The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1899-04-05
A Sharp Decline in
Prices Expected.
SMALL SHAREHOLDERS SAVED
RADICAL ACTION OF STOCK AND
BOND EXCHANGE.
Officials of the Lighting Company
Will Fight the Proposed Re
duction of Rates by the
Supervisors.

The shares of the San Francisco Gas
and Electric Company were not listed at
the Stock and Bond Exchange yesterday.
This action was taken, the officers of the
exchange affirm, to prevent a panic in
lighting stock and the injury of the small
shareholders, of whom there are several
thousand in this city
1t is one seldom resorted to. The prices of
shares were affected noticeably by the an
nouncement of the Incorporation of the In
dependent Electric Light and Power Com
pany last Wednesday. The stock dropped
off several points, going down from So to
rs On top of this came the radical action
of the Supervisors reducing the price of
gas to private consumers from 81 Is per
thousand feet to 81 10. The brokers knew
there could be but one result when the
public became informed of the cut in
rates. The reduction in rates meant
corresponding reduction in price of stock
consequent upon the efforts to unload be-
fore the bottom dropped out of the mar
ket.
The officials of the exchange decided to
drop the gas stock from the securities
listed until they learned what the COM
pany would do to protect the interests Of
pointed, consisting of Jacob Barth. J. r.
X. Nuttall and Henry st. Goar, to visit
President Crockett and learn what stand
the gas company would take. Mr.
Crockett Informed the committee that his
associates expected Mayor Phelan to veto
the order of the Supervisors on the
ground that the rate fixed would not al
low the company reasonable profit on the
capital invested in its plant. Should the
Mayor sign the order the committee was
assured that the matter would be taken
at once to the courts for adjustment.
The committee was further informed
that the officials of the gas company be-
last July are valid. Judge Seawelfs re-
cent decision TO the contrary notwith-
standing. The company expects to col
lect the full amount of the bills.
The committee reported on it's investi-
cation with the result that the stock was
listed during the afternoon session of the
the price fluctuating between ST. and $72.
The price on Monday before the Super
visors took action was $3 TO
The directors Of the San Francisco Gas
and Electric Light Company will meet this
morning to discuss the conditions with
which they are confronted. This is the
ate and has not been specially called be-
cause of the recent happenings which
have affected its shares. President
Crockett took a philosophic view of the
matter yesterday.
Il have not canvassed the situation
either with the officers of the company
Is no necessity of haste, as we feel sure
matters will adjust themselves satisfac-
torily in due time. The Supervisors have
fixed a rate a which we are to supply
our gas If this is not legal the courts
will see that justice is done us. We ex
pect reasonable compensation for our
products and we will get it
Il do not believe the Supervisors con-
templated the action which they took nm
ally in fixing the rate at 81 10. They have
displayed a lack of knowledge of parlia,
mentary law and usage which has re.
suited in their voting without clear con-
ception of the matter under discussion.
The officers of the company have not out
lined their future plan of action. l do
not know whether the change made by
the Supervisors will complicate our ac-
counts or not.
THE Supervisors undoubtedly have
have made if thew 50 desire at any SIM SIM
sequent meeting, so the action may be
undone at some future time. We have
been all through this before and are not
alarmed at the turn affairs have taken"