The sun. [volume] (New York [N.Y.]) 1833-1916, 1898-02-05
3inAneial.

arm of the State, and has issue1
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 Bos.
ton, whereby for so years all
authority has been taken out of
the hands of the Board of
Gas and Electric Light Com.
missioners to regulate tho 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 $50, 900, 900 of stock and
bonds without the permission of
the Board of Gas and Electric
Light Commissioners or any other
authority in the State, and which
have been sold for $14, 900. 900, and
upon which a New York trust COM
pnny has loaned $12, 600, 900 of its
d~epositors' 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 light company
in tho State which knew that a
public hearing given by the Board
of Gas and Electric Light Com
missioners for the purpose of as
pertaining the necessity or advisa-
bility of allowing the issue of
stock and bonds. would show the
unquestionable illegality of such
proposed issue.
The Board of Gas and Electric
Light Commissioners, learning of
the illegal issue OF this stock and
the bold infringement of consti-
tuted authority, notified the Massa-
chusetts Pipe Line Company that
it had not only issued its stock ille-
gally, but that its officers and direc-
tors had committed a misdemeanor
punishable by fine and imprison-
ment. Then and not until then did
the Massachusetts, Pipe Line Com.
pany ask the Board of Gas and
E ectric Light Commissioners to
ratify their illegal action, and the
hearing on February 7th is the
result.
If it is possible for the Massa-
chusetts Pipe Line Company to do
what it has done, and it and its
officials are allowed to go unpuu-
ished, unquestionably the prece-
dent they have established will be
quickly followed by scores of "wild-
cat" schemes, until the name "Mas-
sachusetts" attached to q gas and
electric light security will mean no
more than the name of those States
where nothing is required for the
issuance of stocks and bonds but
the payment of a small fee to tho
local attorneys, and the millions
of securities alrea ly created under
the conservative supervision OF the
Board of Gas and Electric Light
Commissioners will quickly change
from first class investments to
speculative footballs.
It is clearly the duty of the
three classes above mentioned to
aid the Board OF Gas and E &C.
trio Light Commissioners with all
the information in their power,
to the end that they will make
this. the first attempt at high
handed infringement of the cor
poration laws of the Common
wealth of Massachusetts, SO ex-
pensive an infringement of the
laws that it will never be attempted
again, for probably never again
will such an opportunity arise for
teaching schemers that it is
disastrous to attempt to evade
the well-established policy of
Massachusetts, represented by q
Commission which has justly
earned a reputation for conserva-
tism. intelligence and courage
for if the Board of Gas and Elec-
trio Light Commissioners stamp
the stock of the Massachusetts
Pipe Line Company as illegal,
the corporation itself does not
legally exist, and the 50-year con-
tracts which it has made with tho
seven Boston companies fall to
the ground, and thereby destroy
the entire structure of the New
England Gas g. Coke Company.
which, in its turn, will re-
lease the unfortunate underwriters
who have purchased l 100000 of
worthless bonds, and the tremen-
dous loss now impending will have
to be borne by the foreign specu-
lators who are responsible for the
creation of this chimerical creature
of modern ~financa, instead of New
England investors, as was intended
when the scheme was first created.
THOMAS ". LAWSON.