Evening journal., 1904-11-29
ME ARE told by a reader who


w searched for information that in
no city in the country that approx
mates Wilmington in size are there
competing gast companies. Even in
the larger cities. competition has
largely been done away with. The
reason is that the history of all COM
petition ends in merger; and with this
In view, municipalities have become re-
luctant TO grant new franchises, which
would result in no benefit to the peo-
pie
For were there a franchise given to
a second company in this city with a
provision for sO-cent gas. Immediately
The competition would begin. The old
company would be obliged to meet the
new rate, and to induce customers to
tear up their yards for the new pipes
the other company would have to cut
the price stiil further. This OF course
would mean running both plants at a
loss; and some day from one company
would 90 proposition to the other to
merge.
But II will be objected that the new
company could not merge with the old
without losing its charter But we
know Of no means OF binding cor
poration in any such manner. The
stockholders are at liberty to sell their
shares OF stock to anybody and the
most likely buyer is always the rival
company, or an individual acting for 1t.
Were this not so there would be dan
ger for minority holders in the com
pany; for IL the charter were to be
forfeited on the sale OF a majority of
the stock to the rival company. the in
nooent minority would lose every dol
lar they put into t.
Wilmington needs one gas company.
and she needs no more. II that COM
pany does not serve the citizens as Il
should, they have their remedies.
Now we believe charter was asked
for new company because a proposed
manufacturing concern wanted a sup
ply Of gas and claimed that this could
not be had without building its own
plant In other words the manufac-
turing company decided while ne
gotiations were pending that II would
have nothing 20 do with the old gas
company. II has never seemed to u.
that this action smacked OF busines,
sense. but that it resemblcd petulance
or that there was an Interior motive
The immediate application for fran.
chise to make gas seemed to confirm
the latter view.
The franchise that Is asked provide,
for the right to furnish electric powe
and lighting We do not know whethe
this is necessary because OF the nee
Of this kind Of light and power in III
proposed manufacturing plant but W
do know that It would make the frar
chise more valuable.
But we feel that the people OF WI
mington should understand that n
probability OF competition in gas /
this city is very remote. The histor
Of gas competition shows that the Ia.
chapter is always the record OF
merger, particularly in cities of thl
size. Aud as there is no means
making this impossible. we may Sc
what we should have to expect.
There was the Hydrogen Com
pany as an example. Did this com
pany ever intend TO make and sell sas
No; the franchise it demanded frol
the Street and Sewer Commission wa
only to make its holdings more val.
able, and to compel the Ole gas con
pany to merge with It. We published
year or two since numerous iette
from the president OF the oxy-Hydr,
gen Company. all OF which in sui
stance read: Buy US out or sell on,