The age-herald., 1897-11-13
Profits m Gas.

Chicago is also stirred up oyer the gas problem. The Record of that city has the following interesting editorial:
 The probable sale of the Universal and Mutual Fuel Gas companies to the Peo- pls's, of this city, for $5,600, coo, of which about $3,00O,000 is to be cash and the rest bonds of the Peoples company. worth about $2600000, calls attention to the enormous profit in the gas business of Chicago. The Mutual Fuel company, of Hyde Park has spent only the $1 500,000 r. presented by its stock, or per haps even less than that, as the stock may have been sold to some extent, be- low par; and the stock of the Universal Gas company is not much over s1,5OO,- oOD, while nsither company has issued any bonds.
 The owners of these two companies are therefore going to obtain at least about $176 for every S10O actually invest ed. Yet the Universal works have only just been built, and the Mutual Fuel company, which was started in 1889, has paid good dividends almost from the start, although it has sold gas all the time for $1, when used for Illuminating purposes, and P cents when ussd for fuel purposes.
 These two companies have been a con- spicuous illustration of the cheapness with which modern gas works can now be built, and proof therefore. of the enormous amount of water in the stocks and bonds of the Peoples Gas company. The Mutual Fuel company had an out put in 1896 of about 1000 feet of gas for every $2.15, or thereabouts, of stock out standing. On this basis the capitaliza- tion of the Peoples company should not exceed $15,000000 instead of reaching the enormous sum of S51 ,346, 900.
 The Universal Gas company, in order to buy land and build works thoroughly up to date, with 40 per cent as much ca- pacity as that of the Peoples company, formerly known as the gas trust, was obliged to issue little. if any, more than s1.500o00 worth of stock, which indicates that the entire manufacturing capacity of the trust can be equaled, aside from mains maters and services, by 5000, 900. The Peoples company will undoubtedly issue stock and bonds equivalent to what 1t pays for the two new companies. thus saddling upon the people of Chicago fully $2.50o.000 more of securities that represent no money spent on tangible assets. Is it not about time for the people of Illinois to follow the sensible practice of Massa chusetts and prohibit all further issue of stocks and bonds by street railway, gas or elsc- trio light companies, save where the money is actually invested in new plant ? Is 1t not also time to prohibit as does Massachusetts, the disposal of these new securities otherwise than at open sales to the highest bidder?
 With the enforcement of such a law. in the hands of a proper city commits sion, composed of the mayor, the corpor- alton counsel and the commissioner of public works. any further injection of water into the gas stocks of the city would be impossible.
 : IL is reported on very good authority that the Mutual Fuel company of Hyde Park earned $290. 900 last year. or over 40 cents for every 1000 feet of output. even at t,ue price of 72 cents for gas for fuel purposes and q for illumination.
 When the peoAle of the large cities find out how little it q fsts to- establish plant