The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-02-05
PLEAS FOR DOLLAR GAS.
FRIENDS or C<STOR's NIL HEARD
ny the SENATE COMMITTEE.

M
They Co.tesd That Gas Ga. Bs Prodseee
ut . Froat mt ~ Goats, npd Tbst che
Price L. Kept 10 Ia New York City By
sMouopoiy. watch Destroys Competition
ALBANY. Feb. 4.-Tbe Senate Committee on
Miscellaneous Corporations this afternoon
rave . bearing on Senator Cantor's bill. max
ing the price OF gas in New York city 81 and
providing for n Municipal Gas Commission 20
supervise the operations OF the eas companies
10 far as they concern the public. A large
number Of IN Interested pei sons wsro present. In
GLIDING William Dykmnn for the Brooklyn
Gas Company. Frederic r. Coudert for the
Equitable Gas Company Of New York. Frank
lin Bartlett for the East River Gas Company.
and Henry 4. Rowland for the Consolidated
Gas Company. In support OF the bill there
appeared Prof. w. W. Bemis. Henry NJ. Cross.
and senator Cantor. There was 20 large .
crowd that the adjourned TO the
Senate Chamber.
Before any ono was heard upon tho bill Son
ator Cantor said that he would propose three
amendments; first. comforting power upon tho
Municipal Gas Commission to Investigate the
cost OF gas; second. TO test the quality or IL
luf mating gas. and. third. TO prevent the
watering OF stock by ,roviding:that there shall
be no increase. In the capi,sl-stock unless the
money. shall bc actually needed for: improve
ments. The committee decided to hear those
favoring the bill first.
Stna .or-Guy Grst proposed an amendments to
the bill which.should make Its provisions cover
the north side Of New York city, or annexed
district lie spoke briefly In favor of the bill.
declaring that tho pcople-of the metropolis de-
mandcd not only cheaper gas. but government
al SUPERVISION. which would insure tho fact
that they wer" getting what they pay for. He
believed that-there was not a meter In exis-
tence which honestly registered the amount
o. gas consumed. He thought that the bill
should be more cx plicit In defining the duties
aud powers OF the. proposed. municipal COM
mission.
Senator Cantor said that there had been no
gas legislation except that which was friendly
TO he gas companies since 1885. There had
been q great and steadily increasing popular
demand for cheaper gas Since tho combination
of the gas companies. Since 1855 there has
been q great increase 10 the population Of New
York city. which has increased the receipts Of
this great monopoly. while the cost of produc-
tion has decreased. In Novemb er lst all .om-
petition was wiped out by q combination and
agreement among. tho gas com panies, ana by
a singular nn,, po an.aas 90, gas ga, Siiis a regsn 70 , M.
most as much as the rent of come Of tho poorer
families. IL an Investigation we're made IL
higher at Sl.o5 per thousand feet than when
the price WAS $l.76. A simple bill to reduce
the prize OF gas was therefore not enough. IL
supervision over these gas companies. with mower
TO investigate their appliances and methods.
DO / understand you. senator. TO charge
that illegal oombinHtions exist to control
pricesr" inquired Senator Malby.
has been repeated many tunes. aud which is
proven By the disappearance of ths canyasssrs
ing Of competition and the increased bills"
was Senator Cantor's reply.
,senaur Malby said that while this bill pro
vided fo- 20 per cent. reduction In price tho
highest dividend paid was by the EQUITABLE
Gas Company. whi;h was but ~ per osnt.
Senator Cantor said that the dividends did
not Indicate the earnings. a. al the companies
were pilinS up a great surplus. $1,000,
New York .as consumers. said that no would
propose an amendment 70 the bill. which
would provide a further Reduction In price Of
az cents. The passage Of tho bill. no said,
would cause a saving to 800. 600 gas consum-
one great fundamental mistake was that the
people had been obliged TO Day great dividend,
compiled from the records. which he said
sbowed that the somD.nis: So%pr r.,d the
D0o and had been watsrod TO amount TO $37.
isation have paid se7. ooo. 900 in dividends.
IN excess OF S2s. 0O0. 900 over 10 Der cent.
Them more than two and a half times the
amount OF their investment. and besides had
been given over S37 .00u. 900 In stock which
was now paying 4 dividend of 8 Der cent. He
said tlat the Now York companies were now
pelling about 12. 200. 900, 900 cubic feet Of gas.
He estimated the cost of manufacture Ut xas
cents. renewals and extensions at 10 cents.
and he allowed 5 cents extra, bringing the en-
tire cost up to 90 cents. He said that in Bos-
ton gas was sold at SO cents and in Cambridge
at 81 cents In regard TO the salaries paid. he
ertimated that the Cambridge company paid
Sic. 900 annually and the Consolidated Gas
Company $40. 900 annually. This meant ten
and one cent per thousand for the Con solidnted
Company. From all the figures whi,h he pre-
hented he believed that gas could be sold At 81
and tho Consolidated Gas Company still make
a profit Of 8 per cent, tho Equitable 10 Dor
con-. and the Standard 81 Dor cent on their
capital Itock. In defence of his proposition
20 reduce the price i've cents each year after
he nrst y.al, he said that the companies might
increase their output is or 20 por cent without
prof. Bemis Of Chicago road evidence pro
sentoc IN an Investigation conducted in Mime
apolis and also In Washington. II was then
developed that gaa could DO sold ut o profit of
o por cent. At 90 cents in Min-eapolis and so
cents In Washington. He thought that Ras
could be produced in New York much cheaper
than in any or these places. because of the nat
ais. He was satisfied that Raa c,uld re pro-
duced At q good profit at rs cents In New York
II the city owned its own Res plant, but was
now willing TO compromise on . basis of 81.
Al the conclusion OF his Argument the hear
ing was adjourned until two weeks from to-
day. whom the counsel representing the gas
companies will DO heard. Ok