New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-02-05
flnannal.
To The
CONSUMERS
Of Boston and the
Officials and Holders Of
Stocks and Bonds Of
Gas and Electric Light
Companies Of
Massachusetts:

| Feb. It'll, at II a. m, at the office OF the
Board OF Gas and Electric Light Com
missioners, on the petition filed by
Henry NJ. Whitney, president OF the
Massachusetts, Pipe Line Gas Company,
praying for the approval OF the issue OF
81, 100000 OF stock.
AS the result Of this hearing is OF great
importance to the gas consumers OF Bos-
ton, the officers and directors OF gas and
electric light companies now existing by
authority OF the state, and the holders OF
stocks and bonds OF such gas and electric
light companies, it is for their interest to
attend or be represented at this hearing.
All consumers OF gas in the city OF Bos-
ton believe that the price which they now
pay for gas is based upon the actual cost
OF manufacture, plus fair dividends and
interest on the capital now employed by
companies now in existence, and that IN
the future the price of gas will be re-
duced as the increased consumption and
improved methods OF manufacture re-
duce the cost.
They believe the laws OF the state and
the rules and regulations OF the Board OF
Gas and Electric Light Commissioners
absolutely prevent the creation OF new
stocks and bonds, or the imitation OF those
now existing, beyond an amount needed
for increased consumption.
The officers and directors OF gas and
electric light companies now existing by
authority Of the state believe that it is lnl-
possible for new companies to create
stocks and bonds without that permission
OF the Commonwealth which they have
very properly been compelled to secure
before creating any OF the securities now
in existence, and the investors all over
the United States who hold stocks and
bonds in gas and electric light companies
dong business under the laws OF the
state OF Massachusetts believe that any
stocks or bonds of gas and electric light
companies issued under the laws OF
Massachusetts carry guarantee OF safety
because their creation was supervised
and regulated by the officials of the state
under a system OF laws impossible OF in
Engagement and existing in no other state
in the Union.
The result OF this hearing will prove
whether the belief Of the three classes
mentioned is well founded or not.
The Massachusetts, Pipe Line Com
pany is creature OF the state which OBJ
tanned its right TO exist from the state by
pledging itself to the state that it would
issue 100000 capital stock according
to the laws OF the state for the purpose OF
manufacturing and distributing a new
kind OF gas which could be sold to the
citizens OF Boston at price much less
than that OF any gas manufactured by
any existing gas company. One OF the
laws which this company agreed should
govern the issuance OF its stock was that
the Board OF Gas and Electric Light
Commissioners should pass upon the
necessity and advisablity OF allowing
the issuance OF part or the whole OF the
$1,000,000 capital prior TO its issuance.
One Of the heretofore unalterable Gus
toms or rules of the Board OF Gas and
Electric Light Commissioners has been
that upon the application Of a gas or cleo
trio light company for the issuance of
new stock, there should be given a public
hearing that all interested could know OF
the ACCESSIBILITY OF such issue and enter
protest prior to the issuance, and never
since the existence OF the Board OF Gas
and Electric Light Commissioners has
there been a gas or electric light COM
pany bold enough to evade this test. The
Massachusetts Pipe Line Gas Company
has issued its 81 100000 of capital stock
without the authority OF the Board OF
Gas and Electric Light Commissioners or
any other supervisory arm OF the state,
and has issued it without even requesting
the Board OF Gas and Electric Light
Commissioners to pass upon IT, and has !
used the stock so issued as the basis for
a contract with the seven gas companies |
OF Boston, whereby for 80 years all ALI
thoritv has been taken out Of the hands |
OF the Board OF Gas and Electric Ligh. |
Commissioners TO regulate the price OF
gas to the consumer, and has further
used the stock so issued as the basis for
an illegal gas company or association
which has issued $35,000,000 OF stool,
and bonds without the permission OF the
Board OF Gas and Electric Light Com
missioners or any other authority in the
state, and which have been sold for
sI4,OOO,OOO, and upon which a New
York trust company has loaned $4,000,
900 OF its depositors' funds.
The reason for this action on the part
OF the Massachusetts Pipe Line Gas
Company is the same as that which /
would prompt any gas and electric ligh,