The Portland daily press., 1897-05-18
The Gas Company's Surplus.
To the Editor of the Press:


the Gas Co. against the distribution to
the stockholders of any portion of the
LARGE amount of surplus earnings now in
the company's treasury, published in
vour issue of Saturday, would perhaps
under existing circumstances have caused
some surprise in the community had it
not been well known that he had bitterly
opposed every extra dividend that has
been given to the stockholders
What enormous sum the surplus would
at this time have amounted to, had his
notion prevailed, perhaps the Lord
knows.
The amount and even the existence of
a surplus fund was for ma ny years care
fully concealed, even from the stockhoId-
ers, no mention was made of it in the
annual report, it did not appear upon the
books, and all inquiries even by directo rs
were frowned down.
That the financial affairs of the COM
pany were well managed, and that a large
surplus fund was constantly accumulat-
ing (aggregating not less than 500, 0OO)
is now well known, and the stockholders
are grateful that their agents have not
followed the examples of SO many of their
fellow fduc1arles, and are still living at
home
In 1882, SO and '84 extra dividends were
extorted by the stockholders from re-
luctant board of directors. None have
been paid since; and it now appears that
there is on hand surplus of over $500 >
Geo.
This large surplus is a matter of public
interest and Importance; for every citizen
through their municipal government
holding 100 shares, Is stakeholder in
this company.
The city, burdened just now with some
heavy extra expenditures, has asked for
its share of a portion of this large sur
plus; and large numbers of stockholders
would be glad in the present depression
| of business to receive their share.
| And why should not these calls receive
| this Gas Company appears in the public
prints and protests against those whose
servant he is having any portion OF the
accumulated earnings of their invest
ments.s His communication is more nota-
BILE for what it omits than for what it
| BILE reason for holding on to the whole OF
that fund; those he pretends to assign
are too thin to hold even gas.
What need has the company for this
$500, 900 or more? All said to be inves ted
in stocks and bonds. 1t is not pretended
that any material portion, if indeed any
portion, is needed or used in the business
of the company. 1t is not, and cannot
be denied that one half of this surplus
would be an ample fund for any probable
emergencies or extra improvements
| The president gives two lawfully wealS)
reasons for keeping in the companys
hands the whole of this $500, 900. One is,
would put perpetual end to any further
reduction in the price of gas. Who asks
for any further reduction? Every reason
able man in the community knows that
81 % per thousand feet is low price for
so good gas as this company furnishes.
However this may be, it is difficult to
perceive any connection between this ex
orbitant surplus fund and the price Of
gas, except that the existence of this sur
plus wOnld seem to prove that the past
rates to consumers have been too high.
Can it be the wish and intention of this
company Ito accumulate d surplus large
enough to enable it to give away its gas,
and gratuitously furnish chandeliers to
burn it? Such would seem to be legiti-
mate appendix to a surplus fund OF . mil
| lion or two.
The other reason is, that the withdraw
al of any portion of this surplus fund
might prevent the company's paying even
| per cenU ulVluonuS. InlS Is dlUOSeUner
too thin, Mr.. Daveis. You don't believe
any such thing, any more than anybody
else does. Hold it up and look at it.
This company has for the last 25 years
been paying to its stockholders regular
annual dividend of 10 per cent, and in the
same time has accumulated surplus of
over 500, 900, and now having $500, 900 of
that surplus in its treasury, you under
take to tell the stockholders that dis
tributior of one half that surplus Oeaving
| $780, COO still in your hands, would or
might reduce the annual dividend below
per cent. That pretended reason is too
thin; it won't hold even gas.
The president processes great regard for
the consumers. But did it ever occur to
him that the reduced tax rate to which
this extra dividend would contribute,
| would benefit the consumers much more
than reduction Of few cents per thous-
and feet in the price of gas.
| The stockholders in these days of bust
ness depression would find the extra divi-
dend very acceptable. They have legal
right to all the net earnings of their in
vestments, leaving in the treasury a reas-
enable surplus for all probable contingen-
cies. j. r.