New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-05-02
PRICE THREE CENTS.
BIG CUT IN GAS RATES.
CONSOLIDATED AND MUTUAL REDUCE
TO 65 CENTS.

BELIEVED TO BE A DESPERATE EFFORT 10
CRUSH THEIR RIvALs-oTHER coMPA-
MES HAVE NOT YET DETER
MINED ON THEIR COURSE TO
MEET THE REDUCTION.
The Consolidated Gas Company and the New.
York Mutual Gas Light Company yesterday
gave notice of a reduction, to take effect I'm
mediately. in the price OF gas from 81 10 to IS
cents 1000 cubic feet The sudden cut of
about 40 per cent taken by Wall Street to
mean that the two companies had not only de-
cided to retaliate swiftly and heavily upon tho
Standard Gas Light Company for alleged In
juries suffered by them at its hands. but had
also delivered a blow the effect Of which would
be TO bring the Standard company into combi-
nation with them. The Consolidated like the
Brooklyn Union Gas Company, is practically
owned by Standard Oil interests. and the con-
troll OF the Mutual Gas Light Company has
within the last few months passed to interests
identified with the Consolidated Gas Company.
The New-Amsterdam company. which was
formed few years ago by the amalgamation
OF the New-York and East River and Equitable
Gas Light companies. is also a competitor OF the
Consolidated and the Mutual; but In the. di-
rectory OF the New-Amsterdam company is II.
II. Rogers, one Of the most influential members
of the Standard Oil group. whose presence In
that board would seem 10 indicate that the
ew-Amsterdam company is not on unfriendly
terms with the Consolidated and Mutual COM
panies.
There used to be an understanding among tho
gas companies as to division OF territory ana
maintenance OF rates but a disagreement came,
the Standard asserting that the Consolidated
not keeping its part Of the bargain. and
for the last few months the two companies have
been at odds.
The Standard company, IL Is said has since
then carried on an exceedingly aggressive war
fare. pushing its business into the territory OF
the Consolidated making special rates to cer-
tain consumers, offering free gas stoves. Wels-
bach lights and plumbing, and requiring no de-
posits for the installation OF gaspipes and fixt-
ures. The Consolidated retaliated TO slight
extent but all the time it was evidently saving
itself for the blow which was struck yesterday.
DETERMINED WAR PLANNED.
1t was thought several months ago that gen.
eral consolidation Of the gas companies was on
the point of being effected. and Russell Sage.
president OF the Standard Gas Light Company.
was quoted at the time as saying that he had
no objection 10 consolidation IL an offer satis-
factory to himself should be made for his prop
erty. The men in the Consolidated company
are known as determined antagonists, and
should be able to wage a war which would re-
suit In the disappearance Of at least one OF their
rivals independent corporation.
Under law passed three years ago the price
Of gas in this city was to be reduced from 81 20
a thousand cubic feet, the rate then ruling
five cents each year until 1t reached 81 thou
sand cubic feet. At 65 cents. It is believed, sas
will be sold at a loss or certainly at an In
finites,mal profit. So. while the Consolidated
started In yesterday as though 1t were resolved
70 gain it's end. by making the great cut to I'd
cents the struggle. If at all prolonged. is iikeiy
to have a marked effect upon its revenues. Inc
prospect Of this diminuton. coupled with the
influence of the Ford Franchise Tax bill, sent
down the price Of the stock yesterday TO 49,
net loss for the day OF II points.
There were rumors that the Standard Gas
Company would reduce its rates. and so keep
up the fight in earnest. but at the office OF the
president. Russell Sage this was denied.
Harrison f. Gawtry, president Of the Consoli.
dated Gas Company declined last night to dis
cuss with Tribune reporter the reasons which
led his company TO cut gas rates or the griev-
ance which his company had against Its rivals.
Secretary o. F. Zollikoffer, Of the Consolidated
company, whose name the Announcements
was published, seen yesterday at MS ONCE
at No Irving Place. and asked TO say some-
thing about the reduction. but he was loath 70
talk He finally said: The reduction was made
simply because 1t was believed TO be for the best
interests Of the company" Mr.. Zollikoffer re-
peated this several times. once accidentally
saving "for the best interests Of the public, but
he speedily corrected himself by repeating the
= 1rSf
new appliances that would make the production
Of gas cheaper had been found practicable, ana
that the reduction would come entirely out OK
the profits of the company. He denied that his
company had any connection wir' amy other.
Treasurer Doane OF the Consolidated COM
pany. refused to say anything on the subject
William L. Purdy assistant secretary OF tne
New-York Mutual Gas Light Company. admit
ted frankly that the reduction was the result OK
the war between the rival gas companies
OUTCOME OF THE FIGHT.
"It Is an outcome" he said, 'of the war that
has been waged against the Mutual company
and the Consolidated company since Decem-
ber ~ the other companies. AS for the Muf-
nal II has a large following and is going to
try to keep it. We are going to do as wen oy
our customers as any other company does for
theirs No. the proposed municipal ownership
OF gas plants had nothing TO do with IL IL is
simply a question Of fight
Charles F. Cutler president OF the New-York
Telephone Company. and director Of the New
Amsterdam Gas Company. when asked II MS
gas company would meet the cut said. I guess
our company will manage TO hold It's custom
ers"
When asked what the reason for the cut was'
he said. well the Consolidated and the stand
ard have been nagging one another for some
time and guess the Consolidated thought
would make such a cut as would be exuemey
difficult for its rival to meet. The blow 's h''
aimed at our company. believe
Malcom Montrose Graham. assistant see'e''
..a.,rar ~ the New Amster am Gas COM