New-York tribune., 1899-11-24
END OF THE GAS RATE WAR
NEWAMSTERDAM RESTORES PRICES TO
THE LEGAL MAXIMUM.
SIMILAR ACTION BY THE CONSOLIDATED
AND STANDARD COMPANIES EXPECTED
AT ToNCE-CoNsoLIDATED MAY ABB
sORB THE OTHER TWO

soRB THE OTHER TWO
| The war OF rates which has been in progress
| for nearly seven months among the gas COM
! panies Of this borough is practically ended.
The directors Of the New-Amsterdam Gas Com
I pany yesterday held a meeting at the office Of
H. b. Hollins & Co., and subsequently the fol-
lowing important and significant statement was
issued by Frank s. Hastings, a leading member
Of the board
In view Of the fact that the company has
reached the limit Of its capacity, II has been de-
termined by the directors to restore the price Of
gas TO the legal rates, beginning with Decem-
Der j.
1t Is learned upon the best authority that sim
liar action will be taken to-day by the directors
of the Consolidated Gas Company when they
meet to fix the dividend for the current quar-
ter, although several OF the directors yester-
day afternoon professed ignorance Of any such
projected move, and declared that the an
nouncement Of the Notwithstanding advance
in prices was news to them. President Russell
Sage and Vice President John T. Terry Of the
Standard Gas Light Company said that the
Board OF Directors Of that company would at
its meeting to-day in all probability pass reso-
luton restoring the price Of gas to 81 10 thou
sand cubic feet, the rate prevailing up to May l.
Wednesday had made him a liberal offer for
his Standard Gas Light holdings, this offer to
extend to all stockholders OF the company. had
called on him yesterday with a check for a
large amount to bind the bargain, but that he
had refused to accept this check. he un-
willing to be tied up. He feared that the COM
panles might find that the restoration OF rates
would be unavailing, and that they had by their
strife killed the goose that laid the golden egg,
for It must be remembered that there was a
governing body at Albany and a committee
from that body might inquire into the matter
and recommend legislation the effect of which
would be to establish a rate for gas permanent
ly lower than that now authorized by law.
WALL STREETS INTERPRETATION.
Wall Street was quick to reach the conclusion
that the New-Amsterdam compsny's announce
ment was equivalent to notice that the gas war
was over. a view reflected in the course Of the
two stocks chiefly affected. Consolidated Gas
rose sharply to 199& closing at 1891, net
advance for the day OF five points. and New
Amsterdam. which is traded in "on the curb
closed at 30 bid, 321a asked compared with
% bid and 29z asked the last quotation Of
Wednesday,
A theory which found much acceptance In
Wall Street yesterday that the ending OF
the gas war direct result of the sale a
few days ago by the Peoples Gas Light and
Coke Company of Chicago OF the Manhattan
oil Company owned by it. to the General In
dustrial Development Company. Of Lcndon, rep
resenting the Standard Oil Company. The Man
haitian Oil Company. it is said, was serious
competitor Of the Standard Oil Company. and
the Standard Oil interests which control the
Consolidated Gas Company and the NewYork
Mutual Gas Light Company, months ago put
pressure upon the Peoples Gas and the other
so-called Flower stocks" with the object Of
compelling Anthony ~ Brady who is an infu
entail director of the Peoples Gas Company, to
arrange the sale OF the Manhattan OIL Com
pany to the Standard. Mr. Brady is also
director Of the New-Amsterdam Gas Company,
and the local gas war according to report, was
begun largely with the same object in view
The war began on May 1, when the Consoli-
dated and the Mutual reduced the price Of gas
from 81 10 TO 80 cents a thousand cubic feet. The
Standard Gas Light Company the next day met
this rate. and on May the NewAmsterdam
Gas Company made a rate Of % cents a thou
sand cubic feet. There have been many rumors
Of settlement Of the fight, but they have often
been found baseess. Now. however, there seems
no question that the controversy is virtually
ended. Three years ago n law was passed at
Albany fixing the price Of gas here at 81 20 a
thousand cubic feet and providing for a reduc- |
ton Of five cents each year until the price should
reach 81, which should thereafter be the perma- |
nent rate The present price Of gas under this |
law is 81 10 and after January l the price VIII |
be 81 %.
CONSOLIDATION LOOKED FOR.
It IS assumed that the going into effect OF the |
agreement TO restore rates will be followed |
bv the announcement Of the absorption by the |
Consolidated Gas Company of the New-Amster-
dam and Standard companies. An unconhrmed |
rumor yesterday had IT that the New -Amster-
dam stockholders would receive about 30 for |
their common stock and 90 for the preferred.
The Consolidated Gas Company before the |
war paid s per cent dividends Dut the yearly !
rate was reduced six months ago 10 per cent |
and three months ago 10 per cent.
Russeu Sage when seen at his home last |
evening declined to discuss the action Oh ont
New Amsterdam company The statement
given out covers the case" he said Mr.. Sage
wouldn't say whether this meant an END or the
gas war or not, nor would ne say anything
about possible consultations
John c. Tomlinson, director or the New
Amsterdam company, was seen last night AT
his home in West Fffty-seventh-st he vas was
asked II there an all around understanding
that the rate war at an end and said; so
far as | know action to-day had nothing 10
do with the Consolidated. It was wholly inde-
rondent The simple fact Of the matter is that
making and selling gas at 90 cents a thousand
is a ruinous business. When the Consolidated
company made the cut last spring we met II.
and thereby largely increased the number OF
our customers But we have been losing money
all the time. It is like selling for 81 30 a hat
that costs 50 The more you sell the worse you
are Off Like all rate wars this one had 10
come 10 an end. We determined to take the
bun by the horns and settle It for ourselves.
anyway"
HAS Mr. sage's company decided to restore
the price to 81 10, too?"
Il do not know exactly what the Standard is
going 10 do"
Does the action OF the New Amsterdam com
pany to-day foreshadow combination Of all
the companies at an early day?'
'That cannot say. All I know Is that up to
to might there is consolidation and no I'M
mediate prospect Of one. But these big con-
soidations are made in hurry when things
get to the consolidating point, and twenty-four
hours cfttimes brings about a change In things
that s totally unexpected n few hours before
hand"
"Will there be a combination eventually