Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1897-09-08
cossLEo Gas.
Belief that Standard on Monopoly Has Done
Il at Handsome Profit.

'.~''S~SsssS sVses
The gas supply of nearly every I'M
| portant city in the United States s
directly or indirectly controlled by the
Standard Oil Company, which has no.
Only made tremendous profits by issues
of new securities OF gas companies and
the increase Of the prices OF these Sc
curities, but has provided a permanent
cash market for nearly $4,000, 600 barrels
of its own product which is unavailable
fcr general commercial purposes says
the N. Y. Times. The processes OF ac-
QUESTION have been SO gradual, so
varied and so variously and cqeverly
masked that the general public, while
learning from time to time of individ-
ual captures, does not understand the
full significance of the results Of the
transactions. In the refining Of petro-
leum a number OF materials remain
after the extraction of the oil suitable
for use in lamps, which are utilized by
scientific methods for various pur-
poses. One of the most important of
these is u kind of naphtha too danger
Gus for general use because Of it's ex-
plosive tendencies, but available when
handled in large quantities for tbs.
manufacture of water gas. It's cost is
virtually nothing. 1t is not even bar
relied, as 1t is shipped in tanks or disl
tr.5uted through pipes. 1t is sold at
from so cents to 81 a gallon, according
TO the freight paid on it. Nobody out
side the oil companies knows what the
profits on 1t are. No intelligent esti-
mate places this profit below 20 per
cent, and some estimates are as high
as so per cent. To secure this profit,
however, market must be found, and
il is supposed that the first and most
urgent inducement fer the acquisition
of control of gas companies by the
Standard Oil Company was to assure
this profit.
In New York city the consolidation
of gas interests has been in progress
for months. Brokers and investors
have put money in gas securities on
the assumption that the consolidation
Is fact. and on the assumption specu-
latior is based. The situation, as it is
understood In Wall street, is that t1e
Standard OH Company virtually con-
trolls the East River Gas Company, has
an understanding with the Mutual. a
close alliance with the Consolidated.
has bought enough of the stock of the
Standard 10 capture that company
whenever it is needed. has made much
progress in the capture of the Equit-
able ard already owns the Central
CL.on. The Standard Oil Company
owns Brooklyn SO far as gas is con-
ccrned, and The securities of the con-
aolldated companies were increased
from s14,00o.o00 to S21 100000 tn,
profits of the deal were estimated a,
the time at from $4,000, goo to IS. 00O, 00G.
Roston had IA gas companies MIR.
Addicks began the work of combining
them. The Standard Oil Company
swoupej down and seized the work
from his hands. The IA companies ana
the Brookline company in addition
have been united. with William Bart
lett, protege of Mr.. FVagler of the
Standard. at their head. ana MessrS
Rogers. Rockefeller and Moore holding
large blocks of the securities. In Chi
caso a fight Of ten years has ended in
a victory for the Standard Oil Com
pany. Nobody can prove. but every
body believes that 65 per cent of tne
securities of the Chicago Gas Company
are owned by the Standard Oil Com
pany or its Western connection in gas
interests in Ohio. including William
Andrew. one of the original Standard
Oil Company. l.. V. Hardness, its frs,
vice president and others. The stock
of the Laclede Gas Company of ST.
Louis sold here in January, 1896, at
lSA. 1t rose to 80 in April. but on the
last day of the year was quoted at "a.
Now it is selling at 40, because of the
general conviction that the Standard
Oil Company owns it and it's perpetual
exclusive character. Somebody has
been buying its stock, but where the
accumulation has gone to is a mystery |
Probably the brokers who bought do
not know who their real customers are. |
The street is convinced. however, that
the Standards hand is there and the
same conviction prevails at ST. Louis.
Mr. Addicks now controls the gas
business in Buffalo and Detroit. He is |
Tn friendly terms with the Standard |
Oil Company, if not directly associated |
with it. Since he was compelled to |
surrender to it in Brooklyn and Bos-
ton, it has made no more fights against |
him. He buys its naphtha The United |
'''' AiiiPl o'ChiSHt SoIHIdHy Oh I'nli3- |
delphia owns the gas plants of 10 cities |
OF this country outside of those |
ramed. Clement A. Griscom, president |
OF the American Steamship Company |
OF Philadelphia, is manager of the
Warden estate, which is the largest |
holder of United Gas Improvement
stock. The same estate holds $4,000. 000 |
OF Standard Oil certificates. Mr. Girls
com is director of the Gas Improve
inent Company and is it's largest
shareholder. The United Gas Improve
ment Company is the largest customer
Tor the naphtha the Standard Oil Com
pany has, taking 100000 barrels of 10
gallons each every year.