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

OF bnelr property and HS9eCH, Will noV 10 ~
turned to the Bay State Gas Company OF
Delaware, even IL the Bay State OF Della
ware takes no steps whatever, and simply
waits for tho sinking fund to relieve 1t OF
the obligation and return the profits and
management OF the local companies.
1 have described the condition Of tho gas
situation down to the advent Of the Whit.
ney.McMillan syndicate or New England
Gas & Coke scheme, and before treating OF
this matter, I will briefly summarize the
situation as it then existed.
nay state Control.
The Standard Oil party were In control OF
the entire Boston gas situation by the ab.
solute ownership OF the Brookline and Dor.
chester companies and the temporary man
agemcnt of the Boston, South Boston, Rox-
bury and Bay State OF Massachusetts, com
panies. The Bay State Gas Company Of
Delaware absolutely owned the Bos-
ton, South Boston, Roxbury and Bay
State of Massachusetts companies,
and had the unqucstioned right to
take back the management OF them
at any time by settling in any way with the
$9,0O0,0OO Of Boston United Gas bonds,
first series. The four companies owned by
the Bay State Gas Company Of Delaware
were earning sufficient to pay all fixed
charges, and the Brookline and Dorchester
Gas companies, through and by the con.
tract with the Boston Gas Company,
were enabled to earn all fixed charges
and 10 per cent. dividends upon their
respective capital stocks. The Bay State
Gas Company of Delaware was rapidly
placing itself in position by the sale Of its
increased capital stock, and in other ways,
to take back the management of the four
companies owned by II, and purchase from
the Standard Oil party it's Brookline and
Dorchester Companies. The four compa-
MES belonging to the Bay State Gas Com
pany Of Delaware owned property, real
estate, ETC., at this time to an amount Of
more than $12, 600, 900. The equities in
the four companies belonging to the
Bay State Gas Company OF Delaware,
over and above the $12, 600 Bos-
ton United Gas bonds, were conserve
lively worth at this time at least St, OO0,-
BOO. There was ut this time and Is now in
operation a sinking fund which would in a
limited time pay Off the $12, 100000 of
United Gas bonds, leaving the $12, 100000
ohu oNcl VI pIOptIUy dhu tho NdiuuDio
franchises free and clear for the Bay State
Gas Company of Delaware. There were at
this time laws in force in the State
of Massachusetts which made 1t i'm.
possible for any of the Boston gas
companies to increase their capital
stocks, or consolidate, or lease each other,
or guarantee each others securities, or to
enter into any working arrangement, the
equivalent of such lease or guarantee, or to
earn from the sale of gas, or otherwise, a
sum more than sufficient to pay fixed
charges and 10 per cent. dividends upon
the outstanding Ss,OOO,OO OF capital
stocks.
Under the then existing conditions the
Boston gas situation might be altered in
two ways: One, to allow things to continue
as they were, until by the operation of the
sinking fund, or otherwise, all the prop rty
of the different companies would be re.
turned to the Bay State Gas Company OF
Delaware; the other, for the Bay State Gas
Company of Delaware to again assum, the
management Of all tho companies by the
purchase. or otherwise. of the Brooklinc and
Dorchester companies, and the resumption
of the management Of the four com
panies owned by it. The latter was what
the Bay State Gas Company Of Delaware
was on the eve of accomplishing when there
appeared in the field the Dominion Coal
Massachusetts Pipe Line-Whitney.Mc
MILAN syndicate--New England Gas and
Coke scheme. Before Analysing this com
bination or scheme l wish to express my re
greet that circumstances compel me to place
this combination in the light which thu
facts warrant.
Dominion ConI Company.
The Dominion Coal Company is an over
capitalized scheme, having for a basis
few of the coal mines in the Province o
Nova Scotia, and for an object the float
ing of a vast amount of watered secur
tiles on the public. The Dominion Goa
Company's only right to be mentioned
in connection with Boston gas affair
il, its claim to be able to placo II
the markets of New England a coal a
so low a price as to enable those who handl
it to manufacture illuminating and fue
gas at no cost. (See their official statemen
printed above: "Sale of $500, DOC, 900 fee
of gas at 20 cents per thousand feet, pc
contract, 100000 gross and metz 1 will
pass the Dominion Coal part of this schem
as being unworthy Of serious consideration
Massachusetts Pipe Line.
The Massachusetts, Pipe Line Compan,
represents nothing but a charter procure,
from the Massachusetts, Legislature of 1870
at a large expenditure of money and an TN
limited number of unredeemed promises
1t was originally intended as n complet
consolidation scheme, whereby all the Bos
ton gas companies were to be consolidated
and for the term of 80 years to be absolutel
free and ~unhampered by any of the law
now existing or to come into existence, 70
the regulation and restriction of the MANI
facture and sale of gas. At the time thi
charter was under consideration by tn
Legislature. seeing it's value to the oil
, companies, of which | was Vice-Presiden
> and executive officer. as a consolidate
measure, which they had vainly sough