Evening journal., 1904-11-29


The granting Of a franchise to the
Otto Gas Company by the Street and
Sever Commission this morning was
again delayed, this time until next
Tuesday 1t appears that the longer
the matter hangs fire the more OBJ
stacles arise to prevent a final agree
ment being reached between the city
and the gas concern.
Harman Made Charges.
This mornings discussion was of an
interesting nature. City Solicitor Rob-
ert G. Harman and Mayor Charles d.
Bird were present as were the officials
OF the Otto Gas Engine Company.
William S. Hilles was there represent
ing the Wilmington Gas and Electric
Company Mr.. Harman made charges
against the Wilmington City Gas Com
pany that caused some surprise to
those who attended the meeting. He
said the local company in its original
charter agreed to five the city first
option on its plant at first cost Of its
construction with six per cent. added,
but II afterward had the obnoxious
clause surreptitiously stricken out by
an act of Legislature. He also charg-
ed the company with watering its
stock and increasing it's capital so as
70 cover its earnings Of twelve per
cent. According to Mr.. Harman's
statement the local gas concerns fran
chise prevented It from making more
than six per cent. annually. but the
profits OF the company increased so
enormously that it was commonly rum
ored that the earnings of the company
reached 10 per cent. on its invested
canital. In order to retain this ad-
ditional six per cent. profit he says the
company watered its stock and in
creased its capital so that it earned for
the stockholders this additional profit
Mr.. Hilles objected several times to
Mr.. Harman's statements, saying that
he did not come to the meeting for
the purpose Of defending criminal
charges against the Wilmington Gas
and Electric Company. He said: %
was instrumental in having the clause
pertaining to the sale of the local gas
company's plant stricken out Of the
franchise. but I don't think owe any
explanation to my learned friend OF
ANYBODY else for my part in that af-
fair"
Two Objections Made.
The resolution offered by the Otto
Gas Company. amended at the last
meeting of the Board of Street and
Sewer Commissioners. was read. Fol
lowing the reading Of the paper, Mr.
Harman raised two objections one wa:
that the clause relating to the sale oi
merger of the company's plant in case
II was granted a franchise, was no
specific enough and should contain the
additional word lease.
The other was a new clause to b,
added to the resolution providing fol
the appointment of a commission o.
three men to ascertain the first cost o.
the plant I'm the event the compan,
desired to sell out sometime in the fu.
ture. To the first objection Alfred q
Crozier, representing the Otto Com
pany, agreed, but to the second h
made strenuous objections. He sal,
that the Otto Company intended ex
pend from one-half to a million Of dol
lars here and he did not think Il
sane move to agree to give three mel
the entire say over that amount of in
vested capital. He further said tina
it was not the intention Of the com
pany to Gefraud the city. but It wa
Obliged to get such franchise as no
TO impair the value Of the company
securities.
Mr. Harman insisted on the claus
being inserted and told Mr.. Crozie
that there was no sense in his remark.
He said that it would be a simple mat
ter to ascertain the first cost of
plant and he knew that three uninter
ested men would be as fair to one mart
as to the other. He said such matter
are always arbitrated and he saw :,