of Massachusetts,.
The property received for the $12, 900 900
cash which has already been paid is not
now, nor can 1t ever be made, worth, by
any operations of the New England Gas &
Coke Company, one.half Of the amount paid
for 1t by them.
The laws Of Massachusetts,, and the regu-
lations of the Board Of Gas and Electric
Light Commissioner do not permit the
existing gus companies to earn or pay an
nually an amount sufficient to pay more
than 81. per cent. interest on these $14,.
100000 New England Gas & k Com.
pany bonds. Aside from what the laws
allow, the companies are only earning
enough to pay gig per cent annually ON the
SD, 1000, 900 bonds, and cannot earn more
without further taxing the consumers OF
gas. And II more than the present amount
allowed by law was admitted to be
earned, the companies would be compelled
to return such additional earnings to the
consumers, by means of an enforced reduc-
tion in selling price.
The New England Gas g. Coke Company
has NOT acquired control Of the Boston,
South Boston, Roxbury and Bay State OF
| Massachusetts Gas Companies, and 1t will
never be able to.
1t becomes necessary because Of my fore.
| going unqualified assertions to give a state
ment 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 Companies. In
| 1887 ]. 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 company had expended
several millions Of dollars in the erection
of works and laying 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. Substantially
all the stocks of the Boston, Roxbury and
South Boston companies, together with the
capital stock of the Bay State Company of
Massachusetts,, were subsequently trans
ferred to the Bay State Gas Company Of
New Jersey, and by it tthe Bay State Gas
Company of New Jersey transferred to the
Mercantile Trust Company Of New York,
to be held in trust by it (the Mercantile
Trust Company, as security for the pay.
meut of $12, 900, 900 Boston United Gas
bonds, issued by the Bay State Gas Company
of New Jersey. The entire capital stock ofthe
Bay State Gas Company of New Jersey was
thereafter transferred to the Bay State Gas
Company of Delaware, in consideration OF
an agreement whereby the Bay State Gas
Company of Delaware forever guaranteed
to make good any deficits in the earnings
received from the stocks of the companies
held by the Mercantile Trust Company, up
to an amount necessary to pay interest and
sinking fund OH the T12 100000 of the
Boston United Ga bonds.
Under this trust agreement the Bay State
Gas Company of New Jersey Is the absolute
owner OF the stocks of the four companies
deposited with the Mercantile Trust Com.
pany. And as the entire stock of the Bay
State Gas Company of New Jersey is owned
by the Bay State Gas Company of Delaware,
it is the absolute and irrevocahle 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 enti'
tied to the control, management and all
benefits coming from the four companies
whose stocks are deposited with the Mer
camille Trust Company. And, in addition,
it is entitled to actual possession of all OF
said stocks, when, by tn operation of the
annual sinking fund, TIL bonds have beer
redeemed. or when by the sale of property
or otherwise, they have been paid off; oil
when the Bay State Gas Company of Della
ware, by purchase or otherwise, acquires
them. Under this condition of affairs the
Bay State Gas Company of Delaware con
trolled and managed all the companies il
the Boston gas field above mentioned
and from their earnings paid inter
est upon the Boston United Gas bonds
and from the surplus earnings pale
interest upon its own bonds. ant
!, dividends upon its stock, until the adven'
|, into the Boston gas field Of what Is popu
larly known as the Standard Oil party
This party created an opposition company
the Brookline Gas Light Company, and in
stituted a competitive warfare which
amongst other things, reduced the net earn
, ings of the local companies to a poin
which created a deficit of a very larg,
8 amount in the earnings necessary to pa.
| interest and sinking fund on Boston United
Gas bonds, which deficit was supplied b.
, the Bay State Gas Company of Delaware
/. This warfare terminated in May, 1896, un
der the following conditions, l PERSONAL,
conducting the negotiations on behalf o
8 the Boston and Bay State Company:
Q standard oil Sale.