The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-07-20
GAS CONSOLIDATION PLAN.
EQUITABLE DIRECTORS OPPOSE IT;
But CAN'T PREVENT II.

Enough stock Pledged, 1t In Said. 90 Carry n
ThrouGh-some OF tho Equitable Directors
Arc Said to Hold Mere AcetsIeue Than
Equitable stock-suits Over THAT. Maybe.
The dissatisfaction OF the directors of the
Equitable Gas Light Company who had not been
consulted in regard to the recently announced
plan for tho consolidation of that company with
tho New York and East River Gas Company 70.
suited yesterday in n meeting Of tho Executive
Committee OF the company. At this meeting,
which all the members OF tho committee and
most of the directors attended, the notice invit.
ing the stockholders of the company to deposit
their shares with the Central Trust Company for
the purpose OF consolidation with the New York
and East River Gas Company or the sale OF their
shares to a syndicate was considered, and II was
unanimously decided that tho committee and
the directors in attendance should decline, as
stockholders, the proposition TO deposit their
stock, and that, rs directors, they could not rec
ommend other stockholders to accept it. 1t was
found that none of tho directors who attended
the meeting had ever boon consulted in regard
to the proposed consolidation.
The plan is understood to have been arranged
between II. Il. Hollins 81 Co.. representing largo
interests in the New York and East River Gas
Company. and some Of tho larger stockholders OF
the Equitable. J. =. Morgan g. Co. agreed to
form the syndicate which would underwrite tho
over the Equitable and Fast River companies.
Tho syndicate circular has been prepared. giving
Inc new COMPANY, 1t is proposed. shall have
Sl0,ooO.0OO D per cent: bonds. $40, 900, 900
cumulative preferred stock. and 81, 700, 900 com
mon stock. The basis Of exchange contomplates
that holders, of Equitable stock shall receive 225
per cent. in bonds, of the new company. % per
common stock; holders OF East River common
shares getting 100 per cent; in pew cumulative
getting I'D in new preferred.
cate heS eirc@la a4' % Snsy t 9SIh Of ag 3 g MSrR IN th e s ", l.
was assumed in some quarters Yesterday that
the deal for the consolidation had been brought
about by that firm. J.P. Morgan & Co., how
ever simply organized the syndi-
1t was stated on excellent authority that tho
ried through. as enough stock had been pledged
to accomplish that purpose before the notice
Of the Central Trust Company was issued. 1t
OF the Equitable Gas Company have not yet
approved the plan. but 1t is well known, 1t was
company hold but little of its stock, although
some OF tho same directors are largely Interested
in acetylene gas. The story Of the formation Of
THE Sly. One of these companies. called the
pany applied to the New York Legislature
Of ls26 for an omnibus charter allowing it to
skilfully progressed through the Senate. but its
character was exposed In THE Sun. and
suon inaisnaton was aroused that the
bill through the Assembly. The city
authorities. headed by Corporation Counsel
Scott, denounced the measure in vigorous
language. The Equitable Company purchased
the acetylene rights for New York city at a re-
ported cost Of $500 600, but after the explosion
OF the acctylene gas tank in New Haven. by
which a number OF people were killed. nothing
SO far as known, has been done with the rights
30 acquired by the Equitable Company.
There was a report last night to the effect that
some OF the directors of the Equitable Gas Com.
pany propose to bring suit against their brethren
In the Board OF Directors who paid $500. 900 for
the acetylene rights.