The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-12-23
THE HOLDERS OF BOSTON UNITED
GAS BONDS, uNDERWRITERsoFN NEW
ENGLAND GAS & COKE COMPANY
BONDS AND STOCK, BOSTON CON-
SUMERS OF GAS, THE BOARD OF GAS
AND ELECTRIC LIGHT COMMISSION.
Frs AND THE INCOMING GENERAL
COURT OF MASSACHUSETTS,:


cause to DO procured. an execution OF such un-
derwriting agreement by persons, firms or
corporations satisfactory to tho Trust Com
pany, whereby such persons, firms or corpora
tions shall agree to take the entire amount OF
said shares of stock and bonds Of the New
England Company 80 to DO delivered to the
Trust Company, upon the terms set forth in
said underwriting agreement.
This agreement shall not become effective
until such underwriting agreement shall have
been duly executed and delivered to the Trust
Company. and when tho Same shall have been
executed and delivered the Trust Company
shall be. and IS hereby authorized and en-
powered to deliver the shares Of stock and
bonds mentioned therein to the several per.
sons entitled thereto under said agreement,
as they shall become entitled to the same. and
to apply the moneys received Hereunder to
the payment and satisfaction Of tho said loan
Of $12 900. 900 and interest.
". The Improvement Company shall have the
right, upon payment Of the interest upon said
loan. to extend said loan for q period Of six
months from and after August /, 1893. upon
delivery to the Trust Company Of shares OF
tho capital stock Of said Now England Com
pany to the amount Of Blk hundred thousand
dollars, par value.
IN WITNESS WHEREOF
'NAemOfhnoum IN RELATION 70 the Fufchnho
or tho Boston Gao Companies"
The New England Gas & Coke Company has
purchased. as appears In the underwriting
agreement. practically all tho stock OF the
Brookline. Dorchester and Jamaica Plain Gas
Light Companies; WHICH PURCHASE
CARRIES WITH IT THE CONTROL OF
THE BAY STATE GAS COMPANY OF
MASSACHUSETTS. THE BOSTON GAS
LIGHT COMPANY, THE SOUTH BOSTON
GAS LIGHT COMPANY. AND THE RON
BURY GAS LIGHT COMPANY; BRIEFLY
ALI THE GAS COMPANIES IN THE
CITY OF BOSTON.
The PURCHASE OF THE COMPANIES
above named, together with the charter of the
Massachusetts Pipe Line Company and tho
license of the by-product coke ovens Including
the building Of the ovcns). COST $l4, 900, 900;
and in said purchase 81. 900, 900 OF the securi-
ties of the company wero used in payment.
The remaining Sl2, Ooo.O0o required cash has
been loaned upon tho company securities by
The Coutral Trust Company Of Now York. for n
period Of eight months from Dec. l, with tho
privilege on the part of tho New England Gas
& Coke Company Of an extension OF tho loan
for six months. The writers receive par
of bonds, with q bonus OF 10 per cent. stock.
The Gas Companies in tho proposed
purchase earned + for the year
ending June so, 1897, in excess Of. H46o, 900
Estimated profit on Coke and on Gas
Residuals, Gas, 500
Sale OF 9, 800. OOO, 900 feet Of gas at 20
cents, per contracts. ............... 500,o00
Saving by ise of coal-gas by Brook
line and Dorchester Companies at
10 cents on 200, uOO, 900 feet ........ 10000
Total net profits. 81, DOS, 500
Interest on the $4,000. 600 bonds to
be underwritten and the 81. 900. 900
used in purchasing gas properties.
patents and franchises. .............. 100000
Good TO the stock ............... $59S, 500
As will be seen from the above statement of
earnings. based upon the engineers figures.
there will be applicable for dividends n sum
equal to approximately 4 per cent. upon the
stock ($l4, 600, OOO) outstanding as soon rs the
ovens can be finished, which will take about
nine months.
The question as to the issue of bonds has not
been definitely determined, BUT THE PLAN
CONCENTRATES HAVING THEM
BROUGHT OUT BY TRUST COMPANIES
IN THE CITIES OF NEW YORK, PHILA'
DELPHIA AND BOSTON.
CInims or the New England Gas q Coke Dom.
pnny.
BY these documents 1t appears that al
aggregation of men, calling themselves the
New England Gas & Coke Company, have
put afioat $14 600, 900 bonds and $17, 500,
900 stock, upon which they have borrowed
from a New York Trust institution $12,
OOO, 900 cash.
1t appears that they are asking the In
vesting public, through banking houses
and otherwise, to invest In these bonds al
one hundred cents on a dollar. 1t appear
that they promise that the New England
Gas & Coke Company shall earn and pay
from sales Of gas to the present consumers
in the city of Boston, and upon their pres
ent consumption $500, 900, 900 feet
81, O5O,O 900, plus $24s. 800 from the sale o
coke and other products), 8 per cent. on thu
$4,000, 900 bonds and A per cent. on tn,
$17, 500. 900 stock.
1t appears that the entire security ant
assets behind these $14,000,00 bonds and
the SIT, 800, 900 stock are certain stocks
bonds and evidences of indebtedness of tn,
old Boston gas companies; and whateveI
new property may be created with 81, 900,
900 to So, 900, 900 cash.
1t appears that the total of the stock an,
bonus puTCuubcu w tuCSC pCopic III pu
behind the $14, 600, 900 bonds and $17 300,
600 stock represent only % per cent. of tn
existing stock, bonds. and Indebtedness O
the old Boston gas companies, and that tn
new property to be created will comprise
lot of marsh lands in the town of Everett
and some coke ovens to be erected thereon
1t appears that they have obtained tn
control of the Boston, South Boston, Ro1
bury and Bay State of Massachusetts Ga
Companies 0he companies now ownin
over three-quarters OF the gas property c
Boston, and doing over two-thirds Of Boz
tons gas business, not by purchase, or th
expenditure of n dollar of the proceeds {
the sale of these $14,OOO,OOO of bonds an
ST., 800, 900 stock, but in some m~iraculou
way not set forth.
1t appears, from other official and sem
official statements, that the earnings aboy
mentioned are to be secured without an az
ditional tux on the consumers of gas.